Leilo Transaction Update - Inventory Build and Capital Raise
Brisbane, Dec 23, 2022 AEST (ABN Newswire) - Fiji Kava Ltd (
ASX:FIJ), a health and wellness company with operations in Australia, Fiji, and the USA. The company which produces natural products to reduce anxiety, promote relaxation, improve sleep, and support sports recovery and performance, provides shareholders the following update on the acquisition of Leilo Inc. USA.
HIGHLIGHTS
- Due Diligence Information and Definitive Legal Agreements for the transaction are in final forms.
- Shareholder approval and regulatory approvals have been granted. The company received an executed ASIC Instrument providing the relief for Fiji Kava Ltd to enter into voluntary escrow deeds with the shareholders of Leilo, Inc. on 14th December 2023.
- Completion of the relevant disclosures and execution of final agreements is expected in mid-January 2023.
- The company will provide an interim loan facility to Leilo Inc. of up to 150,000 USD to facilitate production of RTD inventory in January and February to enable continued sales momentum for Leilo. Goods financed are not expected to be delivered until after closing of the transaction.
- The Company has completed a fully subscribed capital raising of $500,000 AUD to fund the interim loan facility to Leilo and for the production of Dietary Shots inventory for launch in the Vitamin Shoppe in April 2023.
Fiji Kava CEO, Anthony Noble said: "We have been working closely with the Leilo team to complete due diligence and post-merger integration planning process. With regulatory and shareholder approvals in place, both parties are proceeding to finalise the required schedules and disclosures to the Definitive Legal Agreements in the coming weeks. To continue with positive sales momentum and sufficient inventory levels, we have made an interim loan to Leilo for inventory production. We have also approved production of Dietary Shots for the Vitamin Shoppe to ensure we meet shipping dates in March. We look forward to working together in January as a new combined Calmer Co team."
*To view details of the loan facility, please visit:
https://abnnewswire.net/lnk/4P131JEQ
About Fiji Kava Limited
Fiji Kava Limited (ASX: FIJ) is an Australian-Fijian medicinal kava health & wellness company, producing natural 'noble kava' products for the complementary and alternative medicine market, estimated to exceed USD $210 billion by 2026 globally. As the first foreign company with approval from the Fijian Government to operate in the kava industry, FijiKava has established a global leading sustainable and 100% traceable, certified organic supply chain of 'noble kava' including a nucleus farm in Levuka, on the island of Ovalau, Fiji.
FijiKava is focused on expanding the availability of noble kava products throughout western markets to provide a natural alternative to prescription medicines to promote sleep, soothe and calm the nerves, support muscle relaxation and relax the mind.
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