AuMake wants to put its customers to sleep with Herbsmart buy-in
Health & Biotech
Health & Biotech
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China-focused AuMake is buying into a company putting a spin on the old hot-milk-before-bed idea.
AuMake (ASX:AU8) is buying half of Herbsmart Pharmaceutical which makes a valerian milk.
Valerian is a non-pharmaceutical herb that some people swear by as an insomnia cure.
The deal gives AuMake, a company that sells Australian products to China via “daigou” and Chinese tourists, an option to buy another 40 per cent of the company using scrip.
AuMake joined the ASX infant formula crew in August, after signing up a Kiwi dairy producer to develop an in-house range of milk powder formula products.
Pure Nutrition, part-owned by New Zealand’s second biggest dairy co-operative Westland Milk Products, will initially develop milk powder with A1 and A2 proteins targeted to the demands of Chinese customers. A2 milk is said to be healthier than A1.
The deal is costing them nothing.
AuMake has been helping to develop the Herbsmart brand, so in exchange it is getting half of it for no money down.
AuMake will be responsible for marketing and distribribution activities, via China’s JiaJia TV shopping channel by the end of the month, while Herbsmart will handle research and development, along with manufacturing
AuMake chairman Keong Chan said they’re following the market trend for milk product sales into China.
“Our initial joint ownership and opportunity to acquire more of Herbsmart provides a strategic opportunity for us to develop niche products to meet an identified need within the Chinese consumer market,” he said.
AuMake shares were flat on Friday morning at 27c.