- RotoGro and Rotary Garden Systems are almost ready to team up for Malaysian and Thai cannabis cultivation
- The companies announced the potential partnership last month, and are now in the processing of finalising negotiations
- Should the business venture go ahead, the companies plan to create and manage the first-ever cannabis cultivation space in Malaysia and Thailand
- RotoGro shares saw a brief uptake over morning trade, but have since settled again to trade flat at 16 cents each
After a brief stop-over in Canada last week, RotoGro has set its sights back on the Asian hemp industry.
As the lawful cultivation of cannabis becomes a reality in Thailand and Malaysia, RotoGro is poised to grab a chunk of the new market via a partnership with Rotary Garden Systems (RGS).
The news was first announced in early October, but RotoGro has updated the market today on the Malaysian Cannabis Cultivation Project.
RGS has been a long-time major shareholder in RotoGro, but the two companies are nearly ready to take their business relationship to the next level.
According to the company, negotiations with RGS should be finalised in the coming weeks — meaning RGS could soon be building a first-of-its-kind lawful cannabis cultivation facility in both Malaysia and Thailand using RotoGro tech.
Should the venture come to fruition, RGS will fund the creation of these cultivation facilities, and RotoGro will sell RGS its cylindrical rotating garden tech and software. Once completed, RotoGro will manage the cultivation facilities.
RotoGro CEO Adam Clode said the company is getting excited as it gets one step closer to locking in the partnership.
“We believe this agreement will secure RotoGro’s position in the lawful cannabis space in Asia,” Adam said.
“Strategically aligning ourselves with RGS, a well-funded group with an understanding of the Malaysian and Thailand lawful cannabis marketplace, will be a progressive step forward for the company, increasing shareholder value as we broaden RotoGro’s global presence,” he said.
Once the contract has been signed, the only thing standing in the way of new cultivation facilities is be the appropriate licence to cultivate, process, sell, and export the legal cannabis product from the Thailand and Maylasian governments.
Today’s announcement follows a string of good news from the company, with RotoGro buying up a major interest in Canadian hemp grower CanniFarms last week, and RotoGro tech planting Oakum’s first crops just two days ago.
RotoGro shares saw a brief uptake over morning trade, but have since settled again to trade flat at 16 cents each.