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    Fiji Kava Ltd (ASX: FIJ), an Australian-Fijian medicinal kava health & wellness company which produces natural
    ‘noble kava’ products for the complementary and alternative medicine market, submits the following Activities
    Report and Appendix 4C Cash Flow Statement for the three-month period ended 31 December 2019 (Q2FY20).
    Fiji Kava is encouraged by the progress that it has made over the quarter ended 31 December, including:
    • Ongoing progress of Fiji Kava's commercial operations, including a 237 per cent increase in revenues during
    the quarter versus the prior corresponding period.
    • Favourable demand from Pathway International, the leading supplier of innovative, high-quality ingredients
    to the complementary medicine, personal care and pharmaceutical industries.
    • The launch of Fiji Kava products with the world’s largest retailer, Amazon USA.
    • Execution of a Memorandum of Understanding with leading Australian natural and complimentary medicine
    company Oborne Health Supplies, to market and sell Fiji Kava products across its nationwide distribution
    network of health professionals, health food stores and other health-related businesses.
    Increased store presence of Fiji Kava products in more than 120 Unichem & Life Pharmacy outlets in New
    • Secured retail distribution of Fiji Kava products in 'Mobil on the Go' service stations across Fiji, augmenting
    New World Supermarket and Morris Hedstrom Supermarket distribution.
    • The appointment of Group Financial Controller, Sharmila Nanayakkara.
    • All AGM resolutions passed, including shareholder approval for future issue of shares.
    • Favourable shifts in the regulatory environment following the Australian Government’s relaxation of the
    personal kava import rules into Australia and announcement of a commercial importation pilot of kava by
    the end of 2020.
    Revenues for the quarter were $147,000 a 237% increase from the prior corresponding period ($62,000 in
    Q2FY19). This was driven by an increase in revenue from the commencement of the rollout of ingredients supply
    to Pathway International, while early gains were witnessed from other recently announced retail activities and
    new distribution agreements.
    Cash flow used in operating activities in the quarter ending 31 December 2019 was $xxxxm as Fiji Kava
    significantly progressed its retail activities, increased production at its manufacturing plant, launched new
    product offerings and invested in its brand educational and marketing initiatives to build consumer awareness.
    Cash flow used in operating activities comprised $392k in product manufacturing and operating costs, $196k in
    advertising and marketing costs, $341k in staff costs and $207k in administrative and corporate costs.
    As at December 31st, 2019, the company had $841k in cash and no debt.
    During the quarter, the company completed a Convertible Note raise and has issued a number of Convertible
    Notes (Notes) to participating high net worth strategic and sophisticated investors; this was strongly supported
    by significant shareholders including global and international institutional investors.
    Improving ties between the Pacific and Australia positively contributes to unlocking the future potential of Fijian
    noble kava. It’s therefore pleasing to see the Fijian and Australian Governments reach an agreement for the
    launch of a kava pilot program. This program loosens import restrictions of kava into Australia, covering both
    personal use and commercial imports.
    For personal use, Australia will double its import allowance from 2kg to 4kg commencing by the end of 2019. It
    will be followed by a pilot program for the commercial importation of kava, which will begin by the end of 2020.
    Further collaboration and engagement between Fiji and Australia will influence increased kava usage in
    Australia. Fiji Kava is committed to helping strengthen these ties, including via Fiji Kava's founder and Managing
    Director, Mr Zane Yoshida's role in the Executive Committee for the Australian Fiji Business Council and through
    participation in the development of a regional standard for kava endorsed by Codex Alimentarius.
    Fiji Kava continues to make significant progress in the implementation of its strategy that underpins the
    Company’s future growth, including:
    1. Growing Availability of Fijian Noble Kava
    Fiji Kava is the first and only foreign company with approval from the Fijian Government to operate in the
    kava industry.
    During the quarter, Fiji Kava continued to execute its commercial strategy and made progress in securing key
    partner agreements. These agreements demonstrate the increasing global demand for kava and the progress
    that Fiji Kava has made in enhancing the availability of its products, including:
    • Favourable demand for Fiji Kava's kava powder extract for complimentary medicines group Pathway
    International, the leading supplier of innovative, high-quality ingredients to the complementary medicine,
