The first kava company to list on any global exchange just hit the boards of the ASX
Health & Biotech
Health & Biotech
Special Report: Fiji Kava, which is bringing premium noble kava products to the Australian market, officially joined the ASX this morning.
The company has range of competitively priced, high-quality medical kava products under the Taki Mai brand in Fiji.
Fiji Kava’s listing follows a successful IPO, which closed oversubscribed and raised $5.2 million from institutional and retail shareholders including Strategic Global Funds and the company’s Fijian distribution partner, Jacks of Fiji.
The raise was led by PAC Partners, supported by Cicero Advisory and Kontiki Capital.
The next cannabis?
When asked about why they were keen on Fiji Kava, investors previously told Stockhead they saw parallels between the recent growth in medical cannabis and the opportunity for kava.
Experts have suggested that kava could become the new cannabis, as its medicinal benefits and its active ingredients kavalactones are becoming widely recognised as a natural, non-prescription alternative for the treatment of anxiety, insomnia, and stress.
“Noble” kava is considered the premium variety of the drink, as opposed to “Tudei” kava, which is widely reported as responsible for the “two-day hangover”.
Investors also noted there is significant market potential for kava as a plant-based alternative to opioids.
Fiji Kava is also unique in that it has the support of the Fijian Government.
It’s the first foreign company to be granted permission to operate in the kava industry, making it a front-runner in the kava space.
Bringing calm to a place near you
Fiji Kava’s products use extracts from select kava varieties cultivated to target specific medical conditions.
It already has a suite of TGA and FDA-compliant Taki Mai branded medical kava products for sale in Fiji and preparations are underway for an official launch under the Fiji Kava brand in Australia in early 2019.
Research and clinical trials are a big part of the company’s development and growth plans.
CEO Zane Yoshida says the company will conduct clinical trials in Sydney in conjunction with the National Institute of Complementary Medicine (NICM).
“Clinical trials will test which cultivars best target insomnia, muscle recovery and cardiovascular disease. We will also be exploring medical cannabis and kava combinations, targeting a variety of indications our research team has identified.”
Fiji Kava’s products are backed by years of joint research conducted with the Australian Centre for International Agricultural Research, the University of the South Pacific and the University of Melbourne.
Mr Yoshida says it is now focussed on its launch into Australia, “research and development and the commencement of clinical trials”.
“We’re looking to develop a portfolio of products which address a variety of medical ailments and build long term value for our shareholders,” he said.