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CLI - CropLogic


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Agrarian IPO CropLogic has good chances in US market

A feature of this upcoming agrarian IPO is that unlike the last several hundred small-cap tech listings, it's not being spruiked as a "cloud" or "software as a service" based offering or a robotics story.

 

While the Kiwi-based CropLogic is all about predictive analytics to help growers achieve better yields, there's no agenda to put agronomists out of work with a fully automated approach.

 

CropLogic's IP is based on gathering data from sensors in the field (and other sources such as aerial pictures) to devise a crop management plan.

 

"The technology allows agronomists to spend less time in the field while still getting the same level of reliable data," says managing director Jamie Cairns. "There's no point in them sitting in a car going from field to field ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâہ¡ÃƒÆ’‚ that's not what they were trained for."

 

The sensors pick up soil moisture and multiple depths and measure soil temperature, which gives a steer on the crop's sugar development. The sensors also include a rain gauge, which usually only Eric Olthwaite of Ripping Yarns fame would get excited about. But in this case, the gauges measure not just normal precipitation, but the moisture from irrigators.

 

While even small-acre cockies are more likely to wield GPS trackers than gumboots these days, CropLogic is squarely aimed at big producers with 1000 acres (400ha) or more. CropLogic has also been working closely with the crop processors: giants such as PepsiCo (maker of Doritos), Simplot, ConAgra and McCain Foods.

 

Product trialling to date has centred on the humble spud ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâہ¡ÃƒÆ’‚ which is one of the highest-value crops and most difficult to manage ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâہ¡ÃƒÆ’‚ in the chip-loving US.

 

The company estimates 29 million addressable acres in the US and 60 million elsewhere. In other words, these tracts of land are in packages of at least 1000 acres (and often much more).

 

In the state of Washington, CropLogic has captured a 30 per cent share of the 170,000 acres under spud cultivation. The company gained this foothold (and just over $2 million of existing revenue) via the recent acquisition of agronomy business Professional Ag Services.

 

CorpLogic expects to earn a $US35 ($44) per acre fee per annum for its deluxe service that includes a flying squad of agronomists to sort out any bacterial soft rot or root-knot nematode problems on the spot. If every large-scale farmer in the US were to adopt the service ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâہ¡ÃƒÆ’‚ which they won't ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâہ¡ÃƒÆ’‚ CropLogic would be a $1 billion a year business.

 

But penetrate 5 per cent of this market and that's a handy $50m-a-year business. And with the average potato crop returning $US3657 an acre, $US35 is small beer if the service results in improved yields. Field testing to date suggest an average yield improvement of 6.25 per cent, which would lift revenue by $US200,000 for every 1000 acres cultivated. The company is also eyeing the cotton, corn, wheat and soybean sectors as logical expansions and it also has a foothold in China.

 

CropLogic is currently doing the rounds for $5m-$6m at 20c apiece, ahead of a planned listing on August 31 under the proposed ASX code CLI. The offer closes next Friday.

Tim Boreham
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  • 4 years later...

down .....

Dec 2021 ; will acquire a suite of gold exploration assets located in the Goldfields and Halls Creek in Western Australia. CropLogic will raise up to $6,000,000 via re compliance capital raising.

Jan 2022 ; a notice of consolidation of securities. Shareholders will get 1 share for every 160 presently owned

last drinks ....

Feb 2022 ; the company issues a prospectus for an offer of up to 30,000,000 Shares at an issue price of $0.20 per Share to raise up to $6,000,000

....and OUT

On 12 May 2022, Croplogic Limited (CLI) changed its name and ASX code to Olympio Metals Limited (OLY).

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