Australia’s Ecofibre (ASX:EOF) announced a subsidiary had inked an exclusive distribution agreement involving hemp products with a large U.S. pharmacy chain last week.
On Wednesday, Ecofibre went into a trading halt; emerging on Thursday with the news its subsidiary EOF Distribution, Inc. (EOFD) had entered into an exclusive distribution agreement with CVS Pharmacy.
CVS Pharmacy is a subsidiary of American retail and health care company CVS Health. It’s a huge company, with more than 9,900 stores across the USA.
Under the agreement, a line of hemp-derived topical products will be offered for sale at select CVS locations, which will be manufactured in Ecofibre’s new US headquarters located in Georgetown, Kentucky.
“We are very pleased to have been selected to supply this brand of products to be offered exclusively at CVS, and are excited at the long-term prospects of providing high-quality hemp-derived products to a broad range of consumers,” said EOFD’s David Neu.
The topical products are expected to be available at the yet undisclosed CVS locations in December this year and the agreement is an ongoing arrangement, with no minimum or maximum value. The market initially reacted favourably to the news, with EOF shares closing 10% higher on Thursday, before settling back lower on Friday.
In other recent news from Ecofibre, earlier this month we reported the firm had commenced distribution of facemasks across the United States manufactured under its Hemp Black brand, which is focused developing innovative hemp related fibre products.
Ecofibre has a number of strings on its bow. Aside from Hemp Black; in the United States Ecofibre manufactures nutraceutical products for human and pet consumption, plus topical creams and salves under the Ananda Hemp brand. In Australia, hemp food products including protein powders, dehulled hemp seed and hemp oil manufactured locally through subsidiary Ananda Food from locally grown hemp.
Ecofibre is Chaired by Barry Lambert, who has been previously recognised along with his wife Joy for their very generous support of medicinal cannabis research. Among their donations was a AUD $33.7 million to fund the Lambert Initiative at the University of Sydney and a USD $3 million gift in 2016 to Thomas Jefferson University in the USA.