Roots Sustainable Agricultural Technologies Limited reported that Netafim Ltd. has purchased for USD 5,000 the first `Super Mini' RZTO system for a pilot aiming to validate its efficacy at a blueberry farm in Southern Turkey. The RZTO system will be tested using Roots' proprietary Heat Exchange Probes (HEP) and heat pump on at a reputable pot-based blueberry growing farm in Antalya Turkey. The strategic sale allows Roots to leverage its already field proven technology referencing Netafim's implacable reputation and global marketing channels.

The Company signed a binding Letter of Intent (LOI) with no-shop for a period of 12 months whereby a pilot study will be conducted by Netafim in Turkey. During the no shop period ROOTS is not allowed to engage with Netafim's competitors in Turkey and 5 Asian countries. Following a successful pilot in Turkey, and subject to engagement under a definitive agreement, Netafim will be granted exclusivity under terms to be agreed, in additional jurisdictions: Azerbaijan, Kazakhstan, Georgia, Armenia and Turkmenistan.

It is intended for a definitive distribution agreement to be negotiated in good faith between the Parties including quantities and prices. Under the agreement, Roots will share internal expertise on the use of the RZTO system to help the blueberry plants cope with adverse weather events experienced in the region. Rising temperatures and the escalating effect of global warming is in particular harmful for some blueberry strains as they need specific root zone temperature range to ameliorate the negative effects of sustained heat waves.

Roots is now registered as a supplier with Netafim. This acceptance indicates Netafim's desire to explore ROOTS's technology and will help expedite the commercial relations forward once the pilot in Turkey ended. Turkey has the potential to become one of the powerhouses in blueberry cultivation.

In 2021, Turkey doubled its production surface for blueberries to 200-250 hectares. With increasing interest displayed by large growers and investors, Turkey has the potential to become one of the major suppliers in the blueberry market with a production surface of more than 5,000 hectares and a production of 100,000 tonnes of berries within the next five to ten years. Highlights: USD 5,000 sale to test the efficacy of the Company's proprietary RZTO technology at a pot-based.

The sale follows Netafim's inclusion of ROOTS among its suppliers. Sale allows Roots to leverage its technology with an established global leader in the irrigation solutions for sustainable agriculture sector. Netafim achieved $1.1 billion in sales in 100-plus countries during 2021.

Expands Roots' footprint into a region with the potential to be a powerhouse in blueberry. production ­ a market which has grown 53% over the previous decade.