Shares in Food Revolution Group have rocketed after the food and beverage processor said it has gained a foothold in China with a move to distribute canola oil in the country.
Food Revolution Group's ASX-listed shares jumped as much as 30 per cent after it announced a memorandum of understanding with Beijing-headquartered Sinopec to negotiate a distribution agreement.
Sinopec is the world's largest oil refining, gas and petrochemical conglomerate, with more than 35,000 petrol and convenience stores in China.
The relationship could lead to the distribution of other functional foods and beverage products, Food Revolution Group said in a statement on Monday.
"This is a great relationship for FOD to build on, not only for distribution of canola oil but also for our functional food and beverage range over the longer term," Food Revolution Group chairman Norman Li said.
"A landmark deal such as this will put FOD on the map in China and position the company to generate further distribution deals with large Chinese companies."
Food Revolution Group expects to receive the necessary regulatory approvals and to start canola oil distribution in early 2019.
Shares in the company rose as much as 30 per cent to 15.5 cents.
At 1200 AEDT, they had fallen back slightly but were still up 2.0 cents, or 16.7 per cent, at 14.0 cents.
Food Revolution listed on the Australian Securities Exchange in February 2016 through a reverse takeover of West Australian minerals explorer Crest Minerals.
