- Fiji Kava (FIJ) aims to raise $3.5 million through a share purchase plan (SPP)
- Under the SPP, eligible shareholders will be able to purchase up to $30,000 worth of shares at 8 cents each
- Notably, Fiji’s Directors have confirmed that they will participate in the SPP
- On the market this afternoon, Fiji was down 9.89 per cent and is trading at 8.2 cents per share
Fiji Kava (FIJ) looks to raise $3.5 million through a share purchase plan (SPP) to be offered to eligible shareholders.
The SPP will allow investors to purchase up to $30,000 worth of shares at 8 cents each.
Funds from the raise will go towards capital expenditure to increase operational capacity at the company’s Fiji facility, US operations and working capital for its Australian operations.
Notably, Fiji’s directors have confirmed that they will participate in the SPP.
Fiji Kava produces natural products to reduce anxiety, promote relaxation and improve sleep and sports recovery.
Earlier this month, the company’s subsidiary, Fiji Kava Inc USA, agreed to purchase Danodan’s CBD business.
Danodan produces CBD tincture products which are sold throughout wellness boutiques and regional natural foods grocery stores in the US.
Fiji Kava will pay US$235,000 (around A$318,000) in cash for the assets and US$350,000 (approx. A$473,000) for the patent.
This purchase will see Fiji Kava take the first steps to actively operate a business in the United States.
On the market this afternoon, Fiji Kava was down 9.89 per cent and is trading at 8.2 cents per share at 2:13pm AEDT.