Queensland Bauxite hits record high after buying hemp seed factory
Health & Biotech
Health & Biotech
Queensland Bauxite surged more than 40 per cent to a record high after its cannabis investment arm Medical Cannabis Limited bought a hemp seed processing plant.
Under the deal, Medical Cannabis Limited’s (MCL) hemp seed food business VitaHemp will own 55 per cent of Hemp Hulling — described as “Australia’s best hemp seed processing and innovation group”.
Hemp seeds — touted as the most nutritious seeds in the world — were legalised for Australian consumption earlier this month. The seeds contain proteins, essential fats and vitamins with a relative lack of sugar and starches.
Eve Investments (ASX:EVE) subsidiary Medi Honey also today announced a foray into the hemp ‘superfood’ market with hemp seed honey.
MCL’s Hemp Hulling acquisition gives the group a hemp seed food production capability from seed to supermarket shelf.
Queensland Bauxite (ASX:QBL) shares jumped to an all-time high of 5.8c on the news. The shares closed at 52.5c on Wednesday.
“Hemp Hulling Co is recognised as Australia’s number one processor of Australian Grown food grade hemp seeds, with state-of-the-art hemp processing equipment and personnel with years of operational experience,” Vitahemp founder Andrew Kavasilas said.
The deal also gives QBL exposure to a venture between Hemp Hulling and Waltanna Hemp Group, a processor of flax and hemp seed oils, proteins and flours.
“These products will be incorporated under the Vitahemp brand, so MCL will be planting, growing, harvesting, processing, manufacturing, marketing and supplying the industry with a variety of hemp seed food products with Vitahemp/MCL having control over the entire process.”
Mr Kavasilas has been an active campaigner for hemp-based food since 1999 and spruiks the controversial seed as an alternative grain for use in a variety of products such as milk and breakfast cereal.
QBL hopes to spin off MCL independently on the ASX, issuing $1.5 million worth of shares to HHC shareholders.
Separately, Eve Investments (ASX:EVE) told investors a combination of hemp seed and their Australian honey produced “truly unique health benefits and an exceptional flavour profile”.
EVE shares jumped 29 per cent to 0.9c, before settling back to 0.8c.
EVE says its hemp honey product will be ready for wholesale distribution by the end of the year, and direct to consumer by the first quarter of 2018.
QBL chairperson Pnina Feldman — the sister of mining entrepreneur Joseph Gutnick — said hemp foods would soon become everyday products.
“Natural nutrition is no longer the domain of health food stores. More and more mainstream retailers provide Australian families an opportunity to purchase wholesome foods.
“Many believe help seed is the world’s most nutritionally complete, affordable and sustainable food source. Consumer demand is robust.”