Light Science Technologies shares jump on South Africa deal
Light Science Technologies Holdings
2.70p
14:00 20/05/24
Shares in Light Science Technologies Holdings (LSTH) surged on Thursday after the AIM-listed company signed an exclusive distribution agreement to market and sell its nurturGROW vertical farming lights in South Africa.
FTSE AIM All-Share
810.02
15:40 20/05/24
Industrial Engineering
14,492.27
15:40 20/05/24
The agreement, with agricultural automation provider AgriLogiq Technical Systems, is the "first of many we look to implement globally", according to LSTH chief executive Simon Deacon.
LSTH said there's strong demand for alternative farming solutions like vertical farming in South Africa due to water shortages, which lead to poor soil and harsh growing conditions.
The agreement with AgriLogiq, which is for an initial period of five years, is similar tot others being discussed in "other strategic high-growth geographies".
The market for vertical farming across the Middle East and Africa is expected to be worth $3.71bn by 2029, more than trebling from $1.15bn in 2024, according to Market Data Forecast numbers cited by LSTH.
"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," the company said.
The stock was up 7.5% at 2.9p by 1518 BST,