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- Hemp products provider Ecofibre (EOF) will be financially impacted by ongoing U.S. riots, making the company withdraw its second-half guidance
- Ecofibre said the civil unrest will have an impact on near-term sales for its Ananda Health business
- Before the riots began, Ecofibre launched its Hemp Black Fusion Facemasks in April, selling $1.2 million worth of the product in May
- Despite the civil unrest, Ecofibre is still planning to launch a new line of food-based nutraceuticals into the U.S. market this month
- Ecofibre is down over eight per cent on the market this afternoon, selling shares for $2.83 each
Hemp product provider Ecofibre (EOF) will be financially impacted by the current U.S. riots, making the company withdraw its second-half guidance.
Over the past two weeks, the United States was in its early stages of re-opening after coronavirus lockdowns. However, the country is now plagued by civil unrest across most of its major cities following the death of George Floyd in police custody.
“As a result of these events, Ecofibre’s major markets will be impacted for an unknown period of time,” CEO Eric Wang said.
Ecofibre said the civil unrest will have an impact on near-term sales for its Ananda Health business. This has caused the company to withdraw its second-half guidance.
“The company has strong confidence in the U.S. hemp-derived CBD market, and we look forward to a return to a level of normality in due course,” Ecofibre told shareholders today.
Distribution of Fusion Facemasks
In other news, Ecofibre subsidiary Hemp Black launched its Fusion Facemasks on April 29. The company said approximately 67,000 masks were sold through three major distributors in May, bringing in around $1.2 million.
The company shifted capacity to meet the personal protective equipment requirements for the high-quality 3D knitted mask.
The mask uses Hemp Black Element, Ecofibre’s cannabidiol-infused yarn, and copper-infused yarn to create an anti-microbial and anti-odour washable mask.
Ananda Food BRGC and new product launch
Ananda Food continues to see steady sales at Woolworths through its Macro branded hemp seed and protein powder.
The company has recently achieved a British Retail Consortium Global (BRCG) certification, which is a critical requirement for major retailers around the globe.
Further, despite the ongoing riots, Ecofibre is still planning to launch a new line of food-based nutraceuticals into the U.S. market later this month.
“The product line features both Ananda Food and Hemp Black capabilities. The initial range of products include an activated hemp charcoal capsule, a complete plant protein featuring hemp protein and a vegan omega capsule featuring hemp seed oil,” the company said.
CEO Relocation
Eric will be staying in the United States for the remainder of the calendar year and will permanently relocate his family to the country in December.
This move is due to the level of businesses needed in the U.S., particularly for Ananda Health and Hemp Black.
“My family and I have been blessed to have been able to live in Australia for the past 20 years,” Eric said.
“Over the past several years, business requirements have kept me in the U.S. for about eight months each year. However, Australia’s onerous travel restrictions and
quarantine requirements have meant commuting to the U.S. is no longer a viable option,” he explained.
Once travel restrictions are lifted, Eric will resume regular travel to Australia.
Ecofibre is down 8.71 per cent on the market this afternoon, selling shares for $2.83 each at 1:28 pm AEST.
