REG - Light Science Tech. - South Africa Distributor Agreement

Light Science Technologies HoldingsAnnouncement

09/05/2024 07:00

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RNS Number : 7033N  Light Science Tech. Holdings PLC  09 May 2024

Light Science Technologies Holdings plc

("LSTH", "Light Science", the "Company" or the "Group")

 

South Africa Distributor Agreement

 

Expansion of CEA Division's Global Reach

 

Light Science Technologies Holdings plc (AIM: LST), comprising three
divisions: controlled environment agriculture ("CEA"); contract electronics
manufacturing ("CEM") and passive fire protection ("PFP"), announces an
exclusive distribution agreement with agricultural automation provider
AgriLogiq Technical Systems (PTY) LTD ("AgriLogiq"), which will enable the
Company to market and sell its nurturGROW lights in South Africa.

 

Targeting a rapidly growing market

Due to water shortages, poor soil for growing crops and harsh growing
conditions, there is strong demand for innovative farming solutions - and
especially vertical farming - in South Africa. According to the Market Data
Forecast
(https://www.marketdataforecast.com/market-reports/mea-vertical-farming-market)
*, the vertical farming market in the Middle East and Africa is expected to be
worth US$3.71 billion by 2029 - up from US$1.15 billion in 2024.

 

Significant opportunity for targeted global partnership strategy

This agreement, which is for an initial period of five years and with
exclusivity subject to certain performance targets being met, is an important
first step in the development of the Company's global partnerships strategy.
This strategy facilitates low-cost and low risk entry into expected
high-growth markets with partners that are already embedded in the industry,
enabling LSTH to target global customer bases that are actively seeking CEA
products and solutions.

 

Further distribution agreement arrangements are being developed in other
strategic high-growth geographies, an initiative that is being led by
management in conjunction with the assistance of Non-Executive Director,
Richard Mills - whose expertise and contact base has led to a pipeline of new
development opportunities. The Company is focused on developing this strategy
in the coming months and management looks forward to providing further updates
in due course.

 

 

Simon Deacon, Chief Executive Office at LSTH commented: "We are delighted with
this partnership, which is the first of many we look to implement globally. We
believe there will continue to be a compelling backdrop for our solutions and
look forward to targeting high-growth regions, especially where growers have
been less impacted by high input costs and where demand is synergistic with
our product base."

 

Joel van der Schyff, Managing Director at AgriLogiq commented: "We are excited
to join forces with LST because their products excel in quality, modularity,
and design, precisely aligning with our team's needs. Additionally, their
exceptional service and agronomy support create a synergistic partnership,
reassuring our customers that they're investing in the highest caliber product
available for their green houses and growing operations. We look to a bright
future, working closely with the LST staff to develop unique and innovative
solutions for South Africa."

 

 

LSTH and AgriLogiq management signing the agreement.

 

*Middle East & Africa Vertical Farming Market Report
(marketdataforecast.com)
(https://www.marketdataforecast.com/market-reports/mea-vertical-farming-market)

 

For additional information please contact:

 

 Light Science Technologies Holdings plc                    www.lightsciencetechnologiesholdings.com

                                                          (http://www.lightsciencetechnologiesholdings.com/)

 Simon Deacon, Chief Executive Officer                      via Walbrook PR

 Jim Snooks, Chief Financial Officer

 Andrew Hempsall, Chief Operating Officer

 Strand Hanson Limited (Nominated & Financial Adviser)      Tel: +44 (0) 20 7409 3494

 Ritchie Balmer / James Harris / Rob Patrick

 Oberon Capital (Broker)                                    Tel: +44 (0) 203 179 5300

 Mike Seabrook / Nick Lovering

 Walbrook PR Ltd (Media & Investor Relations)               Tel: +44 (0)20 7933 8780 or lst@walbrookpr.com (mailto:lst@walbrookpr.com)
 Nick Rome / Joe Walker

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018, as amended.

 

Notes to Editors:

 

About Light Science Technologies Holdings
plc (www.lightsciencetechnologiesholdings.com
(http://www.lightsciencetechnologiesholdings.com/) )

Light Science Technologies Holdings plc operates through three divisions:
controlled environment agriculture ("CEA"); contract electronics manufacturing
("CEM"); and passive fire protection ("PFP"). The company is involved in the
design, manufacturing, and installation of products and customized solutions
spanning various industry sectors, including commercial horticulture, pest
control, lighting, audio, gas detection, and fire protection. With a focus on
addressing global challenges related to food security, climate change, and
fire protection, the Group is committed to developing robust solutions in
these rapidly growing market sectors.

