Ann: RotoGro to Acquire Hanson Fertigation, page-3

The acquisition of a fertigation company on 1st look would not seem to be such a big thing, however it is the backbone of modern hydroponics. This gives Roto-Gro the complete package to take clients from start to finish. Having a good fertigation system is paramount to the whole growing process.

Hanson's certainly picked an opportune time to take shares in RGI instead of cash. Just when our sp is at a recent low
Having said that, the price based on 3 x last yrs EBITDA does seem attractive. It will only take 3 years at current earnings rate to repay the cost. Somehow I think RGI will have lots of work for Hansons (GFS) so the return on capital will be even quicker.

Also interesting a US private company is willing to take shares in RGI as payment. They must have a lot of faith in RGI's future! and no doubt have seen the potential order book.

Not much is published about fertigation on the net, from my research this is how I see a fertigation system working.

As per Amfil's customer's plans posted on this forum a while back & designed by Roto-Gro. The grow rooms are fairly small to protect from disease & crop failures. Typically you might have a grow room of 1,000 sq ft with 24 machines in it - 6 stacks of 4 machines. The plants in each room would be at a similar growth stage. When the HID lamps are on in one room the adjacent room has them off, filtered fans would control the heat exchange between the 2 rooms. Centralised pumps & piping will deliver nutrients, water and ph balancers as required to the grow rooms & machines. Waste would also be piped back out for treatment so it can be reused or safely discarded.

This level of automation combined with Roto-Gro's remote monitoring also means minimal human entry/exit to the grow rooms minimising the risk of disease which has ruined many MJ crops over the years.

The fertigation system has to be designed into the build-out at the start, covering the layout/sizes of the pumps, pipes, electrics, filters, and control of waste. This is critical for ensuring crop success & minimising human errors with fertilizer mixing etc etc.

Having a credentialed & experienced fertigation company gives Roto-Gro the whole package to take their clients from a drawing board to being a successful cultivator. Bigger experienced cultivators would realise the importance of such systems. This puts RGI "up there" to any potential client in this relatively new & rapidly expanding MJ business. RGI have over 10 years experience in the growing machines, now fertigation since 1957.