Foresta Group Holdings, a pine chemicals manufacturer, noticed an increase in their shares (ASX:FGH) by as much as 21.4% to A$0.017.

If the gains hold, this would mark their best day since May 18.

The company’s stock also reached its highest level since July 31.

Foresta Group says its unit, Foresta NZ, has entered an offtake agreement with NZ-based Tailored Energy Resources, which includes a supply of up to 400,000 tonnes per annum of torrefied wood pellets.

The initial term of the agreement is for 8 years and supply of around 2.4 million tonnes of torrefied wood pellets in total.

As of the last close, FGH had dropped 30% year to date.

Foresta Group is a company which specializes in making pine chemicals.