Why the Australian Primary Hemp (ASX:APH) share price is up 5%

The Australian Primary Hemp Ltd (ASX: APH) share price is on the move following the announcement of a distribution agreement. Here are the details.

| More on:
rising asx share price represented by woman jumping in the air happily

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Australian Primary Hemp Ltd (ASX: APH) share price is on the rise following the announcement of a new distribution deal.

At the time of writing, the company’s shares are swapping hands for 39 cents, up 5.41%.

What did Australian Primary Hemp announce?

Investors are sending Australian Primary Hemp shares higher after digesting the company’s latest positive update.

According to this morning’s release, Australian Primary Hemp secured its largest retail distribution agreement with Coles Group Ltd (ASX: COL).

Under the deal, the supermarket giant will range 5 additional Mt. Elephant products from Australian Primary Hemp. It is expected that the new inclusions will be available for purchase in stores from July 2021.

Australian Primary Hemp estimates that the agreement will generate roughly $3 million in revenue per year.

The latest news follows the successful relationship between both parties. In early March, Australian Primary Hemp signed its first retail distribution agreement with Coles to stock its Mt. Elephant ‘mylk’ hemp and oat milk range.

Australian Primary Hemp managing director and CEO Neal Joseph commented:

APH’s Mt. Elephant brand was developed to focus on capturing the demand for high-quality, plant-based ‘superfood’ products – with Australian-farmed hemp used in all our products.

This latest agreement with Coles represents APH’s largest retail distribution agreement with any retail partner, and we are proud to see Coles recognise the Mt. Elephant product range. We look forward to further potential agreements in the future as we further our Company’s development in becoming a producer, manufacturer, and distributor of premium hemp-based products.

Australian Primary Hemp share price snapshot

Over the last 12 months, the Australian Primary Hemp share price has gained around 190%, with year-to-date up 17%. The company’s shares reached a multi-year high of 62 cents earlier this year, before treading lower.

On valuation grounds, Australian Primary Hemp commands a market capitalisation of approximately $27 million, with 75 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Investor sitting in front of multiple screens watching share prices
Share Market News

5 things to watch on the ASX 200 on Thursday

The ASX 200 is expected to have a better day on Thursday...

Read more »

Two hands being shaken symbolising a deal.
Mergers & Acquisitions

How many global mega deals involved ASX 200 shares in the first half of 2022?

Deal making among ASX 200 shares helped drive a 25.4% increase in M&A activity in Australia in the first half…

Read more »

Top 10 blank list on chalkboard
Share Market News

Here are the top 10 ASX shares today

Here are your top 10 biggest gainers in the ASX 200 on Wednesday.

Read more »

a man peers between two large piles of papers and files with a wide-eyed, wide-mouth look of dread at the amount of work he has to do.
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Wednesday

We take a look at the most traded ASX 200 shares by volume today.

Read more »

workers stand over a large spool of copper pipe.
Share Market News

ASX copper shares in the red as copper price sinks to 19 month low

Copper prices fell in global markets overnight.

Read more »

Man with rocket wings which have flames coming out of them.
Share Market News

EML share price leaps 16% on Spanish government stimulus contract

EML shares are on fire on Wednesday...

Read more »

Share Market News

ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump

The ASX 200 is having a difficult day due to weakness in the mining sector...

Read more »

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Wednesday

The ASX 200 looks set to have a tough day on Wednesday...

Read more »