Ecofibre's share price surged 50% after the company revealed a three-year supply deal with sportswear giant Under Armour.
The ASX-listed business will deliver yarn to the American company via its Hemp Black division, with the agreement projected to produce annual revenue of A$9m at full production capacity.
Chief executive Eric Wang said: "When Ecofibre announced our strategic review earlier this year we advised that one of the key opportunities for Hemp Black would be to secure new performance yarn clients.
"The outstanding technical capabilities of the team enables us to work with tier-1 clients on large-scale opportunities."
Under Armour will finance US$4.5m worth of manufacturing equipment required under the arrangement.
Ecofibre also disclosed a second commercial agreement, through which Hemp Black will produce a sustainable biodegradable product for US-based foam packaging company Cruz Foam. That deal is expected to generate annual revenue of A$3m, Ecofibre said.
The announcement of both agreements pushed Ecofibre's shares up by nearly 50% to A$0.250c.
Alongside the deal news, Ecofibre published its fourth quarter financial results, showing revenue up 7% year-on-year to A$7.8m, though down 5% from Q3 after a $1.3m credit was issued to customers following seed being damaged during transit to the US.
Customer receipts for the 12 months to June totalled $33.9m.
Cash used in operating activities came in at just over $1m during Q4, bringing the FY23 full-year deficit to $6.9m.
Across its divisions, Ananda Health posted Q4 revenue growth from $3.4m to $3.7m, while Hemp Black rose from $3.4m to $4.9m.
Ananda Food recorded an undisclosed decline, attributed to the credit issued over the damaged seed sales.
At the close of June, Ecofibre held cash and cash equivalents of $7.3m.
