The institutional investors are optimistic about the future and growth prospects of Fiji Kava and hence they are considering the company as a potential investment opportunity. While this would be the first kava company which would be hitting the global exchange, the market participants need to know about the company’s operations in order to take the sound investment decision. Fiji Kava is mainly referred as biotechnology company and its R&D (research and development) aspirations would be helped by the current operations of the company which revolves around selling the kava extracts in the name of the consumer product. At present, the company is in the process of sourcing, producing as well as marketing the products which are kava based and it also plans to initiate the export activities and sell these in Hong Kong, New Zealand, USA as well as Australia. The product offerings include capsules, powders, shots which have been created to reduce the stress and enhance the sleep. The products also helps in promoting the relaxation.
The initial public offer or IPO would be hitting the markets next Monday and the investors can expect that it would be getting listed in mid-November. However, the company has managed to gain attraction from Fijian as well as Australian investors. The company would be raising AUD$5.2 million with the per-share price of $0.20. The company plans to deploy the funds which have been raised towards several purposes some of which would be to use the proceeds towards working capital purposes, costs related to the offer as well as for the admin expenses, in conducting expansion activities in the retail as well as wholesale nutraceutical markets and towards human clinical trials which would be undertaken in the consultation with respect to the NICM or National Institute of Complementary Medicine.
The players which are expert in the industry are of the views that kava could probably achieve the status of cannabis. This is expected mainly as it is also understood to be the natural alternative which could be treating insomnia, anxiety, muscle as well as stress tension. The investors are also seeing this as the long-term investment opportunity as future research with respect to the usage of specific kava strains might help the company. The management of the Strategic Global Fund has been showing interest in the company’s clinical trials as well as the advancements which they are doing in regard to the individual kava strains. They added that the company’s reach to the target customers is expected to increase after it identifies chemotype as well as kavalactone profiles which might help the customers’ needs.
The top management of Kinetic Growth Fund has made an investment earlier in the company and with the help of IPO, it plans significantly to raise the exposure to the company. This decision comes amid the favorable outlook for the company’s growth prospects. Moreover, the company also believes that it would be successful in raising the amount which it has targeted through the process of IPO.
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