Plant-based health company Affinity Energy and Health (ASX: AEB) has joined forces with skincare specialist Skin Elements (ASX: SKN) to develop a new range of algae and cannabidiol (CBD) based skincare products.
The pair today announced the signing of a memorandum of understanding (MoU), under which Affinity will supply its high-quality algae and cannabis oil formulations in either discrete or blended forms for Skin Elements to use in the formulation of new and innovative products.
The unique range is expected to deliver “enhanced product specifications” and will be supplied to key global markets.
According to the pair, very few skincare companies in the world offer a combined natural algae and CBD product and with an effective marketing campaign, this collaboration could prove to be a major boost for both companies.
The non-binding agreement has an initial 12-month timeframe with the possibility of extension and is expected to be formally reviewed at six-monthly intervals. Under the deal, Affinity will be the exclusive supplier of algae and CBD oils to Skin Elements.
According to the companies, the commercial terms and financial arrangements of the MoU are yet to be confirmed and will be “negotiated at an appropriate time as product development initiatives progress”.
Unlocking the benefits of algae and cannabis oil
According to Affinity, algae are strong sources of antioxidants (such as carotenoids, high Omega-3 fatty acids, key minerals, vitamins and essential proteins), which have been proven to benefit skin hydration, regeneration and moisturisation.
It has also been proven to protect against ultraviolet rays from the sun, as well as improve the appearance of scarring, reducing free radicals and inflammation.
CBDs also offer high antioxidant protection, particularly to help fight signs of ageing.
“CBDs assist in reinvigorating the receptors which interact with your endocannabinoid system targeting increased moisture, improved elasticity and a more youthful appearance overall,” Affinity stated.
In addition, CBD contains the Omega-3 fatty acid, gamma-linolenic acid, which acts as an anti-inflammatory while simultaneously encouraging skin growth and new cell generation. According to the company, this can help to calm skin inflammation and irritations such as acne and psoriasis.
Skin Elements executive chairman Peter Malone said his company was “keen to pursue and maximise” the opportunity to develop algae and CBD oils for use in skincare products.
“We continually strive to deliver the highest quality natural and organic skincare products to our customers, and we look forward to working closely with the team at Affinity to unlock the potential to develop new and enhanced skincare formulations,” he said.
Skin Elements is focused on developing natural and organic skincare products as an alternative to chemical-based products. Its range includes the Soleo Organics 100% natural and organic sunscreen, PapayaActivs natural therapeutics, Complete Esscience natural skincare and the Elizabeth Jane Natural Cosmetics brand.
Algae facility expansion
As well as being a key supplier of CBD raw ingredients, Affinity executive chairman Mal James said the company was currently producing multiple high-demand algae species at its state-of-the-art algae growing facility in Atlanta, which it was “actively supplying into key nutraceutical and aqua feed markets globally”.
In its annual report released at the end of last month, Affinity reported its entrance into the commissioning phase of its plans to expand the facility’s capacity.
The company also announced last week it had started commercialising its fifth Affinity FeedMe algae product, a longer shelf-life product to be sold in the aquarium market through a distribution deal made with US-based Seachem Laboratories.
By early afternoon trade, Affinity’s share price was steady at $0.013 while Skin Element’s stock rose 15.38% to $0.06.