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Corporate Spotlight

Roto-Gro International Limited (RGI) manufactures and sells hydroponically-based rotational growing systems. The Company offers training of operation and maintenance of the equipment and technical support. Roto-Gro International serves customers in Australia.
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Interview with CEO Adam Clode

MEMORANDUM OF UNDERSTANDING

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RotoGro Signs Memorandum of Understanding for Malaysian & Thailand Technology, Royalty and Growing Management Agreement 

ASX Announcement 3 October 2019 


Highlights 

  • RotoGro enters into a Memorandum of Understanding with Rotary Garden Systems SDN BHD for its proposed cannabis cultivation projects in Malaysia and Thailand 
  • Rotary Garden Systems SDN BHD to fund the development and buildout of the proposed state-of-the-art lawful cannabis cultivation facility 
  • Formal negotiations for a Technology, Royalty and Growing Management Agreement to be completed within 30 days


Roto-Gro International Limited (“ASX:RGI”, “RotoGro” or the “Company”) is pleased to announce that it has executed a Memorandum of Understanding with Rotary Garden Systems SDN BHD (hereinafter referred to as “RGS”) to enter into formal negotiations for a Technology, Royalty and Growing Management Agreement (the “Agreement”) for state-of-the-art lawful cannabis cultivation facilities located in Malaysia and Thailand.


Overview: The Malaysian Cannabis Cultivation Project. 

RotoGro and RGS (collectively, the “Parties”) intend to execute the Agreement, pursuant to which the Parties will endeavour to secure a license from the Malaysian and Thailand governments to cultivate, process, sell, and export lawful cannabis. RotoGro and RGS intend to acquire and buildout state-of-the-art lawful cannabis cultivation facilities outfitted with RotoGro’s patented Rotational Hydroponic Garden Systems and its supporting proprietary technology. The state-of-theart facilities will be the first of their kind in Asia and development of these facilities is consistent with RotoGro’s efforts to gain a foothold in the Asian lawful cannabis cultivation market for the lawful sale and export of cannabis world-wide.


RGS will provide the capital expenditure deemed necessary by the Parties to fund the proposed new business venture, while RotoGro will sell RGS its patented and proprietary Rotational Hydroponic Garden Systems together with its operational expertise to manage the lawful cannabis cultivation facilities in Malaysia and Thailand. This venture is consistent with the Company’s strategy to move from capital intensive projects to joint ventures with cultivation partners in the lawful cannabis space, sustaining technology sales and a clear path to operational revenue.


RotoGro’s CEO, Mr. Adam Clode, states, “We are very excited with the prospect of gaining a foothold in the Asian lawful cannabis space. This exciting opportunity with RSG is the first step towards meeting this objective with a group familiar to the Company who are well-funded and have been among our top 10 shareholders for a significant period. RGS’s understanding of the Malaysian and Thailand lawful cannabis marketplace, coupled with RotoGro’s patented and proprietary technology, growing management expertise, and global lawful cannabis cultivation outlook, is a thrilling prospect. The Company is continuing its quest to provide sustained revenues from ownership and collaborations in the cultivation of lawful cannabis in order to drive shareholder value.”


Click here to view the full announcement

OPERATIONAL UPDATE

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RotoGro Operational Update 

ASX Announcement 24 June 2019 


Roto-Gro International Limited (“ASX:RGI”, “RotoGro” or the “Company”) is pleased to provide the following operational update.


Corporate Overview 

The Company has positioned its focus to the cultivation of: 

  • lawful cannabis, through the acquisition of Supra THC Service Inc. (subject to licensing approval), and by pursuing joint ventures with companies holding cultivation licenses for lawful cannabis; and 
  • perishable foods, by way of two collaborative ventures in the retail food space


Our patented and proprietary RotoGro Hydroponic Garden Systems deliver proven yield advantages, reduced operational costs and enhanced product consistency (as announced on 12 November 2018). Establishing our first cultivation facility for lawful cannabis to take full advantage of these comparative advantages is a focal point for the Company. At the same time, the Company continues to pursue revenue from the sale of its technology to third-party growers, our perishable food joint ventures, and from our agricultural service offerings.


