Water Ways Technologies (WWT), through its wholly owned subsidiary Irri-Al-Tal, is an Israeli based agriculture technology company, specializing in water irrigation. CIG has been covering WWT for some time now. A comprehensive report of the company is posted on our website (link). This article will briefly explore WWT’s work in the cannabis industry specifically.
Irri-Al-Tal’s irrigation and control systems for cannabis growing
Services provided by Irri-Al-Tal to cannabis producers
Growing cannabis is a science with many different factors to consider. Ensuring proper light (and light deprivation) humidity, temperature, and soil pH, are just some of the growth variables that must be considered when growing cannabis. WWT’s expertise in agronomics allows for precise manipulation of environmental conditions to ensure Licensed Producers yield the maximum benefits from their crops.
Benefits of Superior Agronomics and Irrigation:
- Increase yield of crop
- Increase quality of crop
- Prevention of mold
- Maximization of nutrient utilization by the plant (reducing cost for producers)
- Reduction of potential of stunted plant growth
Irri-Al-Tal’s cannabis operations are currently located in Israel and Colombia, however, the company has plans to expand to different areas. Irri-Al-Tal offers “integrated solutions for cannabis growers, precise irrigation systems, and project implementation capabilities”. The company specializes in many irrigation techniques, including flood irrigation, drip irrigation, aeroponics, and hydroponics.
Project with CRON and Israel Opportunity:
In our first report on WWT, CIG discusses the order received by WWT for a complete irrigation system for a joint venture project between Kibbutz Gan Shmuel and Cronos Group (CRON). Gan Shmuel is one of the largest and most established kibbutzim (agricultural community) in Israel. The country of Israel is ideal for growing cannabis, as their climate supports year-round greenhouse cultivation without the need for supplemental flower lighting, allowing for low-cost production for producers. Medical cannabis is legal in Israel and recently, the country has decriminalized adult use of cannabis. Irri-Al-Tal will only look to work with cultivators in Israel who are licenced by the Yakar (Medical Cannabis Unit of the Israeli Ministry of Health).
Financial Statements and Future Outlook:
On Thursday May 2, WWT reported their fiscal year 2018 financial results. The company reported record operating revenues of $15.7 million CAD. These numbers are especially impressive when considering that, fully diluted, WWT has a market cap of just over $22 million CAD given a $0.22 CAD share price. In the financial summary news release, the company references their ongoing engagement in the cannabis sector:
- In 2018, Irri-Al-Tal successfully launched the implementation of one cannabis project in Israel, including delivery of the irrigation, fertigation and Internet of Things control system to an Israeli subsidiary of the Cronos Group (TSX: CRON). The Company is currently in the process of submitting bids for similar projects to a number of future licensed producers in the Israeli market.
Further, Ohad Haber, President, CEO, and Chairman of the WWT board, stated that, in 2018, the company “embarked on a mission to aggressively expand [their] business plan in the global legal cannabis sector, which [they] have advanced from a concept to tangible projects in multiple countries”. Given these comments and given that WWT already has a partnership with one of the biggest global Licenced Producers in CRON, it would not be surprising to see WWT announcing future contracts with other cannabis companies. Thus, WWT is a cannabis ancillary company that could be one to watch in the near future.
Link to Water Ways Technologies Website, Here.
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