Roots Sustainable Agricultural Technologies Limited (ASX:ROO) has secured a new sales contract for its proprietary Root Zone Temperature Optimisation (RZTO) technology valued at $58,000 from My Green Fields, a medicinal cannabis farm in northern Israel. 

The sales contract comprises over 1,000 units of Roots’ proprietary heat exchange probe, which will be inserted into pots located around the farm. 

This new contract sales follow recent global regulatory shifts, including the United Nations decision to reclassify cannabis and the Court of Justice of the European Union (CJEU) ruling, which unlocks the European market. 

Sales expected to grow strongly

Roots executive chairman and chief executive officer Boaz Wachtel said: “This sales contract highlights the considerable interest that Roots is generating from large cannabis growers and cultivators and we expect sales to continue to grow strongly, particularly following recent regulatory shifts which will unlock large market opportunities for us.

“The recent decision by the UN and the CJEU have led to a large number of enquires about our technology and its applicability in the cannabis sector, which will be a major demand driver for RZTO.

“We are aggressively pursuing sales and business development initiatives, similar to our technology showcase to Bahrain’s delegation, and we anticipate new market entries and more sales in the coming months.

The cannabis sector has just had a massive boost from the new regulatory framework and we are ideally positioned to capitalise.”

20% increase in cannabis yields

ROO’s technology will be deployed to specifically assist larger cannabis plants and throughout the farm’s flowering room.

The system will utilise existing heat pumps and water tanks to supply hot or cold water as needed, based on plant root temperatures.

The Roots heat exchange probe was designed to be inserted into the tops of plant’s pots and grow bags to significantly simplify working procedures and lower the installation cost associated with Roots’ RZTO technology.

RTZO technology optimises plant physiology for increased growth, productivity and quality by stabilising the plant’s root zone temperature year around.

Optimal root zone temperature is known to be the most influential parameter in the plant’s physiology, besides water.

Based on previous tests, the heat exchange probe has increased cannabis yields by 20% or more with plant THC levels kept in similar ranges.

More sales in the cannabis cultivation sector are anticipated and this is the largest and most prospective market for RZTO globally.

Expansion into the Middle East

Following the Israel-United Arab Emirates (UAE) and Israel-Bahrain peace deals signed in September 2020, the company has progressed business development initiatives to expand into the Middle East.

Expanding into the UAE and Bahrain markets will allow the company to further broaden sales channels.

Roots was one of six companies selected by the Israel Export Institute to showcase its technology with Bahrain’s Minister of Industry recently.

Bahrain has the potential to become a lucrative market for Roots.

Despite low rainfall and poor soil, agriculture is an important sector for its economy and Roots believes its RZTO solution and Heat Exchange Probe technology could be utilised to increase plant yields in key crops including dates, figs, melons and pomegranates amongst others.