The Australian Primary Hemp Ltd (ASX: APH) share price is soaring on a positive update from the company. We take a closer look.
The post Australian Primary Hemp (ASX:APH) share price surges 7% on new deal appeared first on The Motley Fool Australia. –
The Australian Primary Hemp Ltd (ASX: APH) share price is performing strongly during early-afternoon trade. This comes after the company announced it has teamed up with Annex Foods, an Australian-owned health and snack food company.
At the time of writing, the premium plant-based and wellness company’s shares are fetching 45 cents, up 7.14%.
New partnership agreement
Australian Primary Hemp shares are on the move, with investors appearing upbeat about the company’s future prospects.
According to this morning’s release, Australian Primary Hemp has signed a 2-year exclusive agreement with Annex Foods. This follows close collaboration between the two companies in helping expand Australian Primary Hemp’s market presence.
Under the deal, Australian Primary Hemp will supply its Australian-grown and processed Hammer Milled Hemp Meal to Annex Foods. This will be used exclusively as an ingredient for products under Annex’s ‘Red Tractor’ brand. Red Tractor is a well-recognised health food brand that is sold across leading supermarkets in Australia, and overseas in ten countries.
The latest agreement is expected to generate revenue of $250,000 for Australian Primary Hemp over the next two years.
Australian Primary Hemp managing director and CEO Neale Joseph welcomed the new deal, saying:
We believe that this second agreement with Annex demonstrates our ability to meet customer needs in terms of product quality and customer service. The partnership with Annex continues our strategy of delivering great customer outcomes with Australian grown produce.
Annex managing director Kane Fetterplace went on to add:
Annex Foods is committed to using Australian grown ingredients in our products and is delighted to partner with progressive companies like APH. The agreement extends our range of Red Tractor Australian grown grains and seeds to include world class hemp products.
Australian Primary Hemp share price summary
Australian Primary Hemp shares have fared particularly well since the beginning of November 2020 and are up 150% in just 6 months. Looking at year-to-date performance, the company’s shares have gained around 29%.
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Motley Fool contributor Aaron Teboneras 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.