Shares in Fiji Kava (ASX: FIJ) rose almost 61 per cent today after the Australian-Fijian medicinal health company announced a major agreement with Blackmores (ASX: BKL) subsidiary BioCeuticals.
Under a non-exclusive licence agreement the two partners will develop a co-branded product in Australia and New Zealand, based on FIJ's noble kava extract and BioCeuticals' herbal blend AxioCalm.
Fiji Kava will supply BioCeuticals with its noble kava via an agreement with Pathway International.
Fiji Kava founder and CEO Zane Yoshida (pictured) says this is another milestone for the Brisbane-based company to not only increase the availability of its noble kava on both sides of the Tasman Sea, but is a strong endorsement from a leading healthcare provider.
"In particular, we are proud to support BioCeuticals with our water extracted Noble Fiji Kava, as allowed by the TGA in Australia," says Yoshida.
"We are able to deliver this to BioCeuticals and our other partners through our vertically integrated supply chain, guaranteeing a sustainable and 100 per cent traceable supply of unadulterated Noble Fiji Kava.
"The agreement does not specify any minimum quantities, however Fiji Kava will continue to scale-up its production in Fiji to produce required inventory to meet the growing demand from the BioCeuticals licence agreement and other recent business development advancements such as ranging in Coles Supermarkets nationally."
In New Zealand the company has a cornerstone retail agreement Green Cross Pharmacy, and has expanded its e-commerce presence on Amazon in the US while exploring opportunities to access Chinese marketplaces.
FIJ shares were trading at 14 cents each, up 60.92 per cent, when the ASX closed today.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
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