Ecofibre Limited shares leapt by 10% on the ASX yesterday following the announcement of a distribution deal with US pharmacy chain CVS.
The exclusive arrangement will see a line of Ecofibre’s hemp products sold in select CVS stores in the US.
Ecofibre develops hemp products for use in food and medicine as well as other industrial applications. Its main brand is Ananda Hemp. CVS has almost 10,000 stores throughout the US.
Ananda Health CEO David Neu said: “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 hem-derived products to a broad range of customers.”
Ecofibre will initially supply 10 hemp-derived topical products to CVS, which will be manufactured at its new US headquarters in Kentucky. The agreement is ongoing with no cap on order volumes.
Trading closed at $3.02 on Thursday (May 14).