WOA secures $1.0 million placement to fund contract manufacturing push
Wide Open Agriculture (ASX: WOA) has received firm commitments for a $1.0 million placement of 100 million new shares at $0.01 per share, with some issues subject to applicable shareholder approvals. The capital is aimed at contract manufacturing validation, commercial development and the planned resumption of lupin ingredient supply.
Backing comes from major existing shareholders, alongside new sophisticated and professional investors. The company said the placement supports its transition to an asset-light contract manufacturing model, intended to reduce fixed manufacturing costs and resume commercial supply of its proprietary lupin ingredients to customers in global food, beverage and personal care markets.
Key highlights from the announcement:
- $1.0 million placement through firm commitments for 100 million new shares
- Issue price of $0.01 per share
- $129,000 of proposed director and management share participation in lieu of accrued fees and salary, subject to shareholder approval
- $1.1 million cash held at 30 September 2026
- Anticipated $1.2 million R&D tax incentive rebate (net of costs) in December 2026
Craig Swan, CEO
“We are very grateful with the support received from our major shareholders and welcome the new investors joining WOA at this important stage in the Company’s development.”
“This Placement strengthens our financial position as we progress the transition to an efficient, asset-light business model…”
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Placement terms and who is participating
The Placement comprises new fully paid ordinary shares (“New Shares”) issued at a discount to recent trading levels, with attaching options for investors.
| Term | Detail |
|---|---|
| Shares | 100,000,000 new fully paid ordinary shares |
| Issue price | $0.01 |
| Discount to last traded price of $0.011 | 9.09% |
| Discount to 15-day VWAP of $0.0105 | 4.76% |
| Attaching options | One for every two New Shares, exercise price $0.02, 12-month term from issue date |
The Placement is structured in two tranches:
- The initial tranche of 87,100,000 New Shares will be issued without shareholder approval, comprising 65,444,686 under the company’s Listing Rule 7.1A capacity and 21,655,314 (together with attaching options) under its Listing Rule 7.1 capacity.
- The second tranche covers the $129,000 of proposed director and management participation in lieu of accrued fees and salary, subject to approval at a general meeting of shareholders.
- New Shares will rank equally with existing fully paid ordinary shares.
- Bridge Street Capital Partners acted as Lead Manager to the Placement, which is not underwritten.
Contract manufacturing strategy and funding position
Four partners in feasibility assessment
WOA is progressing technical and commercial feasibility assessments with four prospective manufacturing partners, each with a signed framework agreement. The current phase includes manufacturing validation, assessment of production economics and evaluation of each partner’s capabilities to manufacture WOA’s proprietary lupin protein and other specialty ingredients.
The framework agreements with manufacturers in Vietnam, India and Indonesia carry enforceable IP protections that run for five years after termination, and the shortlist was drawn from more than 95 screened manufacturers.
Subject to satisfactory technical and commercial outcomes, WOA intends to select a preferred partner and negotiate a definitive manufacturing agreement. The company is targeting resuming commercial production via a contract manufacturing partner in Q2 of 2027.
The company described establishing commercial manufacturing arrangements as an important step towards resuming supply to existing customers and progressing new commercial opportunities across international markets.
WOA believes its lupin protein offers a differentiated combination of taste, nutrition, functionality and sustainability. It sees opportunities to replace traditional protein ingredients across a broad range of food and beverage applications.
Where the funds go
An asset-light model relies on partners to manufacture products rather than the company owning and running its own production facilities. WOA’s stated aim is to reduce fixed manufacturing costs through this approach.
The company’s indicative plan allocates available funding as follows:
| Use of funds | $ million |
|---|---|
| Contract manufacturing, trials and initial ramp-up | 0.7 |
| Sales and marketing | 0.7 |
| Process development | 0.7 |
| Working capital, corporate costs and Placement costs | 1.2 |
| Total indicative expenditure | 3.3 |
The plan is indicative and draws on the Placement’s net cash proceeds, the $1.1 million cash held at 30 September 2026 and the anticipated $1.2 million R&D tax incentive rebate (net of costs). It is subject to the final net cash proceeds, receipt of the rebate, available cash and the timing of operational activities, and the company may adjust allocations as commercialisation progresses.
WOA said it will continue to prioritise capital preservation while maintaining a disciplined approach to operating costs.
What happens next for WOA
The company’s indicative timetable and milestones are:
- ASX announcement and trading recommences: 13 November 2026.
- Settlement of the Placement: 19 November 2026.
- Allotment of New Shares and attaching options: 20 November 2026.
- R&D tax incentive rebate: anticipated receipt in December 2026.
- General meeting of shareholders to approve the second tranche securities (shares and attaching options): late December 2026 or early January 2027.
- Resumption of commercial production via a contract manufacturing partner: targeted for Q2 of 2027, subject to satisfactory technical and commercial outcomes.
The company noted the timetable is indicative and subject to change.
WOA’s industrial-scale plant study sits behind the contract model as a longer-dated option, with a 10,000tpa facility modelled but unfunded and first production no earlier than 2031.
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