At time of writing, the share price of Elixinol Global Ltd [ASX:EXL] is up a meagre 0.13%, trading at $4.005.
Surging to all-time highs in April and a double top, the Elixinol share price has slumped back down to the $4 range:
Today, the company announced that its subsidiary, Nunyara Pharma Pty Ltd, has been granted a Manufacture Licence. The company has also made changes to its board.
Elixinol share price gets small bump, Medicinal license to come ‘shortly’
Today, the Elixinol share price was trading down initially but was able to register a small uptick when the announcement was released, and then settled where it started at $4.
As per the announcement, the Manufacture licence allows Elixinol’s subsidiary to manufacture, ‘medicinal cannabis for extracts and tinctures of cannabis and cannabis resin.’
Commenting on the license, the new CEO of Elixinol, Stratos Karousos said, ‘we look forward to also being granted our Medicinal Cannabis Licence shortly which will complete our licence application process for Nunyara.’
While the medicinal license would be a larger win for the company, some investors may be wondering why the Elixinol share price barely budged.
Two reasons why Elixinol share price movement was small
There are two main reasons for this I believe.
- The company’s main focus (from a revenue perspective) is for the moment, growing their US CBD business.
- Althea Group Holdings Ltd [ASX:AGH] is already ahead of Elixinol when it comes to the Australian medicinal market, having signed up its 1,000th patient — meaning competition will be fierce in a small market.
In other news, former CEO, Paul Benhaim has moved to a new role as the Chief Innovation Officer, where he will be focussed on product development.
This allowed Karousos to move into the CEO position, having worked for the company as Chief Commercial and Legal Officer.
For Money Morning