Australian ag-tech pioneer RotoGro International claims its stackable hydroponic technology can produce 160% to 185% more dry cannabis flower than traditional flat deck systems. The ASX-listed firm has been conducting trials at a research facility it built in Canada and it delivered a bullish update to the market on Monday morning about the results.
It said the RotoGro Hydroponic Garden System has consistently yielded 7–9 lbs of dry final flower product per harvest, compared to 2.8lb seen with flat deck systems that occupy the same floor space. The patented technology spins budding seeds around a central lamp in a process designed to optimize electricity, water and food use, as well as floor space.
Each RotoGro Hydroponic Garden System takes up 32 sq ft and they can be stacked two or three high, which doubles or triples the yield. It compared its average yields to findings from a Carnegie Mellon University and Washington State Liquor and Cannabis Board study into traditional flat deck systems and said its methods produced vastly higher yields.
“The future is very exciting as we continually improve and refine our technology in conjunction with our global data control centre to optimise yields and maximise cost efficiencies,” said managing director Michael Carli.
Shares in the firm are up 19% to AU$0.50 ($0.36) in the past five days. Last month it completed a $4.5 million capital raising scheme after bringing a range of institutional investors on board. That allowed it to expand its research and development facility in Caledon, Ontario, and increase its sales force and management team. Barclay Wells Limited Pty Ltd and Emerald Capital Australia Pty Ltd managed the fundraising drive.
It then inked a deal to snap Canadian cannabis firm Supra THC Services Inc from Valens GroWorks Corp. To complete the deal, it paid Valens C$11 million ($8.3 million) over four milestones, made up of 80% in RotoGro shares and 20% in cash.
Carli said the deal was a huge step in its plan to establish itself as a global leader in the cultivation of cannabis flower and the production of derivatives, and announced it would move into bigger premises after liaising with Health Canada.
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