SKS TECHNOLOGIES GROUP LIMITED — Capital/Financing Update 2019

Apr 30, 2019

ASX Release

Enevis Enters Protected Cropping Market with LumiGrow Smart LED Grow Lights

1 May 2019

Enevis Limited (ASX: ENE) has signed an exclusive supply agreement with LumiGrow, the USA-based designer and manufacturer of smart grow light solutions. The evergreen contract enables Enevis to leverage its existing skill base to enter the protected cropping markets and other emerging horticultural markets in Australia, New Zealand and parts of Asia.

Protected cropping in Australia and New Zealand alone is valued at $1.56B at the farm gate and accounts for approximately 30% of vegetables grown in Australia. LED grow light technology has the potential to vastly improve yield and quality of vegetable, floral and medicinal crops grown in greenhouses and controlled environments. LumiGrow technology has profound applications in emerging markets such as cannabis, aquaponics, urban cropping and large-scale plant nurseries.

LumiGrow’s highly developed and proven technology is widely used in North America with more than 20,000 fixtures controlled in the cloud for 150 customers and over eight billion individual datapoints collected to provide critical analytical information for optimising crop production and informing future product development.

The smart lighting and adjustable LEDs enable growers to precisely control all of light’s characteristics from any smart phone, tablet or computer, tailoring lighting environments to match the stage of the crop’s development and respond to the natural environment. Such control increases crop yield, quality and consistency, without the use of chemicals or additional land.

The Enevis business platform contains the sophisticated electrical, lighting and IT skills and knowledge, as well as the corporate services, to support the deployment of state-of-the-art LED lighting systems such as those developed by LumiGrow.

Enevis’ CEO, Mr Peter Jinks, said, “LumiGrow’s smart LED grow lights can be installed in new facilities or retrofitted to existing glasshouses, making it an ideal tool for growers wanting to improve their crops and increase their productivity. LumiGrow lighting is a disruptive technology that will generate industry efficiencies and improve growers’ margins.”

“The new agreement is a natural extension for Enevis, in terms of its strategy to diversify and leverage new lighting technology and associated software, and the board is currently reviewing its options with respect to the working capital required to fund this opportunity,” said Mr Jinks.

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LumiGrow Chief Executive Officer, Jay Albere, said, “The Australian and New Zealand markets are a logical next step in terms of our growth, given their size and potential for transition from traditional horticultural methods to smarter systems that place fewer demands on the natural environment. We’re looking forward to a strong and productive relationship with Enevis which clearly has the experience, capability and vision to introduce the LumiGrow brand and technology to the market.”

Enevis has created a dedicated business, under the brand of Enegrow, to focus exclusively on the protected cropping and other horticultural markets. This business unit will create further efficiencies, with three discrete business units using an established operating platform with a proven management team, business acumen and networks, and the ability to offer fully financed solutions to help the market transition.

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Further Information: Peter Jinks Enevis Limited, Chairman & Managing Director Phone 03 9289 5000

About Enevis Limited (ENE)

Enevis delivers energy efficient technology solutions, through the creative manufacture of hardware and installation support services. With strong capabilities in servicing national customers, Enevis provides innovative LED lighting products, energy consumption cost benefit and rebate analysis, audio-visual, communications and electrical solutions to the commercial, industrial and retail markets.

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