SYDNEY: Roots Sustainable Agricultural Technologies Limited secured a Non-binding Letter of Intent (LOI) with existing partner, smart technology provider, Humboldt CCTV to integrate its proprietary Root Zone Temperature Optimisation (RZTO) technology and revolutionary heat exchange stub product into Humboldt’s Smart Agriculture (SmartAg) solution.
Both parties will also progress an initial deployment to test the integrated solution with a leading cannabis grower in the 45 days from signing the LOI.
Humboldt is an established family owned business that specialise in smart agricultural technology and wireless connectivity solutions for farmers, with particular focus in the cannabis sector.
The group has a longstanding and established customer base, as well as a team of engineers and sales representatives covering the Californian market.
The development follows an initial non-binding LOI with Humboldt to market, sell and distribute root zone heat exchange kits in Northern California. Under the new agreement, both parties will collaborate to integrate Roots’ solutions into Humboldt’s SmartAg technology.
Humboldt’s SmartAg solution allows growers to wirelessly monitor soil moisture, crop temperature, weather, weather station data and environmental conditions at a grow site.
The solution comprises of a portfolio of sensors and Humboldt’s secure wireless networks to enable real-time access to information and equipment deployed across remote locations.
As part of the agreement, Roots will invest USD$100,000 in Humboldt CCTV in return for 10% of its holdings. The invested proceeds will be devoted to marketing and sale initiatives in the CA USA Cannabis sector. ROOTS and Humboldt will also progress the first deployment of the Company’s heat exchange stub, managed and controlled by Humboldt’s SmartAg offering at a large cannabis cultivation facility located in Northern California.
The trial will be used to progress business development initiatives with other growers and potential customers across Northern California. California represents a large market opportunity for Roots.
California is the top agricultural producing state in the USA and contributed US$50Bn in revenue for output in 2018. It has over 69,000 individual farms and ranches and contributes ~40% of all organic product in the US.
Roots Executive Chairman and CEO, Boaz Wachtel said: “The extension of our agreement with Humboldt coincides with major regulatory shifts in the cannabis sector, leaving Roots very well placed to capitalise on a number of near term opportunities.
“We are very confident that our new, integrated smart solution will be well received by cannabis growers in Northern California, as it will allow cultivators to remotely manage many labour intensive aspects of the growing process.
“The US is a key market for Roots and having an established and reputable partner line Humboldt will allow to us to build our international footprint further and deliver another competitive advantage at a time of restricted travels. We look forward to updating shareholders on further progress in the near term.”
Israeli-based, Roots Sustainable Agricultural Technologies Ltd. is developing and commercialising disruptive, modular, cutting-edge technologies to address critical problems faced by agriculture today, including plant climate management and the shortage of water for irrigation.
Roots has developed proprietary know-how and patents to optimise performance, save labour, and reduce energy consumption to bring maximum benefit to farmers through their two-in-one root zone heating and cooling technology and off the grid irrigation by condensation technology.
Roots is a graduate company of the Office of the Israeli Chief Scientist Technological Incubator program. www.Rootssat.com