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Wide Open Agriculture Limited (ASX: WOA, "Wide Open Agriculture" or the "Company") is pleased to present the Company’s Quarterly Activity Report for the three-month period ending 30 September 2024.
HIGHLIGHTS
- Group-wide cost reduction to preserve funds for future growth
- Engaging potential fee-based toll treatment partners to increase German facility utilisation and efficiency
- Board renewal and change of premise
The September quarter saw the Company streamline its business operations as part of ongoing cost reduction measures. The goal was to preserve capital and support commercialising the Company’s globally patented plant-protein products. Company management continues to engage with potential channel partners and explore strategic opportunities for future growth.
WOA’s German Production Team in preparation for toll production at the Facility
Seeking Industry Partnership and Global Commercialisation Opportunities
Following the acquisition of Prolupin GmbH in Grimmen, Germany, the Company focused on commercialising its production facilities, patented IP, and in-house expertise to attract and strengthen its channel to market. For example, the company completed trials with toll treatment clients and entered discussions with several food manufacturers and distributors.
WOA continues investigating strategic partnerships and opportunities to mitigate German operational costs while the facility is underutilised.
Strategic Cost Review and Quarterly Cashflow Report Commentary
WOA has undertaken a comprehensive operational review to reduce its ongoing costs, preserve capital, and reset the business for future growth.
As part of cost-reduction measures, WOA relocated its head office and R&D facility and closed its pilot plant, which is expected to save over $600,000 for the 2024/25 financial year.
At the end of the quarter, the Company had cash at the bank of approximately $3.4 million.
During this quarter, the Company incurred a total net operating cash outflow of $1.7 million, with essential items comprising:
- Administration and corporate costs of $894k, previously incurred by the Company and paid during the September quarter. These include one-off legal and advisory costs related to the divestment of the Dirty Clean Food business. The Company is reviewing all key service agreements and making necessary changes. It expects administration and corporate costs to reduce further in the following quarter as management maintains its efficiency focus.
- $429k as a once-off factory retrofit for the trial production of BP80 and research and development activities of new lupin protein applications for the Germany facility; and
- Staff costs amounted to $407k, reduced by 60% compared to the previous June 2024 quarter. After the September quarter, further staff reduction measures were implemented, which will be reflected in costs for the upcoming quarters.
Research & Development Activities
WOA continued its research and development activities, exploring new market applications for its lupin protein products and enhancing production protocols to improve yield in the manufacturing process.
Completed Capital Raise
In July 2024, the Company completed the second tranche of its share placement to sophisticated investors and a priority offer to shareholders to raise an additional $620k. The Company received strong support from new and existing investors.
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This article includes content from Wide Open Agriculture, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Wide Open Agriculture
Investor Insight
A Bloomberg Intelligence report shows the plant-based market could make up to 7.7 percent of the global protein market by 2030, with a value of over $235 billion, up from US$42.7 billion in 2020. Wide Open Agriculture’s value proposition combines technology with the benefits of lupin to create a range of powerful and sustainable plant-based protein products that can leverage a booming market.
Overview
Wide Open Agriculture (ASX:WOA,FRA:2WO) is an ag-tech company based in Australia, focusing on the next generation of plant protein ingredients for food and drink manufacturers globally. The company is focused on harnessing the benefits of lupin as a sustainable and powerful source of protein, offering it as an alternative to traditional plant-based protein products such as soy and pea.
Lupin is increasingly recognized as a valuable plant-based superfood, recognized for their high protein and dietary fibre content, making them a valuable addition to human nutrition. On the sustainability front, lupins have the ability to enrich soil fertility, thereby supporting more environmentally friendly agricultural practices. Their role in crop rotation and their nitrogen-fixing abilities contribute to reduced reliance on synthetic fertilizers, promoting better land management and sustainability. Using lupin-based protein ingredients helps improve manufacturers’ environmental credentials, as well.
Key to WOA’s value proposition is its patented ag-tech process that turns lupins into a superfood, producing a protein ingredient that enables food manufacturers to improve and replace traditional ingredients by eliminating the need for sugars and other artificial additives. WOA’s Buntine Protein is a breakthrough product, offering the most neutral-tasting plant-based protein in the market and allowing food manufacturers to create ‘clean label’ food and drink products. Traditional soy-based and pea-based ingredients often require additional ingredients, like sugars and additives, to make them palatable to consumers.
