Algae and cannabis oils could find their way into natural skin care products under an MoU between ASX listed companies Affinity Energy & Health and Skin Elements.
Under the initial 12 month MoU, Affinity will be the exclusive supplier of algae and cannabis oil formulations in either discrete or blended forms which Skin Elements will utilise to develop new and innovative product formulations.
The two ASX listed companies will collaborate on the development of a new range of algae and cannabidiol based products for supply to key global markets.
Commercial terms and financial arrangements will be negotiated at an appropriate time as product development initiatives progress.
Affinity said algae based products are strong sources of anti-oxidants such as carotenoids, high Omega-3 fatty acids, key minerals and vitamins as well as essential proteins.
It added that various algae species have well-documented benefits in the formulation of cosmetics and skin care products.
The company said that cannabidiols could fight the signs of ageing and have been shown to be effective at reducing skin inflammation and blemish-prone skin.
Affinity Executive Chairman Mal James said: “We are excited about collaborating with Skin Elements on the development of a number of new skin care formulations with Affinity’s algae and cannabis oils.”
Affinity currently produces multiple algae species at its growing facility in Atlanta that are supplied into key nutraceutical and aqua feed markets globally.
It also has a 25% interest in Uruguayan cannabis producer Auberna SA.