As a sophisticated investment group, Caason Group today announces a raising of $500k for Food, Fibre & Land International Group Pty Ltd (FFLI) via a new redeemable or convertible note.
FFLI produces industrial hemp; a high demand input product for the: scent/perfume, health; food and beverage; and construction and building sectors. FFLI is based in Western Australia (WA) and is in its first commercial year. It has already created a successful industrial hemp hub in Manjimup WA – with an existing crop on 100 hectares (300 hectares by the end of September 2019).
Caason Group is an existing top 10 FFLI shareholder and Craig Astill is a founding non executive director of the company, in addition to his Caason related other roles. Caason Group also manages R&D for FFLI.
FFLI provides the scientific smarts, owns IP and has pulled together a team of highly qualified and experienced hemp and soil consultants. The farming is undertaken via FFLI executed grower contracts.
FFLI is following its strategic plan for broadacre growth in WA, the Northern Territory and other states. FFLI is progressing plans for regional FFLI owned and operated hubs in Denmark, Gin Gin and Collie (all in WA). Impressively, FFLI has already secured offtake agreements representing $2.5m.
Another achievement is FFLI’s Joint Venture (JV) with Raintree Pearls & Perfumes formed in 2018. This JV has created “Kavvabis” as a subsidiary business entity 50% FFLI owned. Kavvabis has an extraction and processing premises in Denmark, WA.
Via the Caason and FFLI led capital raise, the funds will be used to:
- complete the development of FFLI’s extraction and processing plant in Denmark, WA (the Kavvabis site)
- fund product development
- further build grower and distribution channels
- continue brand establishment
- commercial hemp is now legal in Australia with the Northern Territory (NT) being the final jurisdiction to legalise it
- crops, grown under licence, feature very low tetrahydrocannabinol (THC) levels, meaning they have little to no psycho-active compounds
- Australia is entering a high growth global market where industrial hemp is viewed as a valuable seed and fibre
- hemp as a resource is thriving with Canada, the US and Europe leading the way
- Merrill Lynch only started tracking the hemp industry in 2018 and already report a global value of $166b
Craig Astill, Caason Group MD & CEO said: “We are very excited about the emerging industrial hemp sector and our FFLI investment offering.”