Key Highlights

  • A $1.0 million Placement of 100 million new shares at $0.01 each is subject to applicable Shareholder approvals.
  • Directors and management have proposed $129,000 of share participation in lieu of accrued fees and salary.
  • The company held $1.1 million in cash at 30 September 2026 and expects about $1.2 million from an R&D tax incentive rebate in December 2026.
  • Wide Open Agriculture is targeting a resumption of commercial production through a contract Manufacturing partner in Q2 2027.

Wide Open Agriculture Ltd (ASX:WOA) has secured commitments for a $1.0 million placement as it moves toward an asset-light operating model built on contract manufacturing. The lupin-based ingredient company produces plant proteins, fibres and oil for customers in food, beverage, cosmetics and nutraceutical markets. The new Capital is intended to fund contract manufacturing validation, commercial development and the planned return of lupin ingredient supply.

What the Placement Involves

The placement comprises 100 million new fully paid ordinary shares priced at $0.01 each, representing a total issue value of $1.0 million before costs. The issue price is a discount of 9.09% to the last traded share price of $0.011 and a discount of 4.76% to the 15-day volume-weighted average price of $0.0105. Investors will receive one attaching option for every two new shares, with an exercise price of $0.02 and a term of 12 months from issue.

The placement was offered to sophisticated and professional investors, and the company has said it attracted support from major existing shareholders as well as new participants. Directors and management have proposed $129,000 of share participation in place of accrued fees and salary. That second Tranche requires approval at a general meeting of shareholders expected in late December 2026 or early January 2027. The first 87.1 million shares will be issued within the company’s existing placement capacity under Listing Rules 7.1 and 7.1A. Bridge Street Capital Partners acted as lead manager, and the placement is not underwritten.

Shifting to a Contract Manufacturing Model

Wide Open Agriculture is assessing four prospective manufacturing partners with which it has signed framework agreements. The current phase covers manufacturing validation, an assessment of production Economics and an evaluation of each partner’s ability to make the company’s proprietary lupin protein and other specialty ingredients. Subject to satisfactory technical and commercial outcomes, the company intends to select a preferred partner and negotiate a definitive manufacturing agreement.

Management has described the transition as a way to reduce fixed manufacturing costs and establish a more efficient and scalable Business model. The company’s stated priority is to secure a suitable contract manufacturer and resume Supply to existing customers, while pursuing broader commercial opportunities for its lupin protein, fibre and oil across international markets. The company is targeting a return to commercial production through a contract partner in the second quarter of 2027. That timetable depends on the outcome of technical and commercial assessments that are still under way.

Cash Position and Planned Spending

At 30 September 2026, the company held $1.1 million in cash. It anticipates receiving approximately $1.2 million under the R&D tax incentive program, net of costs, in December 2026. Management has said these funds, together with the net proceeds of the placement, are intended to support contract manufacturing trials, process development, commercial activities and working capital.

The indicative use of funds totals $3.3 million. Contract manufacturing trials and initial ramp-up, sales and marketing, and process development are each allocated $0.7 million. The remaining $1.2 million covers working capital, corporate costs and placement costs. The company has stated that the plan is indicative and may change depending on the final net proceeds of the placement, the timing of the R&D rebate and the pace of commercialisation. Settlement of the placement is indicatively set for 19 November 2026, with allotment of new shares and attaching Options on 20 November 2026.

Closing Perspective

The placement adds funding at a stage when the company’s route back to commercial supply runs through a manufacturing partner it has not yet selected. The company’s timetable for resuming production in the second quarter of 2027 remains tied to validation work, contract negotiations and shareholder approvals. Future disclosures are likely to focus on the selection of a preferred partner, the outcome of the second tranche vote and any revisions to the indicative spending plan as the trial program progresses.