Wide Open Agriculture Limited (ASX:WOA) Clarifies Offtake and Distribution Agreement
Agreement Details
Wide Open Agriculture Limited (ASX:WOA) has signed an offtake and distribution agreement with Univar Solutions China. The agreement includes WOA assisting Univar in developing a market strategy and undertaking initial marketing activities, such as market testing and engagement with customers, wholesalers, and manufacturers in China.
Financial Impact
The agreement provides no immediate financial impact to WOA. Univar is required to engage with buyers in China to assess, promote, and establish a commercial market. WOA will not receive revenue until Univar agrees on a price and fulfills its obligation to purchase a minimum of 50 tonnes of product within twelve months after an initial six-month market preparation period. WOA will update the market once a price has been agreed with Univar.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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