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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.
Hempalta
Investor Insight
HEMPALTA presents a unique investment opportunity in the rapidly expanding carbon credit market. With its innovative approach to carbon credit generation, HEMPALTA is poised to capitalize on the growing demand for carbon offsets, supporting global net-zero commitments and providing substantial returns for forward-thinking investors.
Overview
HEMPALTA (TSXV:HEMP), publicly traded on the TSX Venture Exchange, is revolutionizing the approach to carbon sequestration by harnessing the power of industrial hemp. The company's mission is to transform hemp into a sustainable tool for generating carbon credits, addressing the urgent need for climate change solutions while tapping into a burgeoning market.
Recent market analyses underscore the potential of HEMPALTA's strategy:
- The global carbon credit market, valued at approximately US$479.41 billion in 2023, is projected to grow at a compound annual growth rate (CAGR) of 39.4 percent from 2024 to 2030.
- By 2030, companies are expected to purchase up to 1.4 billion carbon credits annually, potentially reaching 5.9 billion credits by 2050.
- The annual value of the carbon market could reach an impressive US$884 billion by 2050.
HEMPALTA is strategically positioned to meet this escalating demand through its innovative hemp-based carbon credit generation process. By acquiring 100 percent interest in Hemp Carbon Standard, HEMPALTA has solidified its leadership in the hemp carbon credit market, offering businesses a sustainable platform to reduce greenhouse gas emissions.
Hempalta’s low-risk, scalable carbon credit model
With the HCS acquisition, HEMPALTA is prioritizing premium hemp-derived carbon credits. HCS will develop and manage the scientific methodologies, farmer onboarding, and validation frameworks for hemp-based carbon credits. At the same time, Hempalta Processing Inc. will continue to operate its intellectual property and product lines retaining ownership of key products such as Hempy Cat, Hemp Fresco and Hempzorb, offering them for licensing. This enhanced strategic focus on its carbon credit business will allow the company to achieve its long-term goals:
- Provide Credible Carbon Credits: Aligning HCS with recognized standards, third-party verifiers, and remote sensing technology to realize the maximum benefits of hemp-based offsets.
- Expand Farmer Participation: Incentivizing regenerative industrial hemp cultivation through robust revenue-sharing models tied to carbon credit issuance.
- Enhance Stakeholder Value: Focusing on generating high-margin, recurring carbon credit sales, which are intended to drive long-term growth.
With an experienced leadership team that brings years of expertise in operations, manufacturing, marketing, consumer packaged goods and retail sales, HEMPALTA is poised for significant growth.
Key Business Segment
Carbon Credit Generation
HEMPALTA's core business revolves around the generation and sale of carbon credits derived from industrial hemp cultivation and processing. The company’s ‘no-risk’ carbon credit model involves four simple steps:
- Sign up industrial hemp growers for regenerative agriculture carbon credit incentive program (10 year agreement)
- Measure, report and verify carbon removal credits
- Sell carbon credits to global companies on multiple markets
- Grower receives carbon revenue share post sale
HEMPALTA’s unique advantage lies in its advanced technological infrastructure, which ensures the precision and transparency required in the carbon credit market. This cutting-edge technology ensures efficiency, transparency and scalability in its operations.
- Measurement, Reporting and Verification (MRV) Software: HEMPALTA utilizes advanced MRV software to accurately track and quantify carbon sequestration throughout the hemp lifecycle.
- Blockchain Technology: The implementation of blockchain ensures transparency and traceability in carbon credit transactions, enhancing trust and credibility in the market.
- Artificial Intelligence: AI-driven systems optimize CO2 tracking and credit verification processes, improving efficiency and accuracy.
HEMPALTA has demonstrated significant progress in managing and expanding its industrial hemp acreage and in generating carbon credits. Through its innovative efforts, HEMPALTA has successfully cultivated and processed industrial hemp across substantial acreage, showcasing the scalability of its operations.
The company effectively grew the number of industrial hemp farms under its management from 15 farms in 2023 to 36 farms by the end of 2024, increasing its acreage to 13,556 across Canada, USA, UK, Portugal, Australia, Ukraine and Spain, with an estimated carbon credit value of $2 million.
HEMPALTA is actively pursuing growth strategies to enhance its market position, which includes expanding its operations globally, targeting regions with favorable conditions for hemp cultivation and carbon credit markets, and investing in regenerative farming practices to further increase the carbon sequestration capacity for hemp crops.
Additionally, the company is focused on supporting and developing biochar production capabilities, which offer long-term carbon storage solutions and additional revenue streams.
Leadership Team
Darren Bondar – President, CEO & Director
Darren Bondar previously founded and served as president and CEO of Inner Spirit Holdings, the first cannabis retail company listed on the Canadian Securities Exchange. Under his leadership, Inner Spirit Holdings expanded significantly until its acquisition by Sundial Growers in July 2021. Prior to that, he was the president and CEO of Watch It! and Comfortable Image, consumer retail and franchising businesses. Bondar holds a Master of Business Administration degree from the University of Alberta and a Bachelor of Arts degree from Western University. He has completed the Financing, Governance and Compliance for Public Companies course at Simon Fraser University.
