Calmer Co. Secures $1.8M Loan to Own and Upgrade Navua Facility

• FJD2.64 million loan secured from Fiji Development Bank at 5% interest over 20 years
• Acquisition of Navua facility valued at FJD4.4 million ($3.0 million AUD)
• Facility includes 1,930m2 of production and office space with advanced cold storage and lab
• Ownership enables planned upgrades and increased production capacity
• Strong government backing reflects confidence in The Calmer Co.'s growth strategy

Strategic Acquisition Backed by Fiji Development Bank

The Calmer Co. International Limited (ASX: CCO), a health and wellness company focused on kava products, has taken a significant step forward by securing a FJD2.64 million (approximately AUD 1.8 million) loan from the Fiji Development Bank (FDB) to acquire its current manufacturing facility in Navua, Fiji. This move transitions the company from tenant to owner of its production site, a milestone that CEO Zane Yoshida describes as pivotal for the company’s future growth.

The loan, structured with a 5% interest rate over a 20-year term and a 60% loan-to-value ratio, supports the purchase of the freehold land, buildings, and built-in plant valued at FJD4.4 million (AUD 3.0 million). The facility spans 5,856 square meters, including a 1,930 square meter internal floorspace equipped with offices, a Quality Assurance Laboratory, cold rooms, cool rooms, a blast freezer, and mezzanine storage.

Enhancing Production and Market Position

Ownership of the Navua facility is more than a real estate transaction; it is a strategic enabler for The Calmer Co. to install new plant and equipment and execute critical upgrades to boost production capabilities. The company plans to expand its in-house laboratory functionality and increase kava buying and processing efforts, aligning with growing global demand for kava products.

Yoshida emphasized the importance of this acquisition in strengthening the company’s market position and its commitment to investing in the Fijian economy. The inclusion of a residential dwelling on the property for staff accommodation further underscores the company’s long-term operational plans in Fiji.

Government Confidence and Industry Partnerships

The Fiji Development Bank, a government-owned institution with over 55 years of history supporting national economic development, plays a crucial role in this transaction. Its backing signals strong governmental confidence in The Calmer Co.’s business model and growth prospects. FDB’s status as the first South Pacific development bank accredited to the Green Climate Fund also highlights the institution’s commitment to sustainable development, an increasingly important factor in the wellness sector.

The Calmer Co. also acknowledged its ongoing partnership with Kai Ming Agro Processing, reflecting a collaborative approach to supply chain and production excellence. This relationship is expected to continue bolstering the company’s operational strength as it scales.

Looking Ahead

With financing secured and the acquisition contract moving to unconditional status, The Calmer Co. is positioned to accelerate its growth trajectory. The company’s diversified product range, including powders, liquid shots, concentrates, and capsules under brands like Fiji Kava and Danodan Hempworks, is well placed to capitalize on rising global interest in natural wellness solutions.

As The Calmer Co. integrates the Navua facility into its operations, investors and industry watchers will be keen to see how these enhancements translate into production efficiency, product innovation, and market expansion.

Bottom Line?

Owning its Navua facility empowers The Calmer Co. to scale production and deepen its foothold in the booming global kava market.

Questions in the middle?

• How will the acquisition impact The Calmer Co.'s production timelines and capacity?
• What are the risks associated with integrating new plant and equipment into the existing facility?
• How might government backing influence future financing or expansion opportunities?