referring to “advanced confidential negotiations” with a potential production partner to utilise their existing manufacturing site to produce commercial quantities of Buntine Protein
resulted in a non-binding Memorandum of Understanding (‘MOU’) with Saputo Dairy Australia Pty Ltd (‘SDA’), which is consistent with the description by the Company, dated 6 October 2023
The Company confirms that no commercial production will occur under the MOU and no costs incurred
initial term is five years, with a five year extension term subject to mutual agreement
WOA will pay a fee per tonne of production of Buntine Protein®, based on fixed and variable costs of production.
The arrangement will also be subject to a minimum annual fee.
WOA will also be responsible for purchasing equipment specific to its manufacturing process and installing this equipment at the premises of its partner and be responsible for the design of the end- to-end process to ensure the product meets specification.
At this stage, these costs are not known
Should the parties choose to proceed with a Definitive Agreement, commercial production is anticipated to commence in calendar year 2025
The parties are required to enter into a Definitive Agreement by 15 December 2023 or such longer period as the parties may mutually agree in writing. WOA will update the market if and when this occurs.
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