29/11/2021 - 14:45

Agribusiness pockets $20m for plant-based push

29/11/2021 - 14:45

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Wide Open Agriculture plans to spend $20 million raised from sophisticated and institutional investors ramping up its plant-based product offerings.

Agribusiness pockets $20m for plant-based push
Wide Open Agriculture managing director Ben Cole. Photo: Wide Open Agriculture

Wide Open Agriculture plans to spend $20 million raised from sophisticated and institutional investors ramping up its plant-based product offerings.

Another 26.7 million shares in the ASX-listed regenerative food and agriculture company are set to hit the market after being offered up to investors at 75 cents per share, an 11.8 per cent discount on November 24’s closing price.

The news follows WOA’s first major distribution deal for its regeneratively grown oat milk, OatUP, which will be carried by Woolworths in the new year.

With new capital in hand, Wide Open Agriculture says it plans to advance its products in this space by building a commercial scale plant-based milk facility in Australia.

According to WOA, the facility will produce oat milk and other plant-based milks under the company’s Dirty Clean Food brand and provide contract manufacturing services to private label customers.

Proceeds from the raise will also advance a pilot-scale lupin protein facility to supply the production of Dirty Clean Food’s oat milk.

Samples from this are hoped to progress research and development towards potential commercialisation.

WOA managing director Ben Cole said his company has spent the last seven years positioning itself to grow alongside consumer demands.

“In the last 12 months, we have firmly established the Company as the leader in regenerative food and farming in Australia,” he said in an ASX release.

“As we increase our plant-based offerings, we know this segment is well-aligned with our regenerative purpose and represents one of the fastest growing and most attractive markets in the food industry.”

An accompanying share purchase plan will also be offered to existing investors, with securities available at the same price.

The placement was jointly led by Euroz Hartleys and Canaccord Genuity.

Wide Open Agriculture shares are down 10.59 per cent to trade at 76 cents.

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