Lupin protein company, Wide Open Agriculture (WOA), has started winding down its German production facility as it shifts to a contract manufacturing model, with the ASX-listed business ending the June quarter with $1.27 million in cash and roughly 2.1 quarters of funding.
The company’s Q4 FY26 report details progress against its “Building Better Economics” strategy, announced shortly after quarter end, which sets out a four-stage pathway away from owner-operated production in Germany towards a lower cost, capital-light model.
The stages cover winding down the German facility to cut overheads and cash burn, transitioning to contract manufacturing targeting an initial 500 to 1000 tonnes per annum of lupin protein isolate, commercialising lupin oil and fibre alongside the isolate under its whole-of-seed strategy, and longer-term planning for a dedicated 10,000-plus tonne per annum facility, subject to a pre-feasibility study, funding and board approval.
WOA said the Grimmen facility had fulfilled its purpose as a commercial-scale proof of concept, validating its proprietary processing technology, securing regulatory approvals including China market access, and establishing initial customer relationships. However, the plant’s size, elevated EU energy and operating costs, and the fact it wasn’t optimised for integrated whole-of-seed processing meant it was no longer consistent with building a scalable, profitable business.
Facility idled, CMO search underway
During the quarter, WOA completed its remaining contract production of pea protein, concluded tolling negotiations, and ran a production trial of lupin protein isolate using an alternative processing technology. After quarter end it began idling the facility, including exiting the lease and standing down the production team, and has started selling surplus plant equipment and liquidating the German entity.
The search for contract manufacturing partners has produced a list of around 90 companies, with 12 non-disclosure agreements signed and non-binding term sheets under negotiation. The company cautioned that no binding agreements have been entered into and there is no certainty the discussions will result in a definitive arrangement. It is targeting execution of a contract manufacturing partnership this year.
The wind-down is expected to leave no material ongoing costs after December 2026, with the process targeted for completion by mid-2027.
Curtin royalty simplified
WOA also agreed improved royalty terms with Curtin University under its exclusive global licence for its lupin protein technology, announced on 25 May. A single flat royalty of 3.5 per cent of net sales replaces the previous tiered structure, which carried a higher effective rate at higher product values, while the minimum annual royalty was reduced to $50,000. The global scope, exclusivity and other material terms of the licence, originally granted in May 2020, are unchanged.
Cash position and cost measures
Customer receipts for the quarter were $372,000, taking FY26 receipts to $1.05 million. Net operating cashflow was positive at $601,000 for the quarter, driven by a $1.69 million R&D tax rebate received on 9 April for eligible activities across its Australian and German operations in FY25. Operating cash outflow for the full year was $2.11 million.
Alongside the wind-down, the company has limited near-term marketing and R&D spend to activities supporting the transition, while the chair, several directors, the CEO, CFO and company secretary have agreed to defer all or part of their fees or salaries, proposed to be settled through shares on the same terms as any future equity raise, subject to shareholder approval.
The pre-feasibility study for the large-scale lupin ingredient facility is at final draft stage under board review. WOA said the study is already creating value by guiding discussions with prospective contract manufacturers and potential collaboration partners.
Board renewal
The quarter also saw a board renewal, announced on 5 May, with Justin Brown appointed non-executive chairman, succeeding Yaxi Zhan, and Jack Guidry appointed non-executive director, joining continuing directors Matthew Skinner and Vincent Lauwerier.
Beyond initial isolate production, WOA intends to optimise lupin oil processing, advance lupin fibre towards commercialisation, and develop high-value lupin fractions such as gamma-conglutin.
