Why the Wide Open Agriculture (ASX:WOA) share price is racing 12% higher

Wide Open Agriculture shares are rebounding strongly from yesterday's losses…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Wide Open Agriculture Ltd (AXS: WOA) share price is on the move today following an initial purchase order for its OatUP product.

At the time of writing, the regenerative food and farming company's shares are fetching for 89.5 cents, up 12.58%.

happy farming couple both with their thumbs up

Image source: Getty Images

Wide Open Agriculture welcomes OatUP sales

Investors are buying Wide Open Agriculture shares after the company secured initial distribution across the southern states.

In today's release, Wide Open Agriculture advised it has received its first OatUP purchase order from The Market Grocer. The products will be sent into New South Wales and Victoria for sale across its grocery portfolio.

Established in 2005, The Market Grocer is one of Australia's largest grocery wholesalers servicing both independent grocers and major independent supermarkets. The company offers consumers imported and local products packaged & distributed throughout the country.

The purchase order follows an initial trial that evaluated potential customer interest and market opportunities earlier this month. After a successful run, both companies agreed to partner up to launch Dirty Clean Food's OatUP across the southern states.

As such, The Market Grocer will be Wide Open Agriculture's first major distributor in the New South Wales market.

The OatUP product has been shipped to the designated facilities and is expected to be available for retail by late June.

Wide Open Agriculture stated that the latest update represents a lucrative opportunity with its first presence across the East Coast. Based on the significantly larger population in those states, sales could potentially accelerate.

Dirty Clean Food CEO, Jay Albany commented:

After a strong launch in Western and South Australia only six months ago, we are excited to have another wonderful partner expanding the availability of OatUP into the Eastern States. OatUP is the world's first regenerative and carbon neutral oat milk. This is a special distinction, which aligns with the values that underpin the larger trend of consumers evaluating a switch from dairy to plant-based milks.

About the Wide Open Agriculture share price

The Wide Open Agriculture share price has surged in the past 12 months, doubling in value. The company's shares reached an all-time high of $1.85 in August 2020 before moving in circles.

Based on today's price, Wide Open Agriculture presides a market capitalisation of roughly $84 million, with 93.6 million shares outstanding.

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

More on Consumer Staples & Discretionary Shares

A couple sits on the bed in their hotel room wearing white robes, both have seen the bad news on their phones.
Consumer Staples & Discretionary Shares

EVT flags FY26 EBITDA growth amid hotel strength and portfolio changes

EVT expects EBITDA growth for FY26, with hotels leading performance and ongoing portfolio upgrades supporting future results.

Read more »

Happy smiling young woman drinking red wine while standing among the grapevines in a vineyard.
Consumer Staples & Discretionary Shares

Why is everyone buying this beaten-down ASX wine stock now?

Execution will determine if this rally has legs.

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Consumer Staples & Discretionary Shares

Guess which ASX 200 stock is sinking 15% on CEO change

The online furniture retailer has announced a leadership change today.

Read more »

Woman customer and grocery shopping cart in supermarket store, retail outlet or mall shop. Female shopper pushing trolley in shelf aisle to buy discount groceries, sale goods and brand offers.
Broker Notes

Should you buy Woolworths shares for the 'steady dividends'?

A leading analyst provides his outlook for Woolworths rebounding shares.

Read more »

A close up of a casino card dealer's hands shuffling a deck of cards at a professional gambling table with the eager faces of casino patrons in the background.
Share Gainers

Why is everyone buying Tabcorp shares this week?

Here's what is driving the latest price momentum for Tabcorp shares, and what to expect next.

Read more »

A group of people clink wine glasses in an outdoor, late afternoon setting to celebrate the rising Treasury Wine share price
Consumer Staples & Discretionary Shares

Why are Treasury Wine shares rocketing 16% today?

Investors are piling into Treasury Wine shares on Wednesday. But why?

Read more »

A happy couple drinking red wine in a vineyard.
Consumer Staples & Discretionary Shares

Treasury Wine Estates improves depletions and unveils regional model

Treasury Wine Estates improves depletions momentum and announces a new global operating model alongside key leadership changes.

Read more »

Woman chooses vegetables for dinner, smiling and looking at camera.
Broker Notes

3 reasons to buy Coles shares today

A leading analyst expects Coles shares are well-placed to outperform. But why?

Read more »