Australia's Ecofibre eyes best day on deal to supply yarn to Under Armour

Ecofibre

31/07/2023 04:59

(Adds details and milestones)
    ** Shares of hemp manufacturer Ecofibre Ltd  EOF.AX  pare
gains after rising as much as 105.9% to A$0.350, their highest
level since Nov 23, 2022
    ** Ecofibre stock on track for its best session on record,
if trend holds
    ** EOF says its specialty manufacturing division, Hemp
Black, has signed a memorandum of understanding with Under
Armour Inc  UAA.N  for supply of specialty yarn for apparel use 
    ** Initial term of supply agreement will last three years,
and provide EOF with A$9 mln ($6 mln) in revenue per machine on
full production
        ** Manufacturing equipment to be purchased by Hemp Black
for A$4.5 mln and financed by Under Armour
        ** A second machine is expected to be acquired to meet
requirements within 12-18 months, EOF said
    ** Stock down 26.1% YTD, as of last close 

    ($1 = 1.4981 Australian dollars)

 (Reporting by John Biju and Harish Sridharan in Bengaluru)
 ((John.Biju@thomsonreuters.com;))