With a focus on the cultivation of lawful cannabis in Canada and other lawful jurisdictions, the Company is actively pursuing a dual listing on the Canadian Securities Exchange (the “CSE”). In this regard, the Company has retained Wildeboer Dellelce LLP, a prominent Canadian law firm recognized as a leader in the cannabis space, to lead the dual listing to compliment the Company's current listings on the ASX and the Frankfurt Stock Exchange. 


The CSE listing is planned as a non-offering compliance listing, will provide exposure to the largest capital market for cannabis-focused companies globally and facilitate valuation comparisons amongst the Company’s Canadian-listed peers.


The Company is in the process of formalising Board and Management changes to position the Company to execute on the current strategic objectives and planned growth. The Management changes are internal promotions which solidify the executive team and provide autonomy to execute on the Board-approved strategy


Production and Sales Pipeline 

The Company continues to work with new and existing clients, providing design and fit-out solutions for their lawful cannabis and perishable food growing facilities. These services are being delivered across North America, Europe and Australasia, where the Company works with listed and unlisted lawful cannabis licensees and license applicants. The Company’s services are being offered in connection with the facility designs of both licensees and license applicants, and their license applications or within the parameters of their approved licenses. The Company's sales pipeline continues to grow, and customer leads remain strong, with prospective customers at varying stages of development. The Company will announce any material agreements in accordance with its continuous disclosure obligations.


The Company is currently working on two design and technology proposals with an ongoing growing management contract and incentivised profit share in Canada and the United States respectively. In addition, the Company has recently begun working with Siksika Herbz GP Inc. (“Siksika”) located in the province of Alberta, Canada, which is in partnership with Frozen Penguin Medical Industries Inc. (“Frozen Penguin”). The first phase of the design of Siksika’s facility provides for 150 RotoGro Hydroponic Garden Systems. RotoGro’s Design and Sales Teams are currently designing Siksika’s floor plans in accordance with Health Canada standards and applicable building codes. Although the above leads are highly prospective, it is not guaranteed these proposals will convert into sales orders and growing management contracts. 


Manufacturing of our RotoGro Hydroponic Garden Systems in fulfilment of the $600,000 purchase order from Frozen Penguin (as announced on 8 April 2019) is nearing completion with delivery scheduled for early Q3 CY2019. In addition, the Company has installed and commissioned a second grow room of twenty-four (24) units for Miracle Valley Medical Alternatives M.V.M.A. Ltd. in connection with its $2.3M purchase order (as announced on 4 April 2018).


RotoGro’s wholly owned subsidiary Global Fertigation Solutions Inc. (“GFS”) is progressing well with delivery and installation of The Grove’s Fertigation System (purchase order announced on 29 March 2019) and Polaris (purchase order announced on 26 February 2019) to be undertaken in the next four weeks. The sales pipeline for GFS remains strong and although highly prospective, the Company will update the market on these as they progress and if they eventuate into purchase orders.


Click here to view the full announcement

QUARTERLY

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Quarterly Activities Report for the Period Ended March 31, 2019 

ASX Announcement 1 May 2019 


Roto-Gro International Limited (“ASX:RGI”, “RotoGro” or the “Company”) is pleased to provide its quarterly activities report for the period ended March 31, 2019.


Quarter Highlights 

  • The Company is actively completing its application for a dual listing on the Canadian Securities Exchange 
  • The Company delivered and installed twenty-four (24) RotoGro Systems to Miracle Valley comprising part of its $2.3M purchase order 
  • Post quarter end the Company secured a AUD$600,000.00 order with Frozen Penguin 
  • Global Fertigation Solutions continues to perform admirably, securing more than AUD$500,000.00 of new sales during the quarter 
  • The Company completed its state-of-the-art laboratory located at the Company’s Research and Development Facility in Caledon, Ontario, Canada 
  • RotoGro’s engineering team are currently working on a general arrangement design for the pilot facility of Freshero located in New South Wales, Australia


Operational Overview 

The Company has positioned itself as an emerging cultivator of: 

  • high value crops in the lawful cannabis space (subject to licensing approval), through the acquisition of Supra THC Service Inc.; and 
  • perishable foods, by way of two partnerships in the retail food space. 


