- Bod Australia (BDA) is making good on its expansion promises with its first binding purchase order for the U.S. market
- Health & Happiness Group (H&H) has purchased $312,000 worth of CBD products, which is expected to be the first of several orders over the coming months
- Bod said it will now manufacture an initial three full spectrum CBD oil products as part of its brand CBII
- Having previously collaborated, Bod and H&H will jointly launch the CBII range directly to consumers in the U.S. through ecommerce platforms
- Bod Australia remains steady at 48 cents per share
Bod Australia (BDA) is making good on its expansion promises with its first binding purchase order for the U.S. market.
According to this morning’s announcement, Hong Kong-listed Health & Happiness Group (H&H) has purchased $312,000 worth of CBD products, which Bod expects to be the first of several orders to be received over the next few months.
The two companies have an existing relationship, having previously worked collaboratively to bring Bod’s line of CBD products, CBII, to the U.K. market.
Bod will now manufacture an initial three full spectrum CBD oil products under the CBII banner, which — in partnership with H&H — will be launched to U.S. consumer through ecommerce platforms later in the first half of 2021.
Under the terms of the partnership, H&H will be responsible for marketing and brand campaigns as well as distribution, while Bod will receive royalties from products sold and a kickback from the supply of finished goods.
“The first U.S. purchase order is an exciting step for Bod on two fronts, firstly as it’s growing our global footprint, and secondly the U.S. offers a significant opportunity for consumer healthcare CBD products,” said Jo Patterson, CEO of Bod Australia.
“Bod will continue to work with H&H to progress additional opportunities in North America,” she added.
The U.S. market for CBD products is expected to hit US$6.9 billion (roughly A$9 billion) by 2025, making it four times larger than the U.K. market.
Bod Australia remains steady at $0.48 per share as of 10:15am AEST.