Australia
July 29, 2016

• Abundant Produce completes third trial with global seed distributor, yielding independent confirmation of the company’s summer/spring cucumber line as a strong competitor to market leaders
• Corporate cash balance of more than $2.5 million at 30 June 2016, having constrained quarterly operational cash burn to $232,000

Abundant Produce Ltd ((ASX: ABT), “the Company”), Australia’s only listed plant breeding company, is pleased to present its June 2016 quarterly report on business progress.

Operational review

Since Abundant Produce listed successfully on the ASX in April, the Company has made significant progress toward its goals of gaining industry acceptance of its plant intellectual property and global distribution of its hybrid vegetable plant seeds.

As foreshadowed in the prospectus and post success of the ASX listing the Company announced plans to accelerate its plant research facilities and expanding their size by 174%, ahead of schedule and below budget, with new greenhouses custom designed to suit the Abundant Produce breeding program.

In late May, the Company announced that it would proceed to commercial trials of tomato seeds with optimal flavour, colour and heat tolerance with a range of interested parties. The Company is pleased to report that these trials are progressing promisingly. The tomato opportunity remains highly attractive: more tomatoes are consumed throughout the world than any other vegetable, and the Australian market, estimated at around 120 million seeds per annum, is marked by an increasing consumer preference for quality, flavourful produce.

Abundant Produce continues to make solid progress on its journey to commercialisation as per the schedule provided in its prospectus.

Middle East cucumber trials continue to succeed

Subsequent to the end of the June 2016 quarter, Abundant Produce has completed its third cucumber trial in Middle East with a globally-recognised seed distribution company. This trial tested Abundant’s cucumber seed performance in real-world ‘in-farm’ conditions against varieties that have led the market for the past 15 years.

The Company is pleased to announce that on the basis of yield of A-grade saleable product, this trial has independently verified and confirmed Abundant Produce’s summer/spring cucumber line as a strong competitor to the market leaders.
 
High yield at the beginning of harvest is the most important characteristic for cucumber farmers, and these trials have provided additional independent verification that Abundant Produce can provide this while also optimising taste, colour, crunch, lifespan and resistance to insects and disease.

The Company looks forward to continuing its trials with global players in the Middle East and Australia with a view to commercialising its intellectual property across several plant varieties.

Corporate review 

During the quarter, Abundant Produce successfully raised $3.5 million (before costs) in an oversubscribed initial public offer. This capital raising provided the funding for the Company to scale up its operations and accelerate plant development. The Company and its directors appreciate the support shareholders have shown in bringing Abundant Produce into a listed environment.

The Company’s Appendix 4C report, while covering cash receipts from customers in the period between joining the ASX on 26 April 2016 and 30 June 2016, also includes research and development costs incurred in the full year ending 30 June 2016.

Furthermore, the report excludes the impact of tax refunds from the Australian Government covering research and development conducted during the full year to 30 June 2016. Abundant Produce anticipates that these refunds should exceed $350,000.
 
The cash balance of the Company on 30 June 2016 was $2.512 million after June quarter operational cash burn of $232,000.

Click here for the full Quarterly Report
 

Website: http://abundantproduce.com/

Published: July 29, 2016