New German Deal Sends Elixinol’s Share Price 5.86% Higher

Shares in hemp and medicinal cannabis company Elixinol Global Ltd [ASX:EXL] have stormed 21.5 cents higher this morning, a jump of 5.86%, to trade at $3.89 per share.

Elixinol manufactures and globally distributes hemp-derived CBD dietary supplements, food and wellness products, as well as medicinal cannabis products.

Download your free report to learn three of the hottest pot stocks on the ASX right now.

Elixinol’s details on German deal?

EXL released details of a new deal struck with a German company to distribute its products through German pharmacy channels.

EXL’s wholly-owned Dutch subsidiary, Elixinol BV, signed an exclusive distribution agreement with MedVec International GmbH for pharmacy and para pharmacy channels in Germany.

Under the terms of the exclusive distribution agreement, the MedVec will sell Elixinol-branded products and white-label products via its existing sales network for an initial graduated period and provides for an extension for a further three years.

Today’s deal builds further on EXL’s expansion operations. The company announced on 5 February its expansion into the European hemp and cannabis market.

CEO Paul Benhaim said the agreement will significantly expand EXL’s presence on the continent:

The distribution agreement with MedVec allows Elixinol to significantly expand its presence in Germany, the largest pharmacy market in Europe, as well as Austria and Switzerland.’

MedVec has a sales reach to over 15,000 pharmacies across Germany, giving it the potential to deliver strong results for Elixinol.

Global expansions helps Elixinol share price

Elixinol has focused much of its operational efforts to rapid global expansion over the past couple of years. In 2019 alone, the company has managed to expand operations across Europe, including the Netherlands, Spain and United Kingdom (a cannabis market predicted to be worth €115.7 billion by 2028). It entered the New Zealand market and significantly expanded US operations via capital raisings and acquisitions.

The company is also looking to expand operations in Asia having increased its holdings in Elixinol Japan in September last year.

Despite the rapid global expansion, EXL has managed to keep on track with revenue growth. Last financial year, the company posted a 121% growth in revenue across its international businesses. Underlying net profit also improved from -$0.7 million in FY2017 to $0.8 million in FY2018.

With plans for further expansion in the second half of the year and into 2020, the company’s interim report, due 28 August, will be one to look out for.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

PS: Check out this brand-new report titled ‘Top Three Pot Stocks for 2019’, Sam Volkering reveals pot players dominating the local and global markets for legal marijuana. Get your free copy here.

Shares in hemp and medicinal cannabis company Elixinol Global Ltd [ASX:EXL] have stormed 21.5 cents higher this morning, a jump of 5.86%, to trade at $3.89 per share.

Elixinol manufactures and globally distributes hemp-derived CBD dietary supplements, food and wellness products, as well as medicinal cannabis products.


Ryan Clarkson-Ledward is one of Money Morning’s junior analysts. Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects. Ryan’s primary focus is assisting Sam Volkering with background research and insight for readers by dissecting the latest events affecting the world. Working closely with Sam, they explore the latest in small-cap and technology stocks as well as cryptocurrency opportunities. You can find Ryan’s contributing research, developments, and supporting information across several e-letters, including:


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