Shares in Ecofibre soared 50% after the company announced a three-year supply agreement with sportswear brand Under Armour.

The ASX-listed firm will supply yarn to the US company through its Hemp Black division in a deal expected to generate annual revenue of A$9m at full production.

Chief executive Eric Wang said: “When Ecofibre announced our strategic review earlier this year we advised that one of the key opportunities for Hemp Black would be to secure new performance yarn clients.

“The outstanding technical capabilities of the team enables us to work with tier-1 clients on large-scale opportunities.”

Manufacturing equipment of US$4.5m will be financed by Under Armour.

Ecofibre also announced a second deal that will see Hemp Black manufacturer a sustainable bio-degradable product for US-based foam packaging firm Cruz Foam. The agreement will generate annual revenue of A$3m, Ecofibre said.

News of the commercial arrangements saw shares climb almost 50% to A$0.250c.

Ecofibre also released its fourth quarter financial results with revenue rising 7% from the previous corresponding period to A$7.8, but down 5% from Q3 following a credit of $1.3m paid to customers after seed was damaged in transit to the US.

Receipts from customers for the 12 months to June hit $33.9m.

Cash used in operating activities was a little over $1m in Q4, taking the FY23 deficit to $6.9m.

Meanwhile, Ananda Health Q4 revenue climbed from $3.4m to $3.7, while Hemp Black grew from $3.4m to $4.9m.

Ananda Food suffered an undisclosed fall due to the damaged seed sales credit

Ecofibre had cash and cash equivalents of $7.3m at the end of June.

Steve has reported for a number of consumer and B2B titles over a journalism career spanning more than three decades. He is a regulator contributor to health journal, The Medical Republic, writing on...

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