Roots Sustainable Agricultural Technologies Limited provided the following update on recent initiatives designed to increase exposure of the Company's technology and underpin international expansion opportunities. Roots has entered into an authorised representation and distribution agreement with Unicorn-Farm Tech, the agricultural division of Unicorn International LLC. ((Unicorn). Unicorn is an independent organisation of engineers, consultants and technical specialists with domain expertise in power, data centres, industrial services, water works and renewables. Unicorn is focused on helping clients receive a seamless experience that will allow them to leverage the value of technology investment, solve their most complex operational challenges and drive performance improvements. Under the agreement, both Roots and Unicorn will work together to market, sell, install and service Roots' proprietary technology systems in Oman. The agreement is valid for a period of two years and can be terminated by either party early, subject to prior notice of 90 days from either party by written letter. During the initial term of the agreement, Unicorn will be responsible for promotion and selling Root's product and services while offering demonstrations to potential customers. The group will also conduct initial site surveys and carry out installation initiatives, as well as after sales services.
Having an established in country party such as Unicorn considerably broadens the Company's international reach. As part of the agreement, once Unicorn has placed an order of at least $50,000 value in the first year, Unicorn are authorised to appoint sub-distributors, without exclusivity, for expansion of the business in Oman. The customers of Unicorn can implement the solution in Oman only. There is no upfront material consideration to be exchanged between the parties and at this stage, the financial impact of the agreement cannot be quantified as it is dependent on customer uptake. The development also provides the Company with access to a market seeking to reduce the dependence on food imports. Food security is seen as a top priority for governments across the Middle East, which provides Roots with a major opportunity.