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RotoGro (ASX:RGI) - CEO, Adam Clode - The Market Herald
CEO, Adam Clode
Source: HotCopper
  • RotoGro (RGI) has secured a C$1.9 million purchase order for its rotational garden and plant nutrient management systems via its subsidiary, from Canniberia (Portugal)
  • Canniberia is working to establish a facility in Moura, Portugal, to cultivate cannabis for high-grade medicinal products
  • The facility would be the first commercial operation using RotoGro's products in Europe
  • Given Canniberia is granted a cannabis cultivation pre-licence, RotoGro will supply 72 Garden Systems and one Fertigation System under phase one of construction for $1 million
  • Under the second phase, RotoGro will supply a further 72 Garden Systems, bringing in $900,000 in sales revenue
  • Shares have been trading 5.6 per cent higher at 4.7 cents

RotoGro (RGI) has secured a C$1.9 million purchase order for its rotational garden and plant nutrient management systems, via its subsidiary, from Canniberia (Portugal).

The company's subsidiary, Roto-Gro International, will also provide onsite assembly, installation, testing, commissioning, training, and IP support.

Canniberia is working to establish a facility in Moura, Portugal, to cultivate cannabis for high-grade medicinal products for the European market according to Canniberia CEO and Managing Partner Paulo Leandro.

"Canniberia aspires to lead the medicinal cannabis sector on the Iberian Peninsula. Our products will focus on specialist medicinal cannabis flower to the European pharmaceutical industry. Leading the industry is highly dependent on innovation, maximising yield and lowering operating costs," Paulo explained.

The facility would be the first operation in Europe to use RotoGro's products on a commercial-scale, as RotoGro Cheif Operating Officer Michael Di Tommaso explained.

"The successful execution of the Purchase and Sale Agreement with Canniberia and the resulting Canniberia Purchase Order are significant achievements in RotoGro’s strategy to gain a foothold in the burgeoning European lawful cannabis sector," Michael stated.

"The Canniberia Facility will be our first large-scale European commercial operation which will serve as our European flagship to promote the RotoGro Garden Systems – a major milestone," he said.

The cultivation hub will be built in two phases and will be outfitted Rotogro's Model 420IT Rotational Garden Systems and supporting technology and infrastructure.

Under phase one, RotoGro will supply 72 Garden Systems and one Fertigation System — a plant nutrient delivery system — for C$1 million.

The second phase, to follow within nine months of the phase one order, will see RotoGro supply a further 72 Garden Systems, bringing in C$900,000 in sales revenue.

Canniberia still needs to be granted a cannabis cultivation pre-licence by Infarmed, the relevant regulatory body in Portugal. However, if all runs smoothly phase one will commence in the first quarter of 2021.

Shares have been trading 5.6 per cent higher at 4.7 cents at 1:50 pm AEDT.


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