Roto-Gro International Limited (ASX: RGO) has reported the delivery of a $600,000 order of their patented Hydroponic Rotational systems to Canadian cannabis company Oakum Cannabis. 

The global produce market is expected to grow from $280 billion in 2017 to $295 billion in 2022. Increasing fruit and vegetable consumption is driven by a growing middle class in China, Africa and the Middle East where higher yields can be achieved by more efficient land management. 

Designed to maximise production space via their unique cylindrical design, RotoGro’s Hydroponic Rotational Garden Systems have been reported to deliver yield increases of up to 35% compared to traditional hydroponics.

“The delivery of our Rotational Garden Systems to Oakum is an exciting time for both companies,” said RotoGro CEO Adam Clode. 

“Oakum’s research and testing of the RotoGro Garden System over the past 12 months combined with the collaboration of RotoGro’s research and development team supports the successful implementation of Oakum’s first phase to consistently achieve yields of over 7lbs of dry flower per rotational garden per harvest.” 

The RotoGro garden systems have proven popular amongst urban farming initiatives. 

The company is expected to deliver further machines to Freshero in the coming months under a revenue-based royalty scheme on all produce sold. Further activity in Canada has also been strengthened via a strategic partnership with perishable food producer Gibio which will be commencing construction of their first hydroponic facility in Q4 2019 and a further 10 facilities expected to be rolled out over the next 5 years. 

Beyond their production of the RotoGro Garden Systems, the company has entered into an agreement to purchase Supra THC Services Inc. which holds a Dealer’s License issued by Health Canada for lawful cannabis.