An organic tea tree farm in New South Wales has received a $1.49 million investment to help develop medical cannabis honey.
Jenbrook supplies raw tea tree oil and honey products to the US through Naturally Aust Product. Next month, it’s expected to hit $1.6m annualised monthly revenue, a 100% increase from June 2016.
The company has also been exploring a medical hemp honey, produced by bees pollinating on the nectar of medicinal cannabis plants. It’s working with Southern Cross University on research into its health benefits. EVE Investments has kicked in the $1.49 million to help get the product to market.
In return, EVE – an ASX-listed technology investment company – will acquire a 50% interest in Jenbrook.
Jenbrook is based in Alstonville in the NSW Northern Rivers region. Subject to the transaction, its assets also include Jendale and Robyndale tea tree plantations in the heart of the Bungawalbyn Valley Basin, and the patented extraction technique used to produce high potency tea tree oil.
The plantations are also a source of melaleuca honey, and Jenbrook is currently validating a production process which is expected to yield honey with “superior antibacterial properties” to manuka honey.
It claims the “meluka” honey has potential as a treatment for “certain human diseases”.
“The business is at a very exciting point and is uniquely positioned to disrupt the approximate $2.1 billion global manuka honey market,” EVE’s investments director Ben Rohr said.
The acquisition will be facilitated through the creation of a new company (NewCo) that will be a 50/50 joint venture between EVE Investments and Jenbrook.