Hydroponics technology company Roto-Gro International has completed a $3.6 million share placement, with the funds set to fast-track expansion of its research and development facility in Canada.
Under the oversubscribed placement, shares were issued at 21.5 cents per share, a 10.4 per cent discount on its previous closing price of 24 cents each.
The placement was jointly managed by Patersons Securities and Baker Young Stockbrokers.
In a statement, Roto-Gro said the capital raised will build three additional perishable food grow rooms in the company’s R&D facility in Ontario, Canada, as well as to complete the engineering design of the automated harvesting for the company’s perishable food hydroponic gardens.
Managing director Michael Carli said the level of interest and support from new and existing investors was a testament to the unique opportunity Roto presents in revolutionising the future of agriculture.
“Our aspirations to be a leading lawful cannabis and perishable food grower, drawing on our patented and patents-pending technology and proprietary growing management software, sets us apart from all other methods of growing,” he said.
Roto-Gro is based in Canada with its Australian operations headquartered in Perth.
It listed on the ASX in February 2017, after it completed a $3.6 million initial public offering.
The company has a major focus on the medical cannabis sector; however, it also caters its products for all other hydroponic purposes.
Shares in Roto were down 8.33 per cent to trade at 22 cents each at 3.20pmAEDT.