Calmer Co. Lands 2.64m FJD Loan at 5% Interest for Navua Acquisition
The Calmer Co. International Limited has secured a $2.64 million FJD loan from Fiji Development Bank to acquire a key Navua facility, marking a strategic step to bolster its kava processing and staff infrastructure.
- Secured 2.64 million FJD ($1.8 million AUD) loan from Fiji Development Bank
- Loan terms: 5% interest rate, 20-year term, monthly repayments of FJD18,200
- Acquisition of 5856m2 freehold land with 1930m2 processing and office space
- Loan secured by mortgage with strict covenants on financial reporting and asset use
- Facility to support kava processing and staff accommodation in Navua
Strategic Facility Acquisition in Navua
The Calmer Co. International Limited (ASX: CCO), a health and wellness company focused on natural calming solutions, has announced the securing of a 2.64 million FJD loan from the Fiji Development Bank. This financing will enable the company to acquire a strategically important facility in Navua, Fiji, in early 2025.
The acquisition includes a freehold land parcel of 5856 square meters, featuring a residential dwelling intended for staff quarters and a kava processing facility with 1930 square meters of internal floorspace. The facility is well-equipped with office space, a quality assurance laboratory, two cool rooms, a blast freezer, and mezzanine storage levels, critical infrastructure for The Calmer Co.'s expanding operations in kava production and distribution.
Loan Terms and Financial Discipline
The loan carries a competitive 5% interest rate over a 20-year term, with monthly repayments of FJD18,200 commencing one month after settlement. The loan-to-value ratio stands at 60%, reflecting prudent financial structuring. The loan is secured by a mortgage over the property, underscoring the company’s commitment to asset-backed growth.
Importantly, the loan agreement imposes several covenants, including quarterly and annual financial reporting, maintenance of debt-to-equity ratios, comprehensive insurance coverage, and restrictions on additional indebtedness, asset sales, and ownership changes. These conditions aim to ensure financial discipline and protect both lender and borrower interests.
Implications for Growth and Market Position
This facility acquisition represents a significant milestone for The Calmer Co., which markets natural calming products under brands such as Fiji Kava, Taki Mai, and Danodan Hempworks across multiple international markets including the USA, Australia, China, New Zealand, and Fiji. The enhanced processing capacity and dedicated staff accommodation are expected to streamline operations and support scaling production to meet growing demand.
In addition, securing financing from a reputable institution like Fiji Development Bank signals confidence in The Calmer Co.'s business model and growth prospects. However, the company must navigate the loan’s covenants carefully to avoid material events of default, which include payment failures, insolvency, or impairment of collateral.
Looking Ahead
As The Calmer Co. integrates this new asset into its operational footprint, investors will be watching closely for the impact on production efficiency, cost management, and revenue growth. The company’s ability to maintain compliance with loan covenants while expanding its market presence will be critical to sustaining momentum in the competitive health and wellness sector.
Bottom Line?
The Navua facility acquisition, backed by a structured loan, sets the stage for The Calmer Co.'s next growth phase—but disciplined execution will be key.
Questions in the middle?
- How will the new facility impact The Calmer Co.'s production capacity and cost structure?
- What risks does the company face in meeting the loan’s strict covenants over 20 years?
- Could this acquisition signal further expansion plans in Fiji or other markets?