The Benzo Killer - FIJ ($25M MC) ($75M ST Target), page-788

Just a bit of a background article behind who we are in bed with in China written after the initial MOU with PuMate from May was announced and why I see this agreement as so much more than just the $8M dollar figure. In fact I think we have severely undervalued this contact.

Chi Li was the Chinese machine behind Nicholas Simms and BUBs success - he was the Chief of Operations/CEO for the chinese arm of BUBS and was almost independently the driving force behind their success in Chinese markets. We have effectively/indirectly landed Chi Li onto the board of FIJ by giving him a share bonus incentive for sales if he achieves $10M in annual sales. Why is he so important and such an asset to the FIJ team?

He was the mastermind behind landing baby formula and other nutritional products into retail stores/vitamin market places driving the china revenue for BUBS. Just as how we look at Nicholas Simms and his contacts with Woolworths/Chemist warehouse, I think we have severely undervalued Chi Li's connections and ability to use them for quick retail penetration into the Chinese markets. We have effectively landed a superstar who possesses Chinese retail distribution contacts/strong relationships who has how Andrew Kelly labels "such a tremendous track record of success in building international products and ingredients to China". Will we see Fiji Kava in most of these Chinese stores where BUBs was sold given these existing contacts? That is too early to tell, all I know is that there is a massive share incentive for Chi Li to aim to do so.

I see Chi Li as practically being on the board given this share bonus incentive and COO for FIJ China, I can not be happier that management have structured it in this way. Im excited to hear how this progresses. I cant see Nicholas Simms joining the FIJ board and exercising his established industry contacts to this degree to just turn FIJ into a $50-75M company, I see it as him building the foundation for a goal of a $150-250M company. This will of course be a 2-5 year horizon, although as a year has passed since Nicholas Simms joining the board, I see him deploying a mass amount of work already to prop FIJ into a realistic chance of growing to that size.

With being an option holder and these options expiring in 2023, I know Ill be watching this unfold on a longer holding period of years as opposed to 1-2 quarters.