This comes by way of a strategic deal with large retail and wholesale agricultural supplier Amir Marketing and Investing in Agriculture Ltd (TLV:AMRK) to promote and sell the RZTO technology in Israel.
The agreement includes a Buy Now – Pay Later component aimed at lowering the barriers of entry for farmers and expediting product uptake.
Plan gaining traction[hhmc]
This payment plan is already gaining traction with the first sale valued at $14,300 for an RZTO system. The system, which was sold to a peonies grower in North Israel, was recently installed.
The company plans to adapt this type of sales plan and roll it out in other countries if it is successful in Israel.
Roots executive chairman and chief executive officer Boaz Wachtel said: “This strategic agreement is a significant milestone for the company as it provides a major sales channel into the Israeli market, as well as visibility for our solutions in over 23 retail stores throughout the country at little expense.
“The payment agreement we have struck with Amir will make our technology much more accessible to farmers and other growers throughout Israel as the payment terms align well with farmers receivable terms.
“The agreement further validates Root's RZTO technology after passing scrutiny by Amir experts.”
Roots is seeing an increasing demand for its RZTO technology in Israel and multiple international markets.
It has set up an in-country supply chain to fulfil any orders from potential customers quickly and efficiently.
Wachtel said: “Roots is well positioned with a strong supply chain and has number of initiatives underway to drive sales domestically where RZTO is being well-received and accepted.
“As sale materialise through Amir, we will update shareholders on progress. If we can achieve success in Israel using Buy Now – Pay Later terms, we plan to adapt this type of plan in other countries.”
Roots and Amir management following the execution of the strategic agreement.
Spread payments up to 24 months[hhmc]
Under the agreement, Amir will exclusively promote its RZTO technology in its 23 stores and offer the Buy Now – Pay Later plan, which will allow consumers to spread payments up to 24 months, with flexible payment structures.
The sales and marketing agreement will run for one year, with the option to extend if agreed by both parties.
Roots will pay a fixed commission to Amir for services rendered. The amount paid is confidential.
Although Amir is not required to meet any minimum purchase requirements, Roots is confident the agreement will underpin further sales of its RZTO technology.