South Africa Distributor Agreement

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*, 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)

For additional information please contact:

Light Science Technologies Holdings plc	www.lightsciencetechnologiesholdings.com
Simon Deacon, Chief Executive Officer Jim Snooks, Chief Financial Officer Andrew Hempsall, Chief Operating Officer	via Walbrook PR
Strand Hanson Limited (Nominated & Financial Adviser) Ritchie Balmer / James Harris / Rob Patrick	Tel: [phone]
Oberon Capital (Broker) Mike Seabrook / Nick Lovering	Tel: [phone]
Walbrook PR Ltd (Media & Investor Relations)	Tel: [phone] or [e-mail]
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)

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/ . 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/

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/

Contract Electronics Manufacturing (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/)

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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