Darling of the small cap ‘pot stocks’ EVE Investments (ASX: EVE) has cemented its 50% stake in Meluka Health, which announced this morning it plans to develop honey water for the Chinese market.
Meluka Health executed an agreement with Refresh Group (ASX: RGP) to create a honey water range for Chinese and Australian markets.
The water will be produced using Meluka Health’s organic Meluka honey.
EVE investments director Ben Rohr said selling the honey water into China will help establish the Meluka brand in the region.
“This is a great first step for Meluka Health to enter into this burgeoning market,” Mr Rohr said.
Meluka Health has produced its first organic hemp seed honey which is expected to be available to Australian and United States consumers early next year. Meluka Health claims the hemp seed honey contains essential fat, vitamins, proteins and enzymes which are believed beneficial for overall health.
Yesterday, Eve made sure its 50% interest in Meluka Health was concrete with both parties inking a subscription and shareholder agreement.
The transaction is due to be completed within two weeks and Eve shares will be issued.
Eve entered a binding agreement to purchase 50% of Meluka Health for A$1.49 million in May this year. Jenbrook owns the other half and has a certified organic melaleuca tea tree farm, which it will produce products from to sell into the global market.
Jenbrook also brings to the joint venture its established businesses and connections throughout the value chain.
EVE’s is a start-up investment vehicle which partners with companies that offer a “unique business plan” and a global outlook.
After a four-day rollercoaster that saw the stock surge then slide, EVE staged a come back on this morning’s news, with its share price rebounding more than 17% in early morning trade to sit at A$0.02.