A new Australian company has started trading on the ASX. Fiji Kava or the Company, an Australian kava company has commenced trading on the Australian Securities Exchange (ASX), following a successful initial public offer (IPO).
The raise was led by PAC Partners, supported by Cicero Advisory and Kontiki Capital. The oversubscribed offer raised $5.2 million before costs, with offers scaled back.
There was said to be very strong support received from institutional and retail shareholders in both Australia and Fiji and includes investment from Strategic Global Funds and Fijian distribution partner – Jacks of Fiji. A total of 26,000,000 fully paid ordinary shares at $0.20 per share were issued under the offer.
Targeting the US$15 billion benzodiazepine market Kava has been used in the South Pacific for over 3,000 years in traditional kava ceremonies and is known for its relaxation and therapeutic benefits. Fiji Kava’s products are said to be backed by years of joint research conducted with the Australian Centre for International Agricultural Research, the University of the South Pacific and the University of Melbourne. Kavalactone, the active ingredient in kava, is extracted from select noble kava cultivars, selected to target specific medical conditions.
CEO Zane Yoshida states said, “Today marks a huge milestone for us and we are excited to be the first kava company to be listed on any exchange globally. On behalf of the board, I’d like to thank our new and existing shareholders for their incredible support in the lead-up to our listing.”
“The team is focussed on our Australian launch, research and development and the commencement of human clinical trials as it looks to develop a portfolio of products which address a variety of ailments and build long term value for our shareholders,” said Yoshida.