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Egold

06/21/18 7:15 AM

#150072 RE: JMoriarty #149754

Lets talk GRO3, rotogro and the Hanson acquisition.

First for those not familiar with rotogro they make a cylindrical hydroponic growing system for plant based soil less growing. You can find there sales presentations below.

https://www.asx.com.au/asxpdf/20180601/pdf/43vh42dqvclxtl.pdf

GRO3 For those not familiar with this sub of AMFE they produce the EcoPro3
water and air purification system. This is off there website
Benefits of the GRO3 EcoPRO3 system:

· Improved health and wellbeing of plants leading to increased potency and yield sizes
· Eliminates 99.9% of bacteria, mold and algae from all areas of the facility
· Reduces/Eliminates chemical usages for cleaning/sanitation
· Reduces/Eliminates the requirement for pesticide use
· Controls pests and eliminates odours
· Controls harmful pests such as aphids, whiteflies, spider mites, etc.
· Treatment of hydroponic reservoirs leaving them nutrient rich and oxygenated
· Eliminates 99.9% of bacteria, mold and algae from all areas of the facility
· Sanitizes all liquid, air and surface areas to ensure adherence to regulations
· Eliminates odours


For those not familiar with the term fertigation This comes off wikipedia

Fertigation is the injection of fertilizers, soil amendments, and other water-soluble products into an irrigation system. Fertigation is related to chemigation, the injection of chemicals into an irrigation system.

Here is an article about fertigation for hydroponicgrowing

https://www.greenhousecanada.com/structures-equipment/water-and-irrigation/fertigation-applications-for-hydroponics-30622



Now that everyone knows the terms lets talk about the joint venture between rotogro and AMFE's GRO3

Dates are taken off RGI filling from the ASX

On May 1st 2017 Rotogro signs a heads agreement with amfe forming a joint venture to see GRO3 systems with rotogro systems. This can be found on page 3 from the link below

https://www.asx.com.au/asxpdf/20170831/pdf/43lycv4g7sm7c7.pdf

What we know so far 9/28/17 AMFE orders 100 rotogro units link below

https://www.asx.com.au/asxpdf/20170928/pdf/43mq0zyz8cb7j1.pdf

In the rotogro 12/17 10Q AMFE orders another 216 units link below

https://www.asx.com.au/asxpdf/20180201/pdf/43r7zz02lt86dv.pdf

On May 17 2018 Rotogro acquires Hanson Fertigation Link below

https://www.asx.com.au/asxpdf/20180517/pdf/43v30z3stcqb94.pdf

On May 22 2018 rotogro signs an agreement for upto 49% of Gibio a hydroponic organic food grower. Link is below.

https://www.asx.com.au/asxpdf/20180522/pdf/43v6cdb42s6y3m.pdf

Now we know what all 3 technologies do.

DISCUSSION

I've read some posts that said with rotogro's purchase of Hanson they do not need GRO3. I also heard some callers to rotogro were told that GRO3 was a air purifier. People purchasing rotogro systems would have a choice between Hanson now rotogro fertigation or Gr03.

This only pertains for medical cannabis which has a higher standard for production that recreational might have. I don't think anyone really knows that yet though.

I have no idea what the requirements are for the physical building thats needed for the cultivation of medical cannabis.

Does it need to be a clean room

Do employees need to wear clean room type suits and masks to prevent bacteria and insects from entering the grow rooms.

What type of air filtration systems do they need.

The ozone in the fertigation system only does the recycled water.

Gro3 Ecopro3 does both air and recycled fertigation water
Eliminates 99.9% of bacteria, mold and algae from all areas of the facility

Sanitizes all liquid, air and surface areas to ensure adherence to regulations

Were talking medical Cannabis not recreational or hydropnic growing of food. To me I would want to use a system that did both however I'm sure there is a considerable cost difference and this is why rotogro might be offering a choice. There are many ways to bring bacteria, insects into grow room environment. perhaps the added cleaning costs involved of keeping the grow room clean is reduced with Gro3 product because of the air filtration. Perhaps as growing food with hydroponics becomes more mainstream these growers want to use systems that will be the safest for human consumption. To me that would be the Gro3 system.

I would not be bothered by Rotogro's Hanson acquisition I think AMFE will sell plenty Gro3 systems for commercial use.

I also think the different arms of Snakes & Lattes is going to be way way more profitable that GRO3 ever could be.