The Fiji Kava Ltd (ASX: FIJ) share price soared 89.66% higher this morning to reach an intraday high of 16.5 cents. This came before the Fiji Kava share price pulled back to 12.5 cents and was placed in a trading pause, pending a further announcement. The commotion resulted from the company's announcement it has signed a major agreement with BioCeuticals, a company owned by Blackmores Limited (ASX: BKL).
Fiji Kava produces natural 'noble kava' products for the complementary and alternative medicine market which is estimated to exceed US$210 billion by 2026 globally. It is focused on providing an alternative to prescription medications to promote sleep, soothe and calm the nerves, support muscle relaxation and relax the mind. The products are Theapeutic Goods Administration (TGA) and Food and Drug Administration (FDA) compliant.
Major agreement highlights
Fiji Kava has announced a non-exclusive licence agreement with BioCeuticals to develop a co-branded product for release in Australia and New Zealand. It will see BioCeuticals use the noble kava extract for its AnxioCalm product. AnxioCalm is a herbal medicine to support symptomatic relief of mild anxiety, tension and stress.
In addition, AnxioCalm products will be co-branded with Fiji Kava's 'Authentic Fiji Kava' trademark on each product sold. It will be made available through BioCeuticals' extensive network of qualified healthcare practitioners across Australia and New Zealand.
The agreement follows progress being made on Fiji Kava's commercial strategy to grow the availability of its Fijian noble kava. It now has cornerstone retail agreements with Coles Group Ltd (ASX: COL) supermarkets in Australia, Green Cross Pharmacy in New Zealand and has also expanded its eCommerce presence on Amazon.com in the United States. Additionally, it is exploring opportunities to access Chinese marketplaces.
Fiji Kava will supply BioCeuticals with noble kava via its agreement with Pathway International.
CEO comments
Understandably, Fiji Kava founder and CEO, Zane Yoshida, was pleased and said:
"This is another milestone for the company that will not only increase the availability of our noble kava in Australia and New Zealand, but is another strong endorsement by a leading healthcare provider of the quality and uniqueness of our Fijian noble kava…
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".
About the Fiji Kava share price
Before the pause in trade, the Fiji Kava share price was trading at 12.5 cents, representing a 43.68% increase in today's trade. It has a market capitalisation of around $12 million.
