The Wattle Health Australia Limited (ASX: WHA) share price may have been suspended for over a month, but that hasn't stopped the consumer foods company from making a market sensitive announcement this morning.
What did Wattle Health announce?
This morning Wattle Health announced that it has signed a collaboration agreement Nouriz Fine Food, backed by China Animal Husbandry Group. The latter is a Beijing-based State-Owned Enterprise.
According to the release, the agreement will see Nouriz and Wattle Health set up a 50/50 joint venture for the manufacture and sale of a range of certified Australian organic nutritional dairy products. These will be sourced from Wattle Health's other joint venture, the Corio Bay Dairy Group.
Wattle Health's executive chairman, Lazarus Karasavvidis, said: "With this agreement we have secured an exceptional and experienced partner to market and distribute in China a range of certified organic premium milk powder products. "
"Nouriz has a strong on the ground presence and deep experience in selling premium dairy products in the China market. With the Corio Bay spray drying facility on track for completion in the first half of 2020, the new JV will have access to a range of high-quality organic powders for sale into the China market," he added.
Why is the Wattle Health share price halted?
Wattle Health requested a suspension at the start of October pending an update in connection with its proposed acquisition of the majority stake in Blend and Pack. It is the largest independent nutritional manufacturing facility by volume and one of the first facilities to obtain CNCA accreditation.
The company's request suggested that its shares would be ready to return to trade on October 9. But one month later they look no closer to returning.
Elsewhere in the industry today, the A2 Milk Company Ltd (ASX: A2M) share price is up 0.5% and the Bubs Australia Ltd (ASX: BUB) share price has continued its slide and is down a further 1.5%.
