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Roto-Gro International (ASX:RGI) cultivates $406K purchase order

Industrial
ASX:RGI
07 July 2021 12:00 (AEST)

Roto-Gro International’s (RGI) subsidiary has secured a purchase order for over $400,000 from Wolf Island Cannabis.

Roto-Gro’s wholly owned subsidiary, Roto-Gro World Wide, has executed a CAD$380,000 (roughly A$406,800) purchase and sale agreement with Wolf Island Cannabis, which includes a technology purchase order for RotoGro’s patented rotational garden systems and plant nutrient management system.

Through the unconditional agreement, Wolf Island Cannabis has agreed to pay RGI a non-refundable deposit equivalent to 50 per cent of the purchase price by 9 July, with the delivery of the garden systems to arrive during Q4 2021.

The order includes onsite assembly, installation, testing, certification, training and IP support by RotoGro.

Wolf Island Cannabis is in the midst of constructing a cannabis cultivation facility in Ontario, with plans to establish itself as a commercial-scale cultivation operator in the region. The facility will be outfitted with RotoGro’s Model 420IT Rotational Garden Systems, together with the company’s supporting technology and infrastructure.

The facility is set to be made up of 20 RotoGro Garden Systems and one RotoGro Fertigation System, installed in arrays of four units, along with the RGI’s iGrow growing management system.

RotoGro’s CEO, Michael Di Tommaso, says securing the binding purchase order from Wolf Island Cannabis is an important step forward for the company.

“The Wolf Island Cannabis Facility will be the first commercial-scale lawful cannabis cultivation facility in Ontario, Canada which utilizes RotoGro’s patented and proprietary technology, enhancing RotoGro’s position in the Canadian lawful cannabis cultivation space,” said Michael Di Tommaso.

“We will continue to make every effort to secure similar purchase orders, with several promising technology inquiries and venture proposals on the horizon.”

Roto-Gro International shares were down 4.76 per cent, trading at 4 cents at 11:10 am AEST.

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