The Wattle Health Australia Ltd (ASX: WHA) share price has fallen 2% in early trade after the company provided an update on its Blend & Pack acquisition.
What did Wattle Health announce this morning?
Wattle Health advised that following shareholder approval at the extraordinary general meeting (EGM) held yesterday for the proposed acquisition of 75% interest in Blend & Pack (B&P) from Mason Holdings, the company is now working towards completion of the acquisition.
As previously announced to the ASX on 2 July 2019, Wattle Health reached an agreement with Mason to extend the completion date to 31 July 2019.
As the company has now obtained shareholder approval for the acquisition, Wattle Health and Mason have agreed to further extend the completion date to 31 August 2019.
According to this morning's release, this extension will allow time for all parties involved in the acquisition to complete the required steps to give effect to the acquisition and satisfy the pre-conditions required for it to proceed.
Wattle Health did note that the acquisition involves multiple jurisdictions, and subsequently a higher level of complexity, which increases the length of the time required for the completion.
The company said that a further update will be provided to the market regarding the status of the acquisition as it proceeds in due course.
What's been happening to the Wattle Health share price?
The Wattle Health share price surged 4.35% higher on the ASX yesterday after the company provided its latest quarterly activities update, to pull back slightly this morning in early trade.
Despite reporting higher cash outflows and lower sales, positive updates from the quarter including the development of its Uganic brand were enough to send its share price surging higher.
Management said the company will be distributing fresh organic milk and organic A2 fresh milk in the first quarter of 2020 as it continues its operational expansion.
The company said its first delivery of organic A2 fresh milk is expected to be received in the first quarter of 2020 with volumes for FY20 expected to total 2.5 million litres, increasing to around 7.5 million litres in FY21 and growing each following year.
Despite surging higher yesterday, the Wattle Health share price remains at almost half its start-of-year valuation at $0.47 per share, while competitors including Bellamy's Australia Ltd (ASX: BAL) have seen their share prices climb higher.
