ASX RELEASE
Fiji Development Bank supports Navua Facility
Acquisition with FJD2.64m loan
Brisbane, Australia: The Calmer Co. International Limited (ASX:CCO), a health and
wellness company whose mission is to be the most dominant kava company in the world,
informs shareholders that it has accepted an offer from Fiji Development Bank (FDB) for
a FJD2.64m ($1.8m AUD) loan that will support the acquisition of the company’s Navua
facility.
Highlights
• The company will purchase the current manufacturing site in which it operates now
in early 2025, with the contract now to progress to unconditional status with
financing secured via the FDB loan and the recent capital raising undertaken.
• The loan has a 60% Loan-to-Value Ratio, based on independent valuation of the
property with a 5% interest rate and 20-year term.
• The agreed purchase price for the land, buildings and all built in plant is FJD4.4m
($3.0m AUD)
• The freehold land parcel is 5,856m2 encompassing the facility, grounds and a
residential dwelling, which will be used for staff accommodation.
• The internal floorspace of the facility totals 1,930m2, including offices, a Quality
Assurance Laboratory, cold rooms and cool rooms, a blast freezer and mezzanine
storage level.
Founder & CEO, Zane Yoshida, stated:
“The purchase of our facility in Fiji marks a significant milestone for The Calmer Co. This
acquisition comes at a pivotal moment as we install our suite of new plant and
equipment, while also executing crucial upgrades to enhance our production
capabilities.
This achievement has been made possible through the support of our shareholders and
the Fiji Development Bank. As the bank is government-owned, this approval reflects the
confidence and backing of the Fiji Government in our business.
The Calmer Co International
Pitt Street Research Report
Evolving into the World's Dominant Kava Company Pitt Street Research has released an update to its research report on The Calmer Co which sets base case valuation of $0.016 per share and a bull case valuation range of $0.018-$0.024 per share.
Highlights from the Research Report
- Market capitalisation is $59.5m in the base case and $77.5m in the bull case.
- Calmer Co. finished FY24 with $4.3m in sales, a figure that was more than double FY23 sales
- In the first 6 months of FY25, the company has already surpassed FY24’s figures and recorded an annualised revenue rate of $10m in the month of October 2024.
- The company reduced net cash used in operations by half in Q2, after inventory was accounted for, with cash burn of $142k per month, down from $284k per month in Q1 of FY25.
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The valuation thesis used by Pitt St Research is not only based upon the company’s top and bottom line growth (driven through expansion of its offerings and into new markets, as well as increased operational efficiency and productivity), but it considers two other societal trends.
- The first of these is a growing awareness of the health benefits of kava, particularly towards anxiety, not to mention the growing presence of these conditions. Anxiety is a large market opportunity. An estimated 2.7% of US adults will have had Generalized Anxiety Disorder in the past 12 months.
- We also see the potential for kava to make its mark as an alternative to alcohol. Alcohol use is declining, particularly across younger generations in Western jurisdictions.
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