Two listed health and skin care companies have entered into a partnership to develop a range of natural cannabidiol skin care products.
Skin Elements Limited (ASX: SKN) and Affinity Energy and Health Limited (ASX: AEB) have entered into a memorandum of understanding (MoU) to pursue the application of Affinity's algae biomass and oils, and cannabis oils, for use in Skin Elements' range of skin care products.
Both parties have significant expertise in their respective fields. Skin Elements is the company behind organic skin care products like Soléo Organics, PapayaActivis, Complete Esscience, and the Elizabeth Jane Natural Cosmetics Brand.
Affinity is one of the numerous cannabis players on the ASX at the moment, but also has expertise in algae-based nutraceuticals and animal feed and aquaculture markets.
Under the MoU, Affinity will supply its algae and cannabis oil formulations which Skin Elements will utilise to develop new products.
Skin Essence says that using the high quality algae and cannabis oil formulations in its skin care offerings will greatly enhance the benefits and outcomes of the products.
For example, the company says that algae is a strong source of anti-oxidants, is high in Omega-3 acids, key minerals and vitamins, and essential proteins.
"These have been proven to benefit skin hydration, regeneration, moisturisation, protection against UV, as well as improving the appearance of scarring, reducing free radicals and inflammation," says Skin Essence in its ASX release.
The company will also be looking forward to getting access to CBD to take advantage of its impact on receptors in the skin called the endocannabinoid system.
"One key targeted benefit of CBDs in skin care is high antioxidant protection to help fight signs of ageing," says Skin Essence.
"CBDs assist in reinvigorating the receptors which interact with your endocannabinoid system targeting increased moisture, improved elasticity and a more youthful appearance overall."
The company says that as a leader in the space it hopes to be able to tackle problems like acne and psoriasis.
"There are very few skin care companies in the world offering a combined all natural algae and CBD product," says Skin Essence.
The MoU is a non-binding agreement with an initial timeframe of 12 months and the capacity to extend subject to the agreement of both parties, making Affinity the exclusive supplier of both algae and CBD oils to Skin Elements.
The financial impact of the deal is yet to be determined.
Shares in Affinity are up 7.69 per cent to $0.014 per share at 10.41am AEST.
Business News Australia
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support