Roots Sustainable Agricultural Technologies ( ASX:ROO )
It hasn’t been long since we last updated you on Roots (ASX:ROO), but already the news is flowing thick and fast and it is good news to boot.
Following its first significant commercial sale to the tune of A$323,000 (US$257,000) with leading international ag-tech integrator, Dagan Agricultural Automation, ROO has now signed a US$19 million exclusive distribution agreement over five years targeting the world’s largest vegetable production market – China.
The deal is once again with Dagan but allows Dagan to exclusively sell ROO’s patented root zone temperature optimisation (RZTO) technology and associated products for three years throughout China.
This is a big deal as China accounts for 53 per cent (nearly 550 million tonnes) of total global vegetable production.
In China, ROO now a substantial market to tap into which could have a significant effect on the company’s current market cap of $26 million.
Think about it, that’s a $19 million deal for a $26 million capped company.
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ROO is looking to establish a long term commercial relationship with Dagan to further enforce its global expansion ambitions.
Importantly, this $19 million deal with Dagan also acts as an endorsement of ROO’s technology and its ability to help address some of the critical agricultural production and pollution challenges this market faces.
Israeli Ag Tech Innovator ROO Strikes a Conditional US$19M Exclusive Chinese Distribution Agreement
Feb 5, 2018
It's been a big week for Roots Sustainable Agricultural Technologies (ASX:ROO).