Tuesday, 7 March 2023
by Berkeley Lovelace
Wide Open Agriculture (ASX:WOA) has secured a financing agreement with National Australia Bank (ASX:NAB) for up to $12 million to support its growth objectives in order to manufacture plant-based beverages in Australia.
The company says the deal with NAB represents measurable progress of a stacked financing strategy for current and future capital projects, and includes access debt financing for up to $12 million, in order to manufacture plant-based beverages in Australia.
It is reported financing consists of $8 million corporate markets loan (CML), which can be deployed towards domestic production of oat milk, including Dirty Clean Food Oat Milk, as well as the company’s upcoming line of plant-based beverages combining oat milk and Buntine Protein.
“The access to debt funding will allow us to continue to grow our presence in plant-based food and beverages”
Funds will also be applied to overseas bills purchased facility, trade refinance facility, and invoice finance facility.
With the financing agreement now secured, Wide Open Agriculture announces it remains focused on continuing the advancement of its Buntine Protein enhanced oat milk beverages and expects to provide an update to the market on timing and costs of the project by the end of the fiscal year.
Commenting on the securing of funds, Wide Open Agriculture Chief Financial Officer Matthew Skinner said: “This uplift in available working capital will support the financing capability of the company in this time of market volatility and uncertainty. This will preserve shareholder value as we progress the commercialisation strategy of Buntine Protein whilst also enabling us to achieve the strategic growth of Dirty Clean Food through domestic manufacturing of our carbon neutral oat milk.”
Also speaking on the securing of funds, company Chief Executive Officer (CEO) Jay Albany added: “We are grateful to our friends and supporters at NAB as we pursue a stacked finance model for production of plant-based food and beverages. NAB is a supporter of our domestic production initiative for Dirty Clean Food’s carbon neutral oat milk. The access to debt funding will allow us to continue to grow our presence in plant-based food and beverages and follow through on our commitment to domestic production concurrent with our launch of Buntine Protein enhanced oat milks. WOA looks forward to a long and productive relationship with NAB as the company continues its growth trajectory.”
Wide Open Agriculture is an ASX-listed company which represents Australia’s leading regenerative food and agriculture company. The company’s innovative Dirty Clean Food brand markets and distributes food and drink products with a focus on conscious consumers in Australia and South-East Asia. Based in the Wheatbelt of Western Australia, Wide Open Agriculture operates under a ‘4 Returns’ framework and seeks to deliver measurable outcomes on financial, natural, social, and inspirational returns.
Dirty Clean Food’s oat milk is currently distributed across Australia, Singapore, Hong Kong, and Taiwan, with distributions agreements announced in Malaysia and Indonesia set to commence this year.