Since the summer, Elixinol Global Limited ELLXF has posted increasing retail sales thanks to some holiday promotions combined with booking 110% in organic revenue growth. The company is Australian-based and only started trading on the OTC 3 months ago, but their focus on direct-to-consumer sales has resonated especially with their Elixinol USA offerings of CBD dietary supplements.
Before looking at those numbers, lets step back and look at the company’s entire business model and growth platform. ELLXF has three sections (2 of 3 are already generating positive revenues) and the company itself is evidence of the versatility of the hemp plant, more below:
Elixinol US – the company is moving to Colorado, which will double their capacity for processing and manufacturing specifically increasing their bottling capacity to 24,000 per day. The company currently offers capsules, tinctures, liposome, topical products as well as a whole host of other products in development. The company also signed a joint venture with Kersey AG to give them access to 700 acres of farmland as well as 173 acres of high CBD almost immediately. Plus, the company has claimed to be breeding higher CBD hemp plants
Hemp Foods Australia -the longest-running aspect of the company as it was founded in 1999 is a full-scale operation supplying hemp oils, flours, seeds and protein to major brand names like Grill’d Healthy Burger Chain, Toms and Alpine Breads. HFA has deodorants, moisturizers, serums, balms and hand creams with more product development currently underway. The first harvest of hemp saw reduced yield, but the company expects more growth as the fine tune their farming practices. Also, HFA has sales and marketing team that is looking to ramp up production in 2019.
Elixinol AUS – will be the Australian arm of the operation upon launch generating revenue through medicinal cannabis sales. The company submitted their application to the ODC earlier this year.
It is also worth noting that Elixinol has an international footprint with investment in Japan especially. The company is working to be a supplier in the skincare and health foods markets there, but it appears the expansion plans are only now forming.
ELLXF posted some interesting financials for the first half of 2018 demonstrating 110% organic revenue growth from the same time last year. All segment were up, but dietary supplements accounted for 84% of the revenue. The company did see sizeable operating expenses, but this is mostly attributable to growing operations in the Unted States. The company still has a sizeable cash position of $14.2M after a $40M raise in late September.
“The global cannabis market is growing at a rapid rate and Elixinol Global recognises the need to move quickly to leverage the opportunity around the business,” stated Elixinol Global CEO, Paul Benhaim, in the company press release. “This funding ensures we can seize the market opportunities in front of us, and in doing so, propel the business toward its next phase of growth.”
Another thing to take note of in Elixinol is their relationship to farmers and quality control. Benhaim has 25 years in the hemp industry and understands the sector better than most, which has led the company to form key relationships with agricultural suppliers like Tiverton Agriculture (based in Australia) and Colorado Cultivars along with their own research and development.
Since jumping on the OTC, ELLXF has exhibited an upward trajectory – a 29% increase since listing – and solid volume as of late. With a Farm Bill looming, Elixinol has an established operation and with plenty of cash could even initiate an acquisition to accelerate what appears to be sustainable growth.