Fiji Kava share price soars 90% on Blackmores subsidiary agreement, trade paused

The Fiji Kava share price soared nearly 90% following the signing of a major agreement with Blackmores-owned company BioCeuticals.

| More on:
Fiji Kava tablets sitting in a bowl

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Fiji Kava Ltd (ASX: FIJ) share price soared 89.66% higher this morning to reach an intraday high of 16.5 cents. This came before the Fiji Kava share price pulled back to 12.5 cents and was placed in a trading pause, pending a further announcement. The commotion resulted from the company's announcement it has signed a major agreement with BioCeuticals, a company owned by Blackmores Limited (ASX: BKL). 

Fiji Kava produces natural 'noble kava' products for the complementary and alternative medicine market which is estimated to exceed US$210 billion by 2026 globally. It is focused on providing an alternative to prescription medications to promote sleep, soothe and calm the nerves, support muscle relaxation and relax the mind. The products are Theapeutic Goods Administration (TGA) and Food and Drug Administration (FDA) compliant. 

Major agreement highlights

Fiji Kava has announced a non-exclusive licence agreement with BioCeuticals to develop a co-branded product for release in Australia and New Zealand. It will see BioCeuticals use the noble kava extract for its AnxioCalm product. AnxioCalm is a herbal medicine to support symptomatic relief of mild anxiety, tension and stress. 

In addition, AnxioCalm products will be co-branded with Fiji Kava's 'Authentic Fiji Kava' trademark on each product sold. It will be made available through BioCeuticals' extensive network of qualified healthcare practitioners across Australia and New Zealand. 

The agreement follows progress being made on Fiji Kava's commercial strategy to grow the availability of its Fijian noble kava. It now has cornerstone retail agreements with Coles Group Ltd (ASX: COL) supermarkets in Australia, Green Cross Pharmacy in New Zealand and has also expanded its eCommerce presence on Amazon.com in the United States. Additionally, it is exploring opportunities to access Chinese marketplaces. 

Fiji Kava will supply BioCeuticals with noble kava via its agreement with Pathway International. 

CEO comments

Understandably, Fiji Kava founder and CEO, Zane Yoshida, was pleased and said:

"This is another milestone for the company that will not only increase the availability of our noble kava in Australia and New Zealand, but is another strong endorsement by a leading healthcare provider of the quality and uniqueness of our Fijian noble kava…

Fiji Kava will continue to scale-up its production in Fiji to produce required inventory to meet the growing demand from the BioCeuticals licence agreement and other recent business development advancements such as ranging in Coles Supermarkets nationally".

About the Fiji Kava share price

Before the pause in trade, the Fiji Kava share price was trading at 12.5 cents, representing a 43.68% increase in today's trade. It has a market capitalisation of around $12 million.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Amazon. 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.

More on Share Market News

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to the trading week for investors this Friday.

Read more »

A young boy points and smiles as he eats fried chicken.
Share Gainers

3 ASX All Ords shares smashing the benchmark this week

Investors are sending these three ASX All Ords shares rocketing 18% to more than 29% this week. But why?

Read more »

watch
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why APA, Flight Centre, Reece, and Transurban shares are falling today

These shares are having a tough finish to the week. But why?

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Alliance Aviation, BHP, Boss Energy, and Orthocell shares are racing higher

These shares are ending the week on a positive note. But why?

Read more »

Mum playing with her baby boy holding him on her tummy as she lays down while smiling about the Bubs share price going up today
Broker Notes

Following two unfortunate incidents, what's Macquarie's price target on Monash IVF shares?

Is Monash IVF a buying opportunity?

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Broker Notes

Macquarie tips 18% return for this ASX 200 stock

The broker thinks this blue chip's profits are going to rebound in FY 2026.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Broker Notes

Bell Potter names more of the best ASX 200 shares to buy in FY26

These shares are among the best to buy in the new financial year according to its analysts.

Read more »