Fiji Kava (ASX:FIJ) completes $4.58M placement

• Medicinal kava health and wellness company Fiji Kava (FIJ) has successfully completed its $4.58 million share placement
• More than 25.4 million new shares will now be issued to institutional, professional and sophisticated investors at 18 cents each
• Fiji Kava also announced it had achieved record revenue of over $376,000 in for Q4 FY20, a 1205 per cent increase from $28,151 in Q4 FY19
• The company contributes this to the launch of its noble kava product range in Coles supermarkets across the country
• Fiji Kava is currently up 6.67 per cent and shares are trading for 24 cents each

Medicinal kava health and wellness company Fiji Kava (FIJ) has successfully completed its $4.58 million share placement.

25,491,766 new shares will now be issued to institutional, professional and sophisticated investors at 18 cents each.

Shares are expected to settle on September 11 and be allocated on September 16.

“Funds raised through the placement will be used to enhance the company’s financial flexibility and provide additional working capital to support strategic opportunities and growth momentum, particularly in relation to new product development and in promoting the medicinal benefits and growing availability of Fijian noble kava in the key markets of China, Australia, New Zealand and the USA,” Chairman Dr Andrew Kelly said.

This news follows on Fiji Kava’s recent $8 million agreement with PuMate Shanghai.

This partnership will see PuMate sell Fiji Kava’s noble kava extract over an initial three year period.

Further, if PuMate achieves $10 million in revenue, Fiji Kava will issue up to 1.5 million options to PuMate.

Fiji Kava also announced it had achieved record revenue of over $376,000 over Q4 FY20, a 1205 per cent increase from $28,151 in Q4 FY19.

The company contributes this to the launch of its noble kava product range in Coles supermarkets across the country.

Fiji Kava is currently up 6.67 per cent and shares are trading for 24 cents each at 1:08 pm AEST.