Kava Bar USA, page-5

Now that CCO has a fairly solid business model and the fact that they are in a position to sign up fairly tight sales agreements going forward with third parties as well as these Kava bars I think the company will be in a position raise funds in the near future thought debt funding. I don’t want them to rush into this as in some ways it can increase risk but when they can be fairly certain of future sales they will be able to tap the banks.

Another option could be through government export funds and support. If CCO is helping the Fijian economy through creating jobs and helping farmers to profit from their farms I believe that the Australian government could look at giving them a leg up as it could help win favour with the Fijian government which has been particularly important with China lurking around the Pacific. The Labor party has had a renewed focus on the Pacific after the Libs dropped the ball there through both incompetent international relations and lack of focus on climate change. The yanks are taking more interest in the Pacific also to stop China gaining any more traction in the area. Australia will win favour with the yanks also by developing stronger relationships.

Kava only gained legalisation due to the desire to support the Fijian and other South Pacific islands. One of the Fijian export agencies have already shown some support. I believe that it would tick a few boxes for the Australian government to do so also. Sometimes this support is not necessarily funding but access to more professional support for export markets. I don’t think the government would put their name to cowboys but this whole thing is starting to look quite healthy so they may gain more support. Growth is great, still some time till profitability but I don’t think we will see more than one credit raise at most. If there is I get a feeling that those in the know will fund it and we may not get a chance to get involved. If that does happen I believe that it will be at market prices with no discount, possibly higher. Interesting times ahead.