Affinity Energy and Health Ltd (ASX: AEB) is a healthcare and wellbeing company, which has plant based products. It is a diversified company leading among its peers. The company is effective in developing industry loading growing technology. This technology serves as a catalyst for the company to enhance the production of commercial quantities of algae and medicinal cannabis for supplying mainly to four markets namely Algae-based nutraceuticals, Animal feed and aquaculture markets, Medicinal cannabis and Biofuels.
The production of Algae is done from the state of the art growing facility of the company in Atlanta. The company produces multiple high demand species used to cater both the growing nutraceutical and aqua feed markets. The company through its strategic partnerships produces medicinal cannabis in Uruguay, to cater the demand of rapidly increasing cannabis market.
The company now announced the execution of non-binding heads of agreement with St John of God Health Care Inc, an incorporated association with limited liability to support medical cannabis research & development activities. During the agreement term of 2 years, the two companies will work collaboratively to identify and undertake research projects and the development of medicinal cannabis products. St John is a world class private hospital with a long and proven track record of undertaking research to deliver effective, evidence-based care. The hospital provides a wide range of medical and speciality services.
The financial and commercial terms are not yet detailed out in the agreement and these will be determined once the project programmes and projects are defined.
As per the executive chairman of Affinity Energy, Mal James, the company is excited to enter into the agreement with St John of God Health care Inc as this will support the commercialisation of the Australian medicinal cannabis strategy and cater to the patients significantly.
The company was seen to be trading at $0.017 on the ASX with a downward trend over the last few months, however it has shown some resilience and upward trend in the past month. The stock has posted a 52-week high of $0.070 and a 52-week low of $0.011 with a current market capitalisation of $ 15.29 million. The news on research in medicinal cannabis space, helped the stock move up by 6.25 per cent. This player seems to set the footprint in the cannabis space and needs to be monitored for any significant development. It is otherwise known for commercialising products in 2 global markets. AEB expects to leverage from the potential boom in the cannabis space with the expansion of cannabis legalisation for medicinal and recreational use. It has also been lately granted a European license (Malta) and is focusing on a global strategy. The group has earmarked many strategic moves for CY 2019 including commencement of phase 1 of its facilities in Europe and Colombia. The group is also gearing up on its biofuels division while a medicinal cannabis spin off may be one key development of first half of CY 2019.
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