WOA has relocated its head office and R&D facility from Kewdale to a more strategically positioned location at 2/284 Oxford Street, Leederville, Western Australia. The new Leederville office offers a more cost-effective solution while providing convenient access to key commercial services. The company has also conducted a comprehensive review of its German production facility operations and costs, to improve operational efficiency and to address facility underutilisation to date, caused by a long procurement cycle in the food industry. WOA completed two toll treatment trials for local plant-based protein companies which resulted in the production of high-quality protein products, showcasing the facility's capabilities to potential customers.
Company Highlights
- Wide Open Agriculture (WOA) is focused on developing cleaner, better quality and more functional alternatives to current plant-based protein sources.
- WOA plans to leverage its patented agritech process to create protein-rich, lupin-based products and ingredients that do not contain additives like sweeteners, gums and stabilizers traditionally used with conventional soy-based or pea-based proteins.
- Overall, the products created by WOA are cleaner tasting and more functional. The company’s main goal remains to bring its lupin protein isolate, called Buntine Protein® to market as quickly and cost effectively as possible.
- Over the next six to nine months, WOA will work with food companies to get products to market and ramp up production at its world class manufacturing facility in Germany.
Key Products and Process
Through IP licenced from Curtin University in 2020, WOA has worked towards commercializing the IP at scale, combining it with the company’s deep knowledge of lupin protein extraction and processing. As a result, WOA has developed a range of products that provide a healthier, more sustainable alternative to traditional soy-based or pea-based protein products.
WOA opened a pilot production plant early in 2023 to produce its eco-friendly Buntine Protein. The technology targets a constituent part of lupin that allows it to increase the proteins’ ability to blend and mix with other food ingredients.
In October 2023, WOA purchased European lupin protein-isolate producer Prolupin GmbH. The $4.3-million acquisition gives WOA immediate access to commercial-scale manufacturing capacity. Having a foothold in Germany will also help WOA get its Buntine Protein to a wider market. The sale includes Prolupin’s German manufacturing facility and the patents to produce the Prolupin protein isolate.
The German facility can produce 500 tons per year of lupin-protein concentrate with the ability to expand production to 1,000 tons per year, with an investment of $3 to $5 million within the next one to two years. Prolupin’s technology will also help diversify and enhance WOA’s lupin-product catalogue, with the capability to produce protein-rich lupin isolates, a protein concentrate in wet form, and a lupin oil.
WOA’s proprietary lupin-based protein ingredients have been successfully integrated into third-party consumer products in Australia and the US. CHONK vegan cookies, sold in Australia, is a gluten-free, egg-free, soy-free and dairy-free treat that uses Buntine Protein as an ingredient. In the US, WOA’s Prolupin isolate LP90 has been integrated into Superitalia’s Instant Superfood Cappuccino brand.
After an extensive R&D program, WOA’s new lupin fibre product, designed for the dietary fibre market projected to reach $16.3 billion by 2032, is now also ready for commercialization.
This year, the company plans to: 1) increase sales by working with international food manufacturers and brands; and 2) monetize co-products like lupin-oil and lupin fibre.
Management Team
Yaxi Zhan - Non-executive Director and Chairperson
Yaxi Zhan is an experienced executive with over 17 years of experience across startups, large-scale mining operations and ASX-listed companies. With strong connections in the Australian and Chinese business communities, Zhan is recognised for her business acumen and efficiency across diverse business and cultural environments. She is the founder and former managing director of Accelerate Resources Limited (ASX:AX8).
Anthony (Maz) Maslin - Non-executive Director
Anthony Maslin is an entrepreneur and social change visionary, driven by bringing new meaning and hope to environmental and community projects.
Joanne Ford - Non-executive Director
Joanne Ford is an experienced director and executive, with over 30 years of experience in ASX and international listed groups, start-ups and not-for-profit companies.
Beverley Nichols - Interim Chief Financial Officer
Beverley Nichols is a qualified certified practicing accountant with more than 15 years of experience, serving as the CFO of ASX listed companies across industries. Her extensive experience in financial reporting, regulatory compliance, and finance management will enhance the company's financial operations and support its strategic objectives.
Merilyn Elson - Product Strategy and Innovation Manager
Merilyn Elson’s background is in the fast-moving consumer goods industry, where she worked for a WA family-owned food manufacturer for over 30 years.
Hayder Al-Ali – Senior Food Scientist
During Hayder AL-Ali's PhD program, he worked extensively on optimizing lupin protein extractability, techno-functionality and palatability.
Creating food ingredients that build a better future for people and the planet.
Wide Open Agriculture Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects