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#Business Model/Strategy
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Added 3 years ago

Started looking at this one after a friend of mine had made good coin on hooch stocks from an ETF listed on TSX. He pointed me to this one as their tech is across agriculture, although they have spent time on research that could see cannabis yields increase by 20 percent. 

Roots Sustainable Agriculture has developed what they term Root Zone Temperature Optimisation (RTZO) technology for use in greenhouse, nursery, and the aforementioned cannabis. RZTO mitigates heat and cold stress using a ground source heat exchange system, which helps in increasing crop yield and quality.

At the end of last year, the tech was trialled on asparagus with massive increase in yield. 

The company has announced a successfully installed stand-alone Irrigation by Condensation (IBC) system powered by renewable energy. This system gathers the required moisture from humidity. Makes me think there are placed this would not be effective. 

This company is tiny with a market cap less than 5M, and while that is not a bad thing, it will be all down to execution to stem what has been a downward slide in the share price. They have had some sales wins, but the consistency needs to be there. 

Looking briefly at this also made me think of tomatoes. Specifically, the 15 million kilograms of tomatoes that are grown by Sundrop Farms for Coles in the desert near Port Augusta using concentrated solar and desalinated water from the Spencer Gulf. If Roots Sustainable can bag an installation for their wares anything like this, they will be on their way.