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- Roto-Gro International (RGI) has amended its existing agreement with Verity Greens, boosting the partnership between the two companies
- Verity Greens is currently in talks with three North American wholesale perishable food suppliers and has revised a strategy to pursue a full scale commercial perishable food cultivation facility
- Verity Greens is currently considering increasing its prospective purchase order of 624 rotational garden systems to 1872 to be used in this facility
- Based on the prospective market position of the proposed transaction, RGI says its appropriate to amend the technology licence agreement with Verity Greens
- RotoGro shares are up 15.8 per cent to trade at 2.2 cents at 11:26 am AEDT
Roto-Gro International (RGI) has amended its existing agreement with Verity Greens, boosting the partnership between the two companies.
The original deal was signed in April this year, allowing Verity Greens to use Roto-Gro’s patented cultivation technology at its flagship vertical farming facility in Canada.
Verity Greens is currently in talks with three of North America’s largest wholesale perishable food suppliers and, having “made significant headway in establishing the footprint necessary,” has decided to pursue a full scale commercial perishable food cultivation facility.
As such, Verity Greens is now considering increasing its purchase order of 624 Roto-Gro rotational garden systems to 1872 systems.
“Verity Greens advises the company that it remains committed to build facilities globally with Roto-Gro’s patented and proprietary technology, generating significant revenue for the company through increased technology sales and annual licensing fees,” Rotoscoped-Gro said in a statement this morning.
The amendment will see a deadline extension to execute a definitive agreement with Roto-Gro from December 31, 2021 to December 31, 2022.
The company says Verity Greens will retain a technology and patent licence for use only for the cultivation of perishable foods, with global exclusivity based on a right of first refusal.
RotoGro CEO Michael Tommaso said Verity Greens will spearhead the company’s products globally, with a particular focus in North America.
“The company remains committed to its venture with Verity Greens given the potentially lucrative nature of this proposed transaction,” he said.
“The amendment to the existing agreement facilitates Roto-Gro’s position as Verity Greens’ technology partner in the space, which we anticipate will come to fruition in 2022.”
RotoGro International shares are up 15.8 per cent to trade at 2.2 cents each at 11:26 am AEDT.
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