RGI 0.00% 22.0¢ roto-gro international limited

Ann: Roto-Gro Tech Signs Lease on New Facility, page-2

  1. 4,051 Posts.
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    In the prospectus, they said RotoGro Tech had the capacity to make about 30-40 units per week. 30 x 52 = 1560 per year
    The new leased premises will allow 3 times the production capacity, so about 4500 units pa
    They obviously think they need to make more than 1500 per year.

    They would have a very good idea as to what future orders they can expect based on the pipeline of customers they are helping with the set up. If a premise is set up for roto-gro units, there isn't anything else that is similar that would have the same set up, so these customers are pretty well locked in. Of course this would be a minimum, other customers can easily just order without the set up help.

    Roto-Gro Tech is not part of the RGI group of companies, Michael Carli is a director of it, they have agreements with RGI, however I'm not sure who actually owns it. I'd presume RGI will only be up for part of the rent & Roto-Gro Tech picking up the majority.
 
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