Candace Ryan – Chief Financial Officer
Candace Ryan brings over 15 years of experience in accounting, payroll, human resources, financial planning, and financial reporting and analysis. Most recently, she was financial controller in a publicly traded national brand retail start-up. Her organization and hands-on, real-time approach to accounting has made her an asset to the organizations she has contributed to. Candace is a legacy certified general accountant and a current member of the Chartered Professional Accountants.
Cecil Horwitz – Head of Business Development, Sustainability & Carbon Credit Strategy
Cecil Horwitz brings over 20 years of experience in business development, operations, and team leadership to his role at HEMPALTA. He spearheads the company’s sustainability initiatives, including its contributions to the voluntary carbon market and the scaling of biochar as a climate solution. With a passion for farmers, culture, and customers, Horwitz is uniquely skilled at translating vision into actionable results, always guided by clear goals and metrics. His leadership is grounded in values of honesty, respect, and hard work, which have enabled him to build strong, collaborative teams that deliver exceptional outcomes.
Brittany McKell – Agricultural Partnerships Manager
Brittany McKell brings energy and dedication to overseeing production, logistics and procurement in the Company’s operations. Her experience in the hemp industry includes roles in sales and marketing and she has been a key contributor to new product creation. McKell holds a marketing degree from Mount Royal University and a business administration diploma from SAIT.
Samantha Down – Head of Marketing
Adaptable and creative, Samantha Down uses her visual storytelling to inspire cult branding for companies where she works. She oversees all sales and marketing activity for HEMPALTA. Previously, she held marketing roles with two national consumer product retailers. Down holds a business administration degree from Mount Royal University and finance diploma from SAIT.
Adrian Stokes – Director
Adrian Stokes has over two decades of experience in financial services. He currently leads ADL Private Office in Monaco, a private family office for the majority partner of Fullbrook Thorpe Investments LLP. Previously, he held various roles at Barclays Wealth & Investment Management. Stokes holds a double major in business from Greenwich Business School in London.
Craig Steinberg – Director
Craig Steinberg has been a director of HEMPALTA since August 2021. He is a practicing lawyer with Steinberg Law and is the designated mortgage broker for Fortius Mortgage Corporation. From August 2017 until July 2021, Steinberg served as a director of Inner Spirit Holdings which was listed on the Canadian Securities Exchange.
Dan Balaban – Director
Dan Balaban is the executive chair and CEO of Greengate Power Corporation, a Canadian renewable energy company. Before joining Greengate, Balaban co-founded and served as president and CEO of Roughneck.ca, which provides software solutions for the oil and gas industry. Earlier in his career, he worked as a management consultant at top-tier firms, including EY and PwC.
Russell Wilson – Director
Russell Wilson is the vice-president of business development with Prairie Merchant Corporation, a private investment company that focuses on real estate, energy, agriculture and sports franchises. He sits on the board of Indiva and continues to actively manage a portfolio of cannabis-related investments. Wilson holds a Master of Business degree from Queensland University of Technology.
Michael Ginevsky - Corporate Secretary
Michael Ginevsky is a partner at DS Lawyers Canada LLP, where he focuses primarily on capital markets, mergers and acquisitions, corporate governance, and securities regulatory compliance. Ginevsky received a Bachelor of Commerce degree from the University of British Columbia and Juris Doctor from the University of Alberta. He was previously corporate secretary of Inner Spirit Holdings, a cannabis retailer listed on the CSE.
Gassaat Permit Approved Landmark MOU Signed with Tunisian Government and EBRD
Gassaat permit approved
- The Consultative Committee of Mines (CCM) has approved the Gassaat Phosphate Exploration Permit (100% PhosCo).
- Gassaat encapsulates the Chaketma Phosphate Mineral Resource Estimate of 146Mt @ 20.6% P2O51 as well as additional phosphate targets immediately north of the deposit.
- Gassaat is key to developing Tunisia’s Northern Phosphate Basin with formal grant now pending subject to final approval by the Ministry of National Defence and publication in the gazette.
- Gassaat project is aligning on the social agenda of the Tunisian government and aim to include local communities as partners of the project through community companies.
- The news comes following the CCM approval of nearby Sekarna (also 100% PhosCo) last month, the first ever phosphate permit authorised at 100% to a foreign investor, where formal gazetting is expected imminently.
MOU signed with Tunisian Government and EBRD
- PhosCo has signed a non-binding MoU with the Tunisian Ministry of Industry, Mines and Energy, and the European Bank for Reconstruction and Development (EBRD) to collaborate on exploring and developing Tunisia’s Northern Phosphate basin hub, as well as study processing technology to convert phosphogypsum into inert materials.
- The MOU also has a strong focus on enhancing regional development through well structured support to communities and Small and Medium Enterprises (SMEs).
- The pioneering agreement signed by the Tunisian government is a first for the country’s phosphate industry and will see PhosCo work with EBRD for financing of the feasibility study and development of a financing package for the Project.