 

LSTH is the holding company for Light Science Technologies Ltd ("Light Science
Technologies") and Tomtech (UK) Limited ("Tomtech") in the CEA division; UK
Circuits and Electronics Solutions Limited ("UK Circuits") in the CEM
division; and LSTH IFB Limited ("LSTH IFB") in the PFP division.

 

Controlled Environment Agriculture

The Group's tailored solutions encompass control systems, grow lights, sensor
technology, venting, and irrigation systems, catering to both UK and global
customers. Key markets include indoor, vertical, glasshouses, polytunnels, and
medicinal farming. Driving factors comprise global food and water shortages, a
growing population, government policies promoting sustainable growth methods,
heightened scrutiny of food production's impact on climate change, and a shift
away from processed foods. Key markets span the Americas, Australasia, and
select locations in the Middle East.

 

The sensorGROW technology enables real-time monitoring of essential air zone
growing factors such as carbon dioxide, air humidity, air pressure, air
temperature, and light. In development, it aims to extend monitoring to soil
temperature, soil moisture, and soil electroconductivity. This empowers
farmers to enhance resource management, saving costs on water, nutrients,
fertilizers, and energy, while simultaneously increasing yields and
cultivating healthier crops. Learn more here
https://lightsciencetech.com/sensorgrow/
(https://lightsciencetech.com/sensorgrow/) . The nurturGROW sustainable grow
lighting product range, applicable to greenhouses, vertical farming,
polytunnels, and medicinal plants, addresses a robust market with an
anticipated global worth exceeding US$6.5 billion by 2026. Explore solutions
here https://lightsciencetech.com/solutions/greenhouse/
(https://lightsciencetech.com/solutions/greenhouse/)

 

Through Tomtech, the Group stands out as a UK leader in control systems for
commercial greenhouses and polytunnels. Tomtech enables growers in optimizing
and automating cultivation environments, leading to superior crop growth. The
product range includes control systems, software, irrigation, lighting,
sensors, and venting, applicable across various crops, ultimately improving
yields and profitability. Discover more here https://www.tomtech.co.uk/
(https://www.tomtech.co.uk/)

 

Contract Electronics Manufacturing (https://www.ukcircuits.co.uk/
(https://www.ukcircuits.co.uk/) )

 

UK Circuits serves as the Group's profitable and revenue-strong CEM-focused
division. It excels in designing, procuring, and manufacturing high-quality
CEM products, with a specialization in Printed Circuit Boards. These products
find application across diverse sectors such as audio, automotive,
electronics, gas detection, lighting, pest control, telecommunications, and,
more recently, in the CEA market.

 

Passive Fire Protection (https://injectafirebarrier.com/
(https://injectafirebarrier.com/) )

 

LSTH IFB offers a practical and cost-effective solution to rectify
non-compliant public and private buildings, spanning residential, commercial,
and industrial sectors, with regard to fire safety regulations-a challenge
addressed by a £5.1 billion allocation from the UK government. Serving as the
UK's premier independent approved installer, LSTH IFB utilizes the
ground-breaking Injectaclad fire-resistant graphite barrier system. This
system is retroactively installed within building cavities, reinstating
fire-resistant performance and containing the spread of fire and smoke
compliant with regulatory requirements. This innovative solution stands out as
an appealing alternative to the more costly and disruptive method of removing
external facades and installing traditional fire barriers. With a proven track
record in the passive fire protection market and a robust sales pipeline, LSTH
IFB targets a UK market potentially valued at up to £50 billion**.

 

About AgriLogiq

 

AgriLogiq is an agricultural automation service provider that provides growers
and polytunnel builders with comprehensible cutting-edge proprietary
poly-greenhouse automation software and hardware components.

 

Their team of poly-tunnel specialists has expertise in climate control,
irrigation control, fertigation control, and the automation of all types of
propagation, flower, berries and vegetable tunnels, including greenhouses for
peppers, cucumbers, and high-end crops.

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