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

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

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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.

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