Ecofibre supported by former AFR Rich Lister Barry Lambert had made its first acquisition after establishing its US manufacturing partner to develop its black hemp textile products.

Ecofibre has invested $42 million to buy TexInnovate which comprises 5 businesses to act as an integrated manufacturing platform. The company wishes to pivot athleisure wear and make PPE in response to the USA’s demand.

The company revealed that the group revenue for fiscal 2020 had increased by 42% which was underpinned by the growth in all its business lines.

In July however, the company faced a difficult quarter where the revenue tumbled by 47% due to upheaval across its supply chain and US pharmacy customers.

The pandemic stormed the market with oversupply, dislocation of numerous US cannabidiol businesses making the trade conditions difficult.

Despite the unprecedented times, Ecofibre's key US-based Ananda Health unit, which produces hemp-based nutraceutical products for humans and pets, boosted sales to $46.8 million from $34.2 million in 2019. The company is on track to introduce the US-based CVS Pharmacies with 10000 outlets in the upcoming quarter.

Hemp Black which produces hemp-based textiles using technology developed by Ecofibre in collaboration with Thomas Jefferson University in Philadelphia posted its revenue to be $2.4 million after having sold over 135,000 facemasks in the last couple of months.

The chief executive of Ecofibre ensured to refocus its priorities from athleisure wear to PPE in response to potentially global demand. Mr. Wang said the strategic buy of TexInnovate was an important step to accelerate Hemp Black from the R&D stage to full commercialization.