Cannabis tech company, RotoGro World Wide (ASX:RGI), has penned a binding letter of intent (LOI) with organic perishable foods grower, Gibio Inc.
The LOI enables RGI to subscribe for up to 49 per cent equity participation in Gibio and includes a 20-year exclusive manufacturing, technology and service contract for all rotational garden systems required for Gibio’s perishable food production facilities.
Gibio is located and incorporated in St Apolinaire, Quebec, Canada. Its mission is to develop environmentally responsible local farms which defy traditional growing seasons, enabling sustainable, socially responsible and traceable organic produce all year round.
This LOI is the culmination of 12 months of collaboration — Gibio and RGI have been working together to trial, test and customise the RotoGro Rotary Hydroponic Garden System with Gibio’s growing know-how and bespoke substrate technology.
Building, owning and operating perishable farms led by the tech of both companies will ensure produce is grown with maximum efficiency, minimal water, and without pesticides or herbicides.
Gibio will proceed with the first 80,000 square foot flagship facility, aiming to roll out an additional 10 facilities over the next five years.
RGI’s equity interest in Gibio’s global growing facilities provides considerable depth to its second vertical of growing management and growing facility ownership.
It’s worth noting here that this is an early stage play and investors should seek professional financial advice if considering this company for their portfolio.