Hemp Black, a subsidiary of Australia-based Ecofibre, today signed a $9 million annual supply deal with Under Armour Inc, which will see the firm supply specialty yarn made from its trademarked eco6 hemp biochar to the global sports apparel brand, Business News Australia reports. Simultaneously, Hemp Black entered into an agreement with U.S.-based Cruz Foam to manufacture a sustainable, biodegradable packaging material for its customers. The initial three-year agreement includes expectations for annual revenue of $3 million at full production.
Both announcements coincide with the release of Ecofibre’s June quarter results, which reported a 46% year-on-year spike in revenue for Hemp Black at $4.9 million.
Ecofibre CEO Eric Wang told Small Caps that Cruz Foam is “an innovative company with patented technologies that will help revolutionize sustainable packaging in the U.S.”
“Hemp Black and Cruz Foam are committed to delivering sustainable product solutions for our customers, and we look forward to supporting [the company] as its business expands.”— Wang to Small Caps
Hemp Black’s eco6 hemp biochar is recognized as negative emission technology aimed at replacing petroleum-based products. The initial deal with Under Armour is for three years and includes the acquisition of $6.74 million in specialized manufacturing equipment to be financed by the sportswear company, according to Small Caps. The first machine will be commissioned in early 2024 while a second machine is expected to be acquired within the first 18 months of production. Annual revenue per machine at full capacity is expected to be around $9 million, the report says.
Wang told Small Caps that the deal with Under Armour falls into the company’s aspirations to “work with Tier 1 clients (such as Under Armour) on large-scale opportunities.”
Hemp for the eco6 line is grown in the U.S.
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