ASX Pot Stocks: Fiji Kava branches out to CBD and LGP nabs German distribution deal
Health & Biotech
Health & Biotech
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The medicinal kava company was up 2.8% in early morning trade today, after completing the acquisition of the Danodan CBD tincture business in USA – including the Portland Oregon based CBD Tincture Plant, inventory and all associated intellectual property, CBD extract US Patent 10,716,819.
Danodan produces a suite of organic certified CBD tincture products sold throughout wellness boutiques and regional natural foods grocery stores in the USA.
Fiji Kava has begun work on scoping the use of Danodan’s patented extraction process for Noble Kava products – which are derived from the roots of kava plants from the South Pacific.
As of 1 January, this year, the company began doing business at The Calmer Company to reflect its expanded product lines and plans for further acquisitions of “aligned brands and products.”
The global CBD market exceeds US$2.8 billion – and is expected to grow at a compound annual growth rate (CAGR) of 21.2% through to 2028.
The company is confident that growing the availability of the Danodan products in retail and online will be a key initial driver of growth.
“Danodan’s organic certified CBD tinctures are renowned in the USA for purity and quality and represent an integrative, broad-spectrum approach to herbal formulation, with a real point of difference from highly processed CBD products,” CEO Anthony Noble said.
“The liquid dispersible beverage-ready format of these tinctures is highly aligned with our growing innovation and product development pipeline; including the exploration of kava and CBD combination products in the OTC, dietary supplement and functional beverage markets.”
Up 1.7% today was LGP, which signed a three-year distribution agreement with leading German medical cannabis distributor AMP for its LGP-branded products.
It’s kind of a big deal for the company which made moves in Europe last year acquiring a 20 tonnes per annum facility in Denmark.
AMP has agreed to purchase certain minimum annual quantities of at least 2,000 x 50ml units in the first year, 5,000 units in the second year and 10,000 units in the third year, provided that if LGP distributes LGP branded oils on its own account the quantities in the second and third years are reduced by 50%. AMP must ensure that at least 10% of the Minimum Annual Quantities purchased are non-exclusive oil products.
And AMP can’t promote any other cannabis oil products in Germany – plus LGP can distribute and market its own LGP branded oils on its own behalf after the first year of the agreement.
The company reckons AMP’s significant marketing and sales capability will help further grow patient and prescriber recognition of the LGP brand across its product suite.