BOD Share Price Climbs 45% with New Strategic Investment Deal

Medicinal cannabis healthcare products company BOD Australia Ltd [ASX:BDA] has made an agreement with H&H Group’s innovation arm NewH2, which will see NewH2 acquire a small stake in BOD in exchange for a $5.5 million investment.

The acquisition is associated with BOD’s CBD (cannabis and hemp extract) products, which are compliable to sell across relevant markets.

Bod issued a trading halt on Wednesday pending this announcement. This was lifted upon market open today, and Bod shares have since climbed 16 cents higher, or 45.71%. Current trading price at time of writing is 51 cents a share.

A hunt for innovative cannabis companies

NewH2 is H&H Group’s corporate venture aimed at supporting early growth-stage entrepreneurial businesses ‘who are using advances in technology and science to develop innovative advanced nutrition solutions’. This innovation branch is H&H Group’s way of ‘keep[ing] abreast of new, potentially disruptive products, science, trends and technologies’.

BOD has likely fallen into NewH2’s line of sight after securing a distribution agreement to aid sales of their pharmaceutical grade medicinal cannabis product, MediCabilis™. Such a venture points to a company who are taking the cannabis craze seriously, endeavouring to create cannabis/hemp-based products that actually work.

Indeed, it was ‘the consistency, premium quality, reliability and safety data’ of MediCabilis™ that helped secure this prior distribution agreement.

As such, the idea behind this new BOD/NewH2 partnership is for the two companies to work together ‘to further commercialise the superiority of [BOD’s] CBD extracts and product formulas’.

H&H Group will have the right to commercialise, promote and distribute BOD’s nutraceuticals, skincare, hemp seed oil and lifestyle products under a new brand, which can sit alongside H&H’s other established, internationally marketed products.

H&H Group will have a 17.64% stake in the company, as well as two board seats. Meanwhile, BOD retains the rights to their medicinal cannabidiol products, and will focus on building that sector of the business both in Australia and abroad.

Will this venture be lucrative?

Regarding the cannabis market, H&H CEO and Executive Director Laetitia Garnier seems to reflect our views here at Money Morning, calling it a ‘niche industry’ but always having ‘believed in its huge potential’.

And with BOD ‘leading the way with clinical trials and innovation programs’, and H&H Group being ‘the global leader in supplements and vitamins’, it’s understandable that BOD CEO Jo Patterson sees this partnership as ‘game changing’.

But BOD isn’t the only cannabis company you should be keeping eye on. Here at Money Morning we’ve found four pot stocks that are chasing in big on the worldwide legalisation of cannabis. For your free report on these potential profit pot heads, click here.


Ryan Dinse,

For Money Morning

Ryan Dinse is an Editor at Money Morning.

He has worked in finance and investing for the past two decades as a financial planner, senior credit analyst, equity trader and fintech entrepreneur.

With an academic background in economics, he believes that the key to making good investments is investing appropriately at each stage of the economic cycle.

Different market conditions provide different opportunities. Ryan combines fundamental, technical and economic analysis with the goal of making sure you are in the right investments at the right time.

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