Australian-based lawful cannabis and perishable food specialist Roto-Gro International Limited (ASX:RGI) has executed a Memorandum of Understanding (MoU) that could lead to the development of lawful cannabis facilities in Malaysia and Thailand.
RotoGro’s CEO, Adam Clode, said the MoU with Malaysia’s Rotary Garden Systems SDN BHD (RGS) will see the companies enter into formal negotiations for a Technology, Royalty and Growing Management Agreement for state-of-the-art lawful cannabis cultivation facilities.
He said RotoGro and RGS intend to execute the Agreement, pursuant to which the parties will endeavour to secure a license from the Malaysian and Thailand governments to cultivate, process, sell, and export lawful cannabis.
Mr Clode said RotoGro and RGS intend to acquire and build- out state-of-the-art lawful cannabis cultivation facilities outfitted with RotoGro’s patented Rotational Hydroponic Garden Systems and its supporting proprietary technology.
He said the state-of-the- art facilities will be the first of their kind in Asia and development of these facilities is consistent with RotoGro’s efforts to gain a foothold in the Asian lawful cannabis cultivation market for the lawful sale and export of cannabis world-wide.
RGS will provide the capital expenditure deemed necessary by the parties to fund the proposed new business venture, while RotoGro will sell RGS its patented and proprietary Rotational Hydroponic Garden Systems together with its operational expertise to manage the lawful cannabis cultivation facilities in Malaysia and Thailand.
We are very excited with the prospect of gaining a foothold in the Asian lawful cannabis space,” Mr Clode said.
“This exciting opportunity with RSG is the first step towards meeting this objective with a group familiar to the company who are well-funded and have been among our top 10 shareholders for a significant period.
“RGS’s understanding of the Malaysian and Thailand lawful cannabis marketplace, coupled with RotoGro’s patented and proprietary technology, growing management expertise, and global lawful cannabis cultivation outlook, is a thrilling prospect.
“The Company is continuing its quest to provide sustained revenues from ownership and collaborations in the cultivation of lawful cannabis in order to drive shareholder value.”
