20/08/2018 - 12:24

WOA signs Wheatbelt agreement

20/08/2018 - 12:24

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Newly-listed Wide Open Agriculture has signed a management agreement with a Netherlands-based investor and a group of Western Australian farmers in relation to a $4.3 million property in the Wheatbelt.

WOA signs Wheatbelt agreement
European company Handover BV recently purchased the 1,787ha property.

Newly-listed Wide Open Agriculture has signed a management agreement with a Netherlands-based investor and a group of Western Australian farmers in relation to a $4.3 million property in the Wheatbelt.

Under the farmland management agreement, WOA will provide financial reporting, monitoring and administration services in exchange for a 20 per cent profit share and capital appreciation over a 10-year period.

European company Handover BV recently purchased the 1,787-hectare property, while a group of regenerative farmers operating as the entity Andover OpCo will manage the land.

There is no direct connection between Handover and Andover.

The agreement will also provide WOA with access to regeneratively produced oats, cereals, oilseed and sheep, along with the potential distribution of a range of food products under its Food for Reasons brand.

WOA chief executive Ben Cole said the agreement would establish a pathway for additional investment into low-risk assets that deliver a strong capital base for the company.

“This agreement leverages the knowledge and experience gained from our existing land holding in East Kulinbah and is the next step in building a stable, robust capital base,” he said.

“It sets a strong foundation for WOA to attract additional investors seeking low risk, real asset opportunities that allow experienced, regenerative farmers to operate at scale in the Wheatbelt.

“The board of WOA believes that regenerative, diversified farming systems can deliver not just good financial outcomes, but also positive social and environmental returns.”

WOA began trading on the ASX last month following a $5 million initial public offering.

Shares in WOA had risen 14.3 per cent at 20 cents each at 1pm AEDT.

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