Ann: RotoGro Partners with Strategic Organic Produce Group, page-24

I'm some what surprised at the luke warm reception the market gave this announcement.



As I said in a previous post, Gibio are using the equivalent of 800 machines ($8m in sales) for one line - Cos lettuce, in one city, expecting to expand to 10 such facilities over the next 5 years. Quebec city only has a population of about 800,000.



Freshero aim to do the same thing for multiple cities across Australia, NZ & SE Asia & I very much doubt it'll be just for one line. Sydney alone has a population of 4.6m, 5 times that of Quebec, even Adelaide has a population of 1.2m, then there is the rest of Australia, NZ, SE Asia. So how many multiples of 800 machines are they going to need to supply say 10 lines to their target customers? The answer is mind boggling, and remember they have a track record of achieving, eg growing sales from $12m to over $400m. Nutrano was founded (by Tony Mahoney) in November 2015, as you can see it didn't take him very long to build that company up to it's present size, admittedly partly by acquisition.



In the last Qtly RGI said: "The Company completed grow cycles of cherry tomatoes, cabbage, capsicums, lettuce, herbs and chili peppers " You don't have to be Einstein to work out this would be for Gibio and/or Freshero.



Many would perceive there is no hurry to invest, as both these contracts probably won’t reap rewards for about 6 months. Remember they are still looking at a MJ acquisition and like the Freshero deal, this could be announced any day out of the blue. Such an announcement could just be what ignites this thinly traded stock.