Verity Greens (who the company announced the recent $10M purchase order), are looking to rollout the 710 Rotational Garden Systems in 2021
At least with this we only need local government planning approvals which should be much quicker to get than cannabis growing licences.
Under the agreement with Verity, they need to nominate a country for their first facility by 30/4/2021 and the town/city by 30/9/2021 with purchase of 624 of the 710 Rotational Garden Systems by 31/12/2021.
Hopefully things move quicker than that as per the key note from RGI's announcement saying they are looking to rollout the growing units in 2021.
Hopefully we also get plenty of updates on the progress in regards to this first growing facility during the course of 2021.
A single growing facility won't bring large recurring revenue but it would provide proof of concept with hopefully a number of other facilities and expansion of the first facility to follow resulting in ongoing revenue from the sale of the growing units and a growing (pardon the pun) recurrent revenue base.
On a separate note, it is interesting that since the Verity deal was announced the About Roto-Gro International section at the end of their announcements have changed focus with the removal of any references to any specific companies/deals to just the Verity deal. More interesting is the change of wording relating to a cannabis licence, as mentioned there is no longer a direct reference to CanniFarms but rather they state:
RotoGro maintains its focus on expansion into industry synergistic opportunities and exploring strategic partnerships in the perishable food (produce) space and the lawful cannabis space, while sourcing lawful cannabis cultivation license ownership opportunities, engaging in growing management services contracts, and providing the agricultural industry with industry-leading nutrient management systems and supporting, automated technology.
I have sought clarification on the change in wording from the company but so far have been met with silence in regards to this.
RGI Price at posting:
7.1¢ Sentiment: Hold Disclosure: Held