MOU signing ceremony at the Ministry of Industry, Mines & Energy.
PhosCo Managing Director, Taz Aldaoud commented:
“We are deeply honoured by the trust placed in us by the Tunisian government, as evidenced by the approval of PhosCo’s Gassaat permit application and the signing of the MOU with PhosCo and EBRD. This marks a significant milestone in advancing Gassaat and Tunisia’s Northern Phosphate Basin.
The Gassaat permit is pivotal in realising our vision for a regional phosphate processing hub. The MOU formalises our excellent relationship with EBRD and the Tunisian Government, establishing a collaborative framework to support the region’s development. We’re already seeing the immediate benefits of this partnership through meaningful cooperation between all parties involved.
We’re particularly mindful of the critical role phosphate plays in addressing global food security concerns. This project not only aligns with that crucial need but also emphasises our commitment to positive community impact. Local support and meaningful community participation are cornerstone elements of our strategy to develop Tunisia’s Northern Phosphate Basin.
This collaborative effort, backed by the Government and EBRD, underscores our shared commitment to responsible development that benefits the local community, the region, and contributes to global food security. We’re excited about the potential this project holds and are committed to its successful and sustainable implementation.”
Click here for the full ASX Release
This article includes content from Phosco Limited, 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.
Quarterly Report for the Period Ended 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.
Click here for the full ASX Release
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.
WOA Relocates Headquarters & Enhances German Facility Utilisation
Highlights
- Wide Open Agriculture has relocated its head office and R&D facility to a new location in Leederville, Western Australia, enhancing access to commercial services and significantly reducing costs
- The Company has successfully completed two toll treatment trials at its German facility, producing high-quality plant-based protein products
- WOA is actively exploring potential fee-based toll treatment partnerships to strengthen collaboration within the plant-based protein sector, and increase utilisation of its German facility
- The Company remains focused on streamlining operations to support long-term growth and financial sustainability
WOA Germany employees preparing for a toll production run
Relocation and Cost-Saving Initiatives
The Company 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 review of corporate costs as part of its cost reduction efforts.
WOA is currently reviewing options to relocate the pilot plant to a new facility.
German Facility Update and Operational Review
WOA has conducted a comprehensive review of its German production facility operations and costs, with the goal of improving operational efficiency and to address facility underutilisation to date, caused by a long procurement cycle in the food industry. In line with this review, the Company successfully 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.
The Company is actively pursuing additional fee-based toll treatment services and fostering commercial relationships with other plant-based protein companies, while it maintains a strict focus on facility costs.
Yaxi Zhan, Non-Executive Chair said; "While the Company continues to demonstrate its capabilities in the plant-based protein sector and build its customer pipeline for the Grimmen facility, we will continue to optimise our operations and reduce costs where possible. Our ongoing focus will be on efficiency as we seek to deliver long-term value for our shareholders.”
Click here for the full ASX Release
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.
Preliminary Final Report for the Year Ended 30 June 2024 Appendix 4E
RESULTS FOR ANNOUNCEMENT TO MARKET
Financial Commentary and Operations
The Company recorded a loss after tax for the year ended 30 June 2024 of $12.7 million, which was a reduction in loss to the prior year of approximately $1.9 million.
The Company underwent a transition during the financial year, with the divestment of its Dirty Clean Food business in order to reduce costs and to focus on commercialising its next generation plant-protein product portfolio based on property IP.
As part of this strategic focus, the Company purchased a state-of-the-art manufacturing facility located in Germany, including technical infrastructure and staff. This facility has the ability and capacity to produce multiple plant proteins at commercial scale. Further, the Company has undertaken a review of costs, in order to preserve funds from its capital raising announced in May 2024, while it continues market development and sales efforts for its lupin and plant-proteins.
Dividends
No dividends were paid during the financial year (2023: Nil).
NET TANGIBLE ASSETS
DISCONTINUED ENTITIES / OPERATIONS
The Company disposed of its fully owned subsidiary, Dirty Clean Food Pty Ltd (“DCF”) on 23 April 2024 as part of the sale of the ‘Dirty Clean Food’ business during the financial year.
Contribution of DCF to the Company’s (loss) from ordinary activities before income tax during the period was $7,280,903.
ACCOUNTING STANDARDS
The financial statements cover Wide Open Agriculture Ltd and its subsidiaries as a consolidated entity (Group). Wide Open Agriculture Ltd is a company limited by shares, incorporated and domiciled in Australia and are dated 1 September 2024.
This preliminary final report Wide Open Agriculture Ltd has been prepared in accordance with ASX Listing Rule 4.3A and the disclosure requirements of ASX Appendix 4E.
This report is to be read in conjunction with any public announcements made by the Company during the reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 and Australian Securities Exchange Listing Rules.
The preliminary final report has been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
AUDIT REPORT
The preliminary final report is based on financial statements which are in the process of being audited.
Click here for the full ASX Release
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.
Wide Open Agriculture Investor Kit
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