Wide Open Agriculture responds to ASX query

Wide Open Agriculture Ltd (ASX: $WOA) has provided responses to specific queries raised by ASX in a letter dated 14 March 2024. The queries primarily relate to the company's April Announcement and its negotiations with Saputo Dairy Australia. The company's CEO, Matthew Skinner, has authorized and approved the responses.

Executive Commentary on ASX Query Responses

WOA considered the information about 'advanced confidential negotiations with a strategic production partner' to be materially price sensitive due to the alignment on proposed structure, indicative cost model, and intended documentation in a non-binding Memorandum of Understanding (MoU). The company believed that this information would influence investors' decisions. WOA clarified that the negotiations were incomplete, and the terms had not been finalized, justifying the use of 'advanced confidential negotiations' in the April Announcement. The company voluntarily disclosed the negotiations, unaware of Saputo's discomfort with public identification. WOA emphasized compliance with Listing Rule 3.1 and the accuracy of the April Announcement, citing the exception in LR 3.1A for incomplete proposals. The delay in MOU execution was attributed to the cancellation of a meeting and Saputo's focus on other transactions.

Summary of ASX Query Responses and Outlook

Wide Open Agriculture (WOA) has provided detailed responses to ASX's queries regarding the April Announcement and negotiations with Saputo. The company explained its rationale for considering the negotiations as materially price sensitive and the use of 'advanced confidential negotiations' in the announcement. WOA emphasized compliance with Listing Rule 3.1 and LR 3.1A, justifying the completeness and accuracy of the April Announcement. Looking ahead, WOA's outlook appears focused on finalizing the MOU with Saputo and pursuing its strategic goals for the Buntine Protein product and regenerative oat milk, while also considering potential sale or closure of the Dirty Clean Food business.