In April 2023, food and agriculture company Wide Open Agriculture (ASX: WOA) was suspended from the ASX after failing to prove its funding claims. What was supposed to be a nine-week hiatus has turned into a months-long suspension with no end in sight.
However, that has not stopped the Company from pursuing commercial opportunities that might become its ticket out of suspension.
Wide Open Agriculture has agreed to acquire the assets of Prolupin GmbH, a European lupin protein producer, for $4.12 million, granting the Company immediate commercial-scale manufacturing capabilities to bring Buntine Protein (a regenerative plant-based protein) to market.
The purchase consideration includes Prolupin’s manufacturing facility, the patents to produce the Prolupin protein isolate, the “Luve” trademark, an inventory of finished Prolupin protein products, and a supply of raw materials, including lupins.
It will be funded via an upcoming capital raise, details of which are being finalised. In addition, WOA will pay about $160k for operating costs.
CEO of Wide Open Agriculture, Jay Albany, said, “Our key goal as a Company has been to bring Buntine Protein® to market as quickly and cost-efficiently as possible. This Acquisition grants us immediate commercial production capacity in Europe, a dynamic environment for the development of plant-based protein products. This is a giant leap forward for WOA, our shareholders, and the industry at large.”
The Acquisition offers WOA an immediate operational footprint in Europe through Prolupin’s manufacturing facility in Germany. This facility can produce 500 tonnes of lupin protein concentrate per annum (TPA). It will be upgraded to produce about 1,000 tpa of WOA’s Buntine Protein with a modest investment of $3 to 5 million within one to two years. WOA will explore multiple funding options for this equipment, with the most relevant suppliers located nearby in Germany.
WOA sees the many environmental advantages of lupins, including soil rejuvenation, landscape renewal, and nitrogen fixation, as part of a grain cropping system. It will integrate Prolupin’s engineering team and technology to diversify its lupin product catalogue.
Besides expanding its footprint since its ASX suspension, WOA has undergone some leadership changes. Its non-executive director, Elizabeth Brennan, resigned from the board as the Company moved to align with upcoming opportunities in the plant protein sector. Secondly, Company Secretary Sam Wright also stepped down to pursue other professional opportunities. Company CFO Matthew Skinner replaced Wright.
With this acquisition, WOA expects to produce Buntine Protein commercially within six months. With a growing pipeline of potential customers, the Company expects to achieve high utilisation from the facility quickly. Plus, it will focus decisively on B2B clients, with over 150 samples of Buntine Protein already sent to large global ingredient and food manufacturing companies.
Recently, the Company also signed a non-binding Memorandum of Understanding with Saputo Dairy Australia to produce Buntine Protein starting in 2025.
Will these acquisitions and partnerships be enough to finally bring WOA back from suspension?
Alinda is a Business Reporter for The Sentiment
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