- Verity Greens has agreed to use Roto-Gro International’s (RGI) patented cultivation technology in its flagship vertical farming facility in Canada
- The companies signed a $10 million technology licence agreement, under which Verity Greens will purchase 624 Roto-Gro rotational garden systems
- The partnership follows completion of an economic market assessment by Verity Greens
- Verity is now required to notify RGI of the city and province, state or other division where its cultivation site will be situated by the end of September
- Previously, Roto-Gro has reported “remarkable success” in cultivating several leafy greens and herbs using its Roto-Gro 710 gardening system at its research and design facility in Ontario
- Verity is collaborating with international distributors and supermarkets to secure long-term offtake agreements for sustainable year-round fresh produce
- Roto-Gro shares last traded at five cents each
Roto-Gro International (RGI) has signed a deal with Verity Greens to fit-out its flagship vertical farming facility in Canada with RGI’s patented cultivation technology.
Based in Australia, RGI provides sustainable and cost-effective technology solutions to both conventional and indoor vertical farms.
The companies have penned a $10 million technology licence agreement, under which Verity Greens will purchase 624 Roto-Gro rotational garden systems before the end of the year.
The deal provides for the payment of annual software licensing fees by Verity Greens and a scaling net profit share of up to five per cent of the net proceeds generated by each facility using Roto-Gro’s systems.
The partnership follows completion of an economic market assessment by Verity Greens and selection of Canada as the facility’s location.
Under the deal, Verity is now required to notify RGI more specifically of the city, province, state or other division where its cultivation site will be situated by the end of September.
Roto-Gro CEO Michael Di Tommaso said the collaboration is progressing well.
“Our relationship is a win-win situation. Roto-Gro will introduce our revolutionary technology into the booming indoor vertical farming space, while Verity Greens, utilising the Roto-Gro garden systems and supporting technology, will operate with a viable and cost-effective competitive advantage,” Michael said.
“This positions Roto-Gro well to become a leading indoor vertical farming technology supplier, while also providing Verity Greens with the tools to become a true industry leader,” Michael continued.
“Verity Green’s first facility also serves to further its objectives — to roll out indoor vertical farming facilities globally utilising Roto-Gro’s technology not only to generate substantial revenue for both companies, but also to provide a true sustainable solution to address the issues caused by food insecurity.”
Verity Greens CEO Harval Bassi echoed Michael’s comments on the deal.
“Roto-Gro’s technology helps us achieve sustainability goals by both cultivating high quality crops using less water and less power, while significantly increasing our yield to grow a space footprint and simultaneously significantly lowering our projected operational expenditure,” Harval added.
Previously, Roto-Gro has reported “remarkable success” in cultivating several leafy greens and herbs using its Roto-Gro 710 gardening system at its state-of-the-art research and design facility in Ontario.
Looking ahead, Verity Greens is collaborating with international fresh produce distributors and supermarkets to secure long-term offtake agreements for sustainable year-round fresh produce production.
Roto-Gro International shares last traded at five cents each at 10:17 am AEST.