Name change as the ‘hard mahi’ begins
ONE of the most recognisable names in the New Zealand cannabis industry has changed.
The Hikurangi Cannabis company has officially rebranded to Rua Bioscience as it turns to focus on the growing opportunity presented by the global cannabis market.
The original name of the business was derived from the umbrella group Hikurangi Enterprises, which was established to create sustainable economic development on the East Coast.
‘‘The name Hikurangi needs to remain with Hikurangi Enterprises and our whanau living in the shadow of the mountain,’’ chief executive Manu Caddie said.
‘‘With the company poised to enter international markets, the time is right for it to have its own name, Rua Bioscience, which will carry it into the future and can flex with the company as it evolves.
‘‘Rua references the company’s home and roots in Ruatoria. Bioscience underpins the company’s focus on bringing together worldleading expertise in plant genetics and science to create unique, highvalue pharmaceutical products derived from indigenous innovation.’’
The new branding was developed by Aucklandbased, independent creative agency Special Group, and is not the only change within the business.
The company has also announced the appointment of independent chairman Trevor Burt to lead the now fully finalised board.
Mr Burt arrives with a strong agricultural track record, having served in global executive roles and on the boards of PGG Wrightson, Landpower, Silver Fern Farms and Market Gardeners NZ, and as chairman of Lyttelton Port and Ngai Tahu Holdings.
Joining Mr Burt on the board is independent director Anna Stove, who formerly worked as general manager of GlaxoSmithKline NZ.
These two appointments complete a board that also includes Hikurangi CoFounder Panapa Ehau, finance and equity businessman Brett Gamble and marketing and retail expert Martin Smith.
Mr Caddie made room for Ms Stove by relinquishing his director role to focus on his responsibilities as chief executive, while former board member Fang Liu was replaced by Mr Gamble.
Mr Caddie would not reveal how much each of the directors are paid but did say the remuneration was in line with Institute of Directors market rates to attract ‘‘highquality governance talent’’.
According to the 2019 Institute of Directors fees report, nonexecutive directors in companies with fewer than 50 employees earn on average $33,000 while nonexecutive chairpersons earn an average of $44,000. Rua Biosciences employs 21 staff.
As with all New Zealand businesses operating in the cannabis space, Rua Bioscience is still in the preprofit phase, in anticipation of the launch of the regulated medicinal market next year.
An amendment to the Misuse of Drugs Act was passed by Parliament in December and submissions on how medicinal cannabis should be regulated closed earlier this year. The law changes are now expected to come into effect early next year.
‘‘You have to ignore the hype and get on with the hard mahi required to be in pole position when we get the green light from the regulators,’’ Mr Caddie said.
He would not offer further detail on his longterm estimates on when the business might turn a profit, but he did say he saw a wide range of local and global opportunities ahead.
‘‘Over the last 12 months the business has been focused on laying the solid foundations to build a resilient, sustainable, fully integrated business with multiple, diverse revenue streams within the medicinal cannabis sector,’’ he said.
‘‘We are linking to a highperforming investment and innovation ecosystem from genetics and cultivation technology, to research, manufacturing, product development, pharmaceuticals and marketing.’’
Mr Burt admitted there were challenges with starting a new business, particularly in an industry that did not exist before.
‘‘There’s no blueprint for entering a sunrise industry,’’ he said.
‘‘But there is a blueprint for building a sustainable, longterm business. It starts with getting the foundations right, with good governance and good strategy.’’
While the local cannabis scene had become inundated with numerous players, Mr Burt said the real competition for the business came from the global market, which was expected to be worth more than $100 billion by 2026.
‘‘New Zealand has an excellent heritage in horticultural IP, where we have taken a global leadership position in plant genetics and research to create unique highvalue products,’’ Mr Burt said.
‘‘This company is looking to replicate that excellence in cannabis cultivars to create innovative new health products that carry the highest pharmaceutical grade certification.’’ — The New Zealand Herald