Fiji Dev. Bank supports Navua Acquisition with FJD2.64m loan

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Stock The Calmer Co International Ltd (CCO.ASX)
Release Time 6 Feb 2025, 8:29 a.m.
Price Sensitive Yes
 Fiji Dev. Bank supports Navua Acquisition with FJD2.64m loan
Key Points
  • The Calmer Co. will purchase its current manufacturing site in Fiji for FJD4.4m ($3.0m AUD)
  • The loan from Fiji Development Bank has a 60% Loan-to-Value Ratio, 5% interest rate, and 20-year term
  • The acquisition strengthens the company's market position and allows further investment in the Fijian economy
Full Summary

The Calmer Co. International Limited (ASX:CCO), a health and wellness company focused on kava products, has accepted an offer from Fiji Development Bank (FDB) for a FJD2.64m ($1.8m AUD) loan that will support the acquisition of the company's Navua facility in Fiji. The agreed purchase price for the land, buildings, and all built-in plant is FJD4.4m ($3.0m AUD). The freehold land parcel is 5,856m2 and the internal floorspace of the facility totals 1,930m2, including offices, a Quality Assurance Laboratory, cold rooms and cool rooms, a blast freezer, and mezzanine storage. The loan has a 60% Loan-to-Value Ratio, based on an independent valuation of the property, with a 5% interest rate and 20-year term. Founder and CEO Zane Yoshida stated that the purchase of the facility marks a significant milestone for The Calmer Co., as it strengthens the company's market position and allows further investment in the Fijian economy by increasing plant capacity, introducing in-house laboratory functionality, and expanding kava buying and processing efforts to meet booming global demand. The company also acknowledged the invaluable partnership with Kai Ming Agro Processing and looks forward to continuing the strong relationship.

Outlook

The acquisition of the Navua facility strengthens The Calmer Co.'s market position and allows the company to further invest in the Fijian economy by increasing plant capacity, introducing in-house laboratory functionality, and expanding kava buying and processing efforts to meet booming global demand for kava products.