The Wide Open Agriculture Ltd (ASX: WOA) share price is skyrocketing so far this week.
The company’s share price has soared 27.78% since it closed at 54 cents on Friday. It’s now trading at 69 cents, up another 2.22% on the day so far. For perspective, the S&P/ASX 200 Index (ASX: XJO) has remained steady over the same time frame.
So why is Wide Open Agriculture having such a great start to the week?
Taiwan plan
Wide Open Agriculture’s Dirty Clean Food has signed an exclusive two-year distribution agreement with DKSH Taiwan Ltd.
Under the agreement, DKSH Taiwan will market and sell the company’s oat milk in Taiwan. This is expected to generate $650,000 in annual sales.
The oat milk product is carbon neutral and made with regeneratively-farmed oats. Today’s agreement is the fifth distribution agreement for Dirty Clean Food in the past seven months.
Commenting on the deal, managing director Dr Ben Cole said:
We are thrilled to partner with DKSH to launch Dirty Clean Food’s entry into the plant-based drinks market in Taiwan.
DKSH is a global leader in market expansion services, with broad reach and best in class capabilities. We are hopeful that this is the beginning of a long and fruitful partnership between our companies.
Supply agreement
In another deal this week, Wide Open Agriculture has also signed an agreement with Monde Nissin Australia to supply Buntine Protein for potential commercialisation. The product is a plant-based protein concentrate made from lupin seeds.
Wide Open Agriculture will supply the protein from a pilot production plant. The facility is under construction with the company targeting production of Buntine Protein in the fourth quarter of FY22.
Again, the product has no carbon footprint and can replace animal-based ingredients in food and beverages.
Commenting on the deal, Cole said:
WOA is excited to be working with MNA who share our passion to develop the market for regenerative lupin products.
This agreement has the potential to catalyse farmers to grow more regenerative lupins and offer consumers a range of innovative, delicious plant-based products.
Share price snapshot
The Wide Open Agriculture share price has lost 5.5% in the past year, while it is down 2% year to date.
In the past week, it has surged 22%, while it is up more than 6% over the past month.
For perspective, the benchmark S&P/ASX 200 Index has climbed 1% in the past year.
Wide Open Agriculture has a market capitalisation of about $88.5 million based on today’s share price
The post Here’s why the Wide Open Agriculture share price has surged 28% so far this week appeared first on The Motley Fool Australia.
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