() has signed a letter of intent (LOI) with smart technology provider, Humboldt CCTV,  to distribute the Root Zone heat exchange device kits in Northern California.

The kits comprise of the company’s heat exchange probe and related parts of the Root Zone Temperature Optimisation (RZTO) technology.

Roots’ patented heat exchange probe is designed to be inserted into the tops of plant pots and grow bags to simplify the working procedures of farmers and lower the installation cost associated with Roots’ RZTO technology.

Important milestone for Roots

Humboldt is an established family-owned business that specialises in smart agricultural technology and wireless connectivity solutions for farmers.

The group has a longstanding and established customer base, as well as a team of engineers and sales representatives covering the Californian market.

Roots Executive chairman and CEO Boaz Wachtel said: “This agreement is an important milestone for Roots and the first step in creating a permanent beachhead for our technology in North America.

“Humboldt have witnessed firsthand the benefits of our technology and will be instrumental as the company continues its international expansion.”

LOI to be expanded to a binding agreement

Under the LOI, Roots will receive licensing fees for technology usage for each system sold and a fixed price per number of related parts bought by Humboldt for system installations.

Humboldt will initially target the Lake, Mendocino and Humboldt counties.

Upon meeting certain milestones, both parties aim to expand the LOI to a binding agreement which would cover the remainder of California and other states in the USA.

Roots anticipate that a binding agreement will be reached in the coming weeks.

40% of all organic production in the USA

California is a large market opportunity for Roots and its technology.  It is the top agricultural producing state in the USA.

In 2018, California’s farms and ranches generated almost US$50 billion in revenue for output.

California has over 69,400 individual farms and ranches that contribute 40% of all organic production in the USA.

The agreement follows four previously successful RZTO installations in the state.

These were all undertaken in various weather conditions and over structure types and provided higher yields, shortened growing cycles and production security to growers.

First sale expected to materialise soon

Wachtel added: “California represents a huge agricultural sector and importantly, a rapidly growing cannabis market.

“Roots has extensive experience in providing solutions to growers that provide higher yields, shorter growing cycles and production security so we have no doubt our products will be well received.

“We have been working with Humboldt, part of the Tim Blake team, for the last two years and during this time they have conducted extensive due diligence on our technology and our company.

“This agreement is validation of the group’s confidence in the near term potential for RZTO in North America.

“Further, partnering with an established distributor in the USA will allow us to build our international footprint and deliver another competitive advantage at a time of restricted travel.

“We expect first sales will materialise in the near term.”