Wattle Health shares have climbed more than 22 per cent after the Australian company inked a deal with a Chinese distribution business to supply its infant formula range.
Under the agreement with Shandong Weihai Port International Trade Co, Wattle Health expects cumulative revenue of about $34 million over three years.
Wattle Health shares were up 20 cents, or 22.47 per cent, to $1.09 by 1253 AEST on Friday.
The company said an extension of the agreement and order volumes will be negotiated at the end of the current three-year deal.
The agreement with Shandong comes less than two months after Wattle Health secured a deal with International Supplies and Distribution Company (ISDC) to supply its infant formula in mainland China.
The revenue from the ISDC agreement is anticipated to be more than $100 million over three-years.
Executive chairman Lazarus Karasavvidis described the deal with Shandong as another important milestone for Wattle Health in order for the company to build its brand awareness in the Chinese market.
‘Following the agreement with ISDC and now with Shandong providing minimum volumes over a three-year period and the guaranteed revenue this brings allows the company to plan with confidence and further expand its distribution network and product offerings,’ Mr Karasavvidis said on Friday.