Wide Open Agriculture is set to become the world's largest producer of lupin protein, after raising $6.2 million to cover its $4.2 million acquisition of Germany based company Prolupin.
WOA received binding commitments from domestic and international institutions, high net worth investors and WOA directors to raise A$6.2 million to pay for Prolupin's assets.
WOA recently entered into an asset purchase agreement with Prolupin GmbH, opening up commercial opportunities in Europe.
The two-tranche placement plan will be followed by the launch of a Share Purchase Plan (SPP) intended to raise an additional A$1.5 million.
The acquisition is subject to approval by a meeting of Prolupin's creditors to be held on 18 October 2023, and the consent of specific creditors named under the asset purchase agreement between WOA and Prolupin GmbH (Prolupin) dated 6 October 2023.
Tranche 1
WOA will issue approximately 30,572,740 Placement Shares to sophisticated and professional investors to raise approximately A$6.1 m using the Company's existing placement capacity.
Tranche 2
WOA proposes to issue 575,000 Placement Shares to the Company's Directors (and/or their respective nominee/s) to raise approximately A$115,000. The issue of the Tranche 2 Placement Shares to the company's directors is subject to shareholder approval at WOA’s next AGM.
Redefining the protein landscape
With more than 25 years’ experience, Prolupin is based in Germany and specialises in lupin protein manufacturing. With an initial production capacity of 500tpa, its facility is expected to achieve 1,000tpa production of Buntine Protein through an additional modest investment within one to two years.
WOA confirmed there are no in-country regulatory requirements to operate the facility in Germany. The acquisition will give WOA an immediate operational footprint in Europe with a state-of-the-art production facility and accelerate our timeline to commercial scale production and Buntine Protein’s global launch.
The facility is expected to generate significant positive cash flows to fund future investment in Germany and at the site of our production partner in Australia.
WOA CEO Jay Albany said the acquisition was set to redefine global protein production.
“I would like to extend gratitude to all our investors who have shown immense faith in our vision and have supported us in this capital raise.
This acquisition is not just a transaction, but a pivotal moment in our journey. The asset purchase agreement between Wide Open Agriculture and Prolupin is set to redefine the landscape of protein production globally, positioning us as leaders in the lupin protein market,” said Albany.
The Company has received firm commitments to raise A$6.2 million through the issue of 31,147,740 new fully paid ordinary shares in the company. Canaccord Genuity (Australia) Limited and Euroz Hartleys Limited acted as joint lead managers to the placement.
