Australian Primary Hemp (ASX:APH) share price up 15% on PPE launch

The Australian Primary Hemp share price is higher today as the company announced that it will produce PPE for sale to retailers.

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The Australian Primary Hemp Ltd (ASX: APH) share price is up 15.63% today at the time of writing to 18.5 cents. This came after the company announced it has started production of hemp-based personal protective equipment (PPE) which would be supplied to retailers immediately.

What was in the announcement?

Investors are driving up the Australian Primary Hemp share price after the company announced the launch of a protective face mask which provides 99.9% microbial reduction. Additionally, the company launched a hemp-infused hand sanitiser.

Australian Primary Hemp stated that it developed its new products in response to concerns about the environmental effects of traditional face masks and other PPE products.

The company’s face masks are biodegradable and have been tested by certification company SGS. Its hand sanitiser has antiseptic and moisturising properties and, according to the company, meets World Health Organisation standards.

Australian Primary Hemp had advised that orders for its new PPE products currently stand at a value of $315,000. The company will commence supplying face masks to Australian and international retailers immediately with the hemp-infused hand sanitiser available for online ordering.

About the Australian Primary Hemp share price

Australian Primary Hemp produces, manufactures and distributes hemp products, farming its own hemp and using it to create manufactured goods. It has been listed on the ASX since 2019.

In the year to 30 June 2020, Australian Primary Hemp had revenue of $1.16 million. It experienced a loss of $5.91 million in the 2020 financial year. 

In August, Australian Primary Hemp announced it had signed a 2-year agreement with Annex Foods to supply it with hemp seeds. The agreement was valued at $760,000 and the hemp seeds will be used as an ingredient in Annex Food’s Red Tractor brand products in Australia and overseas.

The Australian Primary Hemp share price is up 278% since its 52-week low of 4.9 cents and is up 8.8% since the beginning of the year. The company’s shares are down 33.9% since this time last year.

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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