RotoGro’s patented, patent-pending and proprietary Rotational Hydroponic Garden System (the “RotoGro System”) provides cultivators a competitive advantage, delivering higher yields at lower operating costs. Cultivation remains the primary business sector target for the Company, however as the Company’s business evolves, the Company will continue to pursue revenue from the sale of technology to third-party growers, perishable food joint ventures and agricultural services.


Focussing on the cultivation of lawful cannabis in Canada, the Company is actively completing its application for a dual listing on the Canadian Securities Exchange to complement its existing listings on the ASX and the Frankfurt Stock Exchange.


During the quarter, the Company completed the acquisition of Roto-Gro Inc and its controlled entities: Roto-Gro IP Inc (which holds all intellectual property including patents & patents pending in the stackable rotary hydroponic garden space, and proprietary iGrow® growing management software) and Roto-Gro Technologies Inc (which owns the stock, plant & equipment to manufacture the Roto-Gro systems).


Post quarter end the Company received firm commitments from institutional and sophisticated investors for an oversubscribed $3.6M capital raise.


Production and Sales Pipeline 

The Company continues to work with prospective and existing clients, providing design and fit-out solutions for lawful cannabis and perishable food growing facilities. These services are delivered across North America, Europe and Australasia, where the Company works with listed and unlisted lawful cannabis license aspirants. The Company provides consulting services to existing and aspiring licensees in connection with their facility designs and their lawful cannabis license applications.


During the quarter, the Company delivered and installed twenty-four (24) RotoGro Systems to Miracle Valley Medical Alternatives M.V.M.A. Ltd. (“Miracle Valley”) for its first grow room, comprising part of its $2.3M purchase order (please refer to the Company’s announcement dated 4 April 2018). In addition, following the quarter end the Company secured a AUD$600,000.00 order with Frozen Penguin Medical Industries Inc. (“Frozen Penguin”) as announced on 8 April 2019.


RotoGro’s wholly-owned subsidiary, Global Fertigation Solutions (“GFS”), continues to perform admirably, securing more than AUD$500,000.00 of new sales during the quarter from both internal and external sales leads. The GFS and RotoGro sales teams are collaborating on sales leads, successfully securing technology and fertigation sales with Frozen Penguin.


The Company's sales pipeline across both technology and agricultural services is on the rise and leads remain strong, with prospective customers at varying stages of development.


Click here to view the full announcement

BOARD

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Corporate Directory

MANAGING DIRECTOR

Michael Carli

Mr. Carli has been a partner with the law firm Rigobon Carli (which he co-founded) since 1989. He has significant expertise in corporate governance, commercial finance and intellectual property. Mr. Carli graduated from the University of Western Ontario Law School with his Juris Doctor degree in 1987. He is a member of the Intellectual Property Institute of Canada and a member of the American Bar Association (Intellectual Property Section).

NON-EXECUTIVE DIRECTOR

Steve Brockhurst

Mr Brockhurst has fifteen years of experience in the finance and corporate advisory industry and has been responsible for the preparation of the due diligence process and prospectuses on a number of initial public offers. His experience includes corporate and capital structuring, corporate advisory and company secretarial services, capital raising, ASX and ASIC compliance requirements.

Mr Brockhurst has served on various boards and has acted as a company secretary for numerous ASX listed and unlisted companies.

NON-EXECUTIVE DIRECTOR

David Palumbo

Mr Palumbo has ten years of experience in accounting and financial reporting of ASX listed and unlisted companies, which includes five years as an external auditor. Mr Palumbo provides corporate advisory and financial management advice and specialises in corporate compliance, statutory reporting and financial accounting services.

He has also been involved in the listing of several junior exploration companies on the ASX.

DIRECTOR AND DIRECTOR OF MANUFACTURING

Michael Slater

The former President and major shareholder of a specialised manufacturing firm in Canada, Michael brings over 50 years of international manufacturing experience to Roto-Gro. Michael has untaken projects in Europe, the former Eastern Europe, Japan, China, Australasia, and North America.

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VIDEOS

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