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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.
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 has the capacity to 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.
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
- Corporate info
- Insights
- Growth strategies
- Upcoming projects