- Roots Sustainable Agriculture Technology (ROO) has received firm commitments to raise $280,000
- Approximately 15,555,556 CHESS Depositary Interests (CDI) will be issued to sophisticated and professional investors at a price of $0.018 each
- A CDI is a financial product that gives investors the same benefits in foreign companies as those in Australia
- Money raised from the placement will be used to commercialise the Root Zone Temperature Optimization sales and marketing and business development opportunities
- Roots has ended the day 4.76 per cent in the red with shares trading for two cents each
Roots Sustainable Agriculture Technology (ROO) has received firm commitments to raise $280,000.
Approximately 15,555,556 CDIs (CHESS Depositary Interests) will be issued to sophisticated and professional investors at a price of $0.018 each.
This represents a 14 per cent discount to the 15-day volume-weighted average price to May 13.
A CDI is a financial product that is developed by a subsidiary of ASX that gives investors the same benefits in foreign companies as those in Australia.
Everblu Capital will act as Lead Manager for the placement and will receive a fee of six per cent of the total amount raised.
"Roots is pleased to raise funds now with our lead broker Everblu under difficult market conditions," CEO Boaz Wachtel commented.
"We hope that the international opening of movement will help Roots regain the sales volume it anticipated before the COVID-19 pandemic," he said.
Money raised from the placement will be used to commercialise the Root Zone Temperature Optimization (RZTO) sales, marketing and business development opportunities, and installation and engineering costs.
Some money will also be used to pay existing debt, costs associated with the placement, and general working capital.
RZTO optimises plant physiology for increased growth, productivity, and quality by stabilising the plant's root temperature.
The company installs a closed-loop system of pipes to mitigate the water temperature.
The lower part is installed where the soil temperature is stable and not affected by the weather. The upper part is in the crop's root zone just below the surface.
Water flowing through the lower pipes is charged by the soil's stable temperature, and the water (either hot or cold) is pumped through the upper pipes and released.
Water can be heated during the winter and cooled during the summer by up to 10 degrees celsius either way.
The RZTO significantly increases yields, increases growing cycle planting options, improves quality and reduces extreme hot or cold stress.
Roots has ended the day 4.76 per cent in the red with shares trading for two cents each in a $2.988 million market cap.