Origin Agritech Ltd (NASDAQ:SEED) shares are trading higher Thursday after the company announced it signed purchase agreements to sell two feedstock companies 50,000 metric tons of its corn for RMB150 million ($23.58 million).
Origin said after giving samples of its corn to potential feedstock customers for nutritional content validation, the companies have started placing orders. Rather than just selling the seed, the company decided to contract grow the corn to capture a much higher share of the profitability of the finished product.
Origin said it's evaluating the impact of the purchase agreement on the company's financials and may soon update its guidance to reflect the new business opportunity.
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Origin is a Chinese agricultural technology company.
SEED 52-Week Range: $4.21 - $17.73
According to data from Benzinga Pro, the stock was up 16.9% at $8.53 at time of publication.
Photo: aitoff from Pixabay.
