Australian-Fijian medical cannabis company FijiKava (ASX: FIJ) announced last week that it has signed a letter of intent that will see it buy The Whole Plant Company (which trades under the name “Danodan Hempworks USA”)
If the deal goes through by the 24th of December 2021, FijiKava will acquire Danodan Hempworks’ assets and a patent for its cannabidiol extraction process. Danodan Hempworks is currently owned by real estate company WPC Inc. and the patient is held by WPC’s founder Daniel Stoops. FijiKava is set to pay $US235,000 (roughly $AU317,000) for the company’s assets and $US350,000 (roughly $AU472,000) for the patent.
This deal is huge for FijiKava because it will allow the businesses to sell CBD products as an active business in the US. Currently, the company is limited to selling through Amazon and directly to other companies.
Danodan Hempworks currently sells CBD tinctures and cannabis-based wellness products, but FijiKava may expand its product range by applying its patented technology to Noble FijiKava (FijiKava’s kava range). Kava is made from Piper methysticum and people often take it to treat anxiety and stress.
According to Danodan Hempworks’ founder, Daniel Stoops, says this is an excellent opportunity for the company.
We’re really excited about this opportunity. We’ve been looking for a new relationship like this. We’re aligned on values. We fit very nicely into The Calmer Co (USA)’s mission.
Considering that the US cannabis market is one of the largest in the world and the global CBD market is worth over $US2.8 billion (roughly $AU3.78 billion), it’s also a strategic move for FijiKava. If the deal between Danodan Hempworks and FijiKava is successful, FijiKava will start operations in the US market under the name “The Calmer Co” from January 1st, 2022.