- ROOTS Sustainable Agriculture Technologies (ROO) has signed a distribution deal with Water Ways Technologies
- Through the contact, Water Ways will have the right to sell ROOTS’ root temperature tech in Canada
- The technology is designed to keep crops’ roots at the perfect temperature
- If Water Ways can sell three systems within nine months, the contract may be extended
- ROOTS shares rose 7.14 per cent today, closing at 3 cents each
Agriculture tech company ROOTS (ROO) has signed a distribution deal with Israel-based water treatment specialist Water Ways Technologies.
The deal has no cash impact on either of the companies as it stands, and neither company needs to make any payments.
Rather, it simply gives Water Ways the right to import and sell ROOTS’ Root Zone Temperature Optimisation (RZTO) tech in Canada, where Water Ways mainly operates.
The contract was inked up after six months of conversation and comes with some key conditions.
The initial term of the contract only lasts nine months, but the two companies will only consider extending the contract if Water Ways sells at least three RZTO systems in that period. On top of this, at least three customers need to show an interest in buying an RZTO system within the first six months.
The RZTO system is designed to keep a plant’s roots at an optimal temperature. ROOTS installs a closed-loop system of pipes under the ground — a lower part deep enough that the soil is unaffected by external weather conditions, and an upper part that targets a plant’s root zone just below the soil surface.
Essentially, the stable temperature of the deeper part of the system charges the water flow, which is then pumped through the pipes near the roots. According to ROOTS, this type of system boasts increased yield and improved quality in crops.
ROOTS and Water Ways believe the RZTO tech is complementary to the Water Ways irrigation systems — particularly in the Canadian cannabis market.
Dr Sharon Devir, the CEO and co-founder of ROOTS, said both companies have realised the “significant commercial opportunity” of the Canadian cannabis industry.
“By combining our respective technologies to deliver a better outcome for growers, we are exceptionally well-placed to capture sales more rapidly,” Sharon said.
“Water Ways’ well-established presence in Canada also provides us with seamless and cost-effective market entry,” he said.
Water Ways CEO Ohad Haber shared similar sentiments.
“We are convinced that the system has enormous technological advantages for the cannabis cultivation sector as well as the broader agribusiness sector,” Ohad said.
ROOTS shares rose 7.14 per cent today, closing at 3 cents apiece in a $3.5 million market cap.