Elixinol Share Price Barely Budges on Licence: An Explanation

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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:

exl share price

Source: tradingview.com

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.

We cover the Elixinol growth story in this free report. Get the names of three unique ASX-listed pot stocks by downloading a copy.

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.

Elixinol is one of three cannabis stocks we look at in this free report. Each stock covered offers a unique way of investing in the space. It can be downloaded here.

Regards,

Lachlann Tierney,

For Money Morning

About Lachlann Tierney

Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest…

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