    personal care and pharmaceutical industries.
    • Significant progress of Fiji Kava's eCommerce strategy, including the launch of Fiji Kava products with world’s
    largest retailer, Amazon USA, and also via in the USA.
    • A month-by-month increase in sales of Fiji Kava capsules and kava powder across more than 120 Unichem &
    Life Pharmacy outlets in New Zealand.
    • A partnership with Oborne Health Supplies which will strengthen Fiji Kava’s brand presence and significantly
    increase the availability of Fiji Kava natural medicinal products across the healthcare channel.
    • Ongoing expansion of retail distribution partners in Fiji to now include 'Mobil on the Go' service stations
    nationwide, in addition to New World and Morris Hedstrom Supermarkets.
    Mr Yoshida said: “We are excited to launch our products online in the US. The launch validates the growing
    popularity of kava in the United States; where kava usage is increasing with more people searching for natural
    remedies to tackle anxiety disorders and depression in our society. The growing acceptance of kava in America’s
    US$32.7 billion vitamins and supplements market will present significant future opportunities for the company.
    “This is an exciting time for Fiji Kava as we begin to increase the availability of our products across targeted
    global markets and the signing of many new distribution agreements, we are particularly pleased with the early
    results of our first order with Pathway International.”
    2. Noble Kava Supply Chain Excellence
    Establish a globally leading sustainable, unadulterated and 100% traceable supply chain of ‘noble’ kava
    Fiji Kava's supply chain successfully managed the increased volumes resulting from initial retailing activities and
    increased demand for kava during the quarter. The company will continue to invest in its supply chain as
    anticipated demand across its four global markets continue to grow.
    During the quarter, key developments include:
    • Increases in production and processing capabilities across our existing properties and infrastructure, with
    more than 40,000 noble kava plantlets on our estate in Levuka to help meet future demand.
    • Capital investment in new mobile processing facilities on Vanua Levu to strengthen processing capabilities
    and to diversify our operations across geographic locations with minimal investment.
    • Organic in Conversion audit completed under the Australian Organic Standard (AOS) as well as a witness
    audit also completed for EU market
    • Our plants at the Cawatara estate and outgrower’s farms were not impacted by Tropical Cyclone Sarai that
    passed over the Fiji group recently.
    3. Innovation & Product Development
    Innovation and product development to bring health & wellbeing to consumers through the natural benefits
    of Fijian noble kava
    Fiji Kava’s products are produced by high-quality Good Manufacturing Practices (GMP), which are TGA and FDA
    compliant. They are recognised as a complementary medicine in Australia, are compliant to the New Zealand
    Dietary Supplements Regulations (1995) and are sold as a dietary supplement in many international markets.
    During the quarter, key developments include:
    • Completion of our initial product suite of both capsules and instant powders to support our initial massmarket retail entry, to provide a variety of safe and convenient consumption options for consumers.
    • Organic audits for the Australian and EU markets were recently completed at our estate on Ovalau. Inconversion status gives the company a 12-24 month pathway to full organic certification.
    • Provenance QR code scan in development for product packaging.
    4. Promoting the Medical Benefits of Kava
    Scientific and traditional evidence support Fiji Noble Kava’s therapeutic benefits to health & wellbeing
    Fiji Kava is committed to being pioneers in the global kava industry, through efforts to promote awareness and
    the benefits of kava, as well as through medical research and development to shape the future of the industry.
    During the quarter, key developments include:
    • Following his appointment in 2019, Chief Scientific Advisor, Professor Jerome Sarris, continued to work with
    the National Institute of Complementary Medicines (NICM), on clinical trial designs for innovative kava
    delivery and dose formats for the treatment of anxiety, insomnia and muscle relaxation.
    • Launched initial marketing and public relations efforts to align with our retail market entry.
    • The company also gained traction in mainstream national business and consumer media, including coverage
    on the Nine Networks Today Show, one of Australia's leading breakfast television programs.

    courtesy of Bell Direct

    ( DYOR )

    i do not hold this share

    ( am still watching and assessing this )

    i hold BKL so i don't believe all the alternate medicine is a scam ... but some of it has been

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