Communicators

Freshero Trials and Collaboration Update

-                 Growing trials commenced on November 1, 2018 at the Company’s dedicated research and development grow rooms in Caledon, Ontario, Canada

-                 The initial trials have focused on leafy greens, with trials for fruiting varieties to commence in Q2 2019

-                 RotoGro’s Botanist and Freshero’s Agronomist continue to collaborate on data accumulation including crop yields, density and economics for a variety of perishables (produce)

-                 RotoGro and Freshero are currently designing a proposed pilot facility in New South Wales, Australia, with first machines for this facility to be delivered end Q2 2019

-                 The leafy green trials are demonstrating an opportunity to fast-track commercialisation with the fully-automated growing, harvesting and packing system being envisaged

-                 The ongoing trials continue to reflect the opportunity for Freshero and RotoGro to take a successful Urban Farming position in an environmentally sustainable and responsible operation, located almost anywhere in the world

Roto-Gro World Wide (Canada) Inc., a wholly-owned subsidiary of Roto-Gro International Limited (“ASX:RGI”, “RotoGro” or the “Company”), is pleased to provide an update regarding the growing trials being jointly conducted by Freshero Pty Ltd (“Freshero”) and the Company, and the Heads of Agreement pertaining to a joint venture between the parties involving the purchase and sale of Roto-Gro rotational hydroponic garden systems and services (the “HOA”).

Freshero is an aspiring organic fresh produce grower with long standing relationships across the wholesale, retail and food service space in Australasia, Southeast Asia and the Middle East.  Led by its CEO, Mr. Tony Mahoney, Freshero is in the process of establishing indoor urban vertical farming facilities for fresh organic produce in close proximity to retail distribution centres.

The HOA and the future joint venture agreement will leverage RotoGro’s patented and proprietary rotational hydroponic garden systems, crop management fertigation hardware and software systems as part of Freshero’s urban vertical farming offering.  RotoGro will supply the capital equipment, software and management time at agreed rates, pursuant to a joint venture agreement and, in return, Freshero will commit to exclusive long-term service agreements with RotoGro for the installation of new, sustainable, protected farming facilities and ongoing operational management and maintenance.  In addition, Freshero agrees to pay RotoGro a royalty based on a share of crop sales revenue per growing facility, to be defined in the joint venture agreement.

The growing trials contemplated in the HOA commenced on November 1, 2018 at the Company’s dedicated research and development grow rooms in Caledon, Ontario, Canada. The initial trials have focused on leafy greens, with trials for fruiting varieties to commence in Q2 2019. RotoGro’s Botanist and Freshero’s Agronomist continue to collaborate on accumulating data pertaining to crop yields, density and economics for a variety of perishables (produce). RotoGro and Freshero are currently designing a proposed pilot facility in New South Wales, Australia, with first machines for this facility to be delivered in Q2 2019.

Freshero’s Chief Executive Officer, Mr. Tony Mahoney stated, “We are very pleased with the trials to date proving the sustainability, traceability and transparency of the RotoGro system from seed to sale. The leafy green trials are demonstrating an opportunity to move to commercialization quite quickly and with the fully automated growing, harvesting and packing system being envisaged, we will be competitive in the market place and possibly unique in being fully automated from seed to market.

The range of produce is potentially greater than any other competing system, transgressing from leafy green produce to a range of fruiting produce. The opportunity for the fruiting crops is particularly significant.  As a result, the trials will be extended for an additional 3 months to the end of Q2 2019 to allow us to quantify the results in the additional range of varieties being trialled. The ongoing trials continue to reflect the opportunity for Freshero and RotoGro to take a successful Urban Farming position in an environmentally sustainable and responsible operation, located almost anywhere in the world.”

RotoGro Managing Director, Michael Carli states, “We are encouraged by the results of the current growing trials and our ongoing collaboration with Freshero. The frequent interaction of our respective company’s knowledgeable personnel inspires further innovation. The ability to extend the trials to accommodate additional varieties of produce broadens the size and scope of our proposed facilities and global market penetration. We are also very excited about installing our first pilot facility in Australia and further defining the terms of our proposed joint venture with Freshero.”

--ENDS--

For more information please contact

Roto-Gro International    

Adam Clode     

General Manager     

adam.clode@rotogro.com  

Investment Enquiries

Terry Gardiner 

Barclay Wells Limited

terry@barclaywells.com

+61 (0)8 6380 3333

Investment Enquiries

James Titcombe

Emerald Capital Australia

jtitcombe@emeraldcapital.com.au

+61 (0)481 055  924

About Roto-Gro International Limited

Roto-Gro International Limited (“RotoGro”) is an Australian-based company with global operations focused on the cultivation of lawful cannabis and perishable food (produce) which take advantage of its licensed, proprietary, patented, and patents-pending technology in the stackable rotary hydroponic garden space.  RotoGro holds worldwide exclusive licenses for lawful medicinal and recreational cannabis markets and has acquired the technology for all other purposes including pharmaceuticals, nutraceuticals and perishable foods.

The Company has collaborated with Gibio Inc. and Freshero Pty Ltd. These ventures leverage RotoGro’s patented rotational hydroponic garden systems, crop management fertigation hardware and proprietary software systems to produce greater yields and lower operating costs.  In addition, the Company has entered into a Share Purchase Agreement to acquire all the issued and outstanding shares in the capital stock of Supra THC Services Inc. which holds a Dealer’s License issued by Health Canada for lawful cannabis.

RotoGro’s wholly-owned subsidiary, Global Fertigation Solutions Inc. (“GFS”), provides a patent-pending specialized business line for water treatment and nutrient management in the viticulture, perishable foods and lawful cannabis space.  GFS has successfully provided design solutions, installations and ongoing service contracts for licensed lawful cannabis facilities in the State of Nevada, USA and is embarking on expanding this offering globally.

The Company continues its focus on expanding into industry synergistic opportunities; exploring strategic partnerships and complimentary acquisitions in related markets which include, perishable food (produce) partnerships, lawful cannabis license ownership, growing management services, industry leading nutrients, emerging tissue culture (micropropagation) expertise and other supporting faculties of hydroponic growing.