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User-65225

04/30/17 10:52 PM

#16273 RE: Martin11 #16266

Research and Development
During its first quarter, the Company commissioned a series of medical cannabis
trials which validate the competitive advantages of the Roto-Gro System over
traditional flatbed hydroponic growing systems. The trials replicated growing
conditions and environments for the same plant species in adjacent rooms
involving the same input parameters including building space, power consumption
and labour.

Most notably the trials highlighted that the Roto-Gro unit consistently yields more
than 3 pounds of medical cannabis per 1,000 watts of energy for lighting. This
amount is twice the industry average of 1.5 pounds of medical cannabis per 1,000
watts of energy for lighting in traditional flatbed hydroponic growing systems.

The trials also confirmed that the Roto-Gro growing system offers significant
savings for operational costs including rent, electric power and labour charges.
Under these conditions the cost of a Roto-Gro unit may be recouped in a single
grow cycle, resulting in significant cost savings and financial benefits for licensed
medical cannabis producers.

In the next quarter, the Company will commence its deployment of several RotoGro
units to the Company’s strategic partners at universities and research
institutions throughout North America and Australia.


https://newswire.iguana2.com/af5f4d73c1a54a33/rgi.asx/6A818671/RGI_March_2017_Quarterly_Report_and_Appendix_4C