Elixinol Global Ltd. has raised its stake in subsidiary Elixinol Japan from 35% to 50.5% after a restructuring of the business.
The company paid AUS$2.2 million ($1.6 million) for the additional shares, with the investment funded out of Elixinol’s AUS$14.2 million ($10.2 million) cash bank, the company said in a release.
Elixinol Japan made AUS$600,000 ($433,000) in revenue and broke even in the first half of 2018.
Looking to expand distribution
“Japan is a health conscious market and one which is quickly starting to recognize the nutritional and health benefits of hemp-derived CBD and hemp food products,” said Paul Benhaim, Elixinol Global’s CEO, who reported positive ongoing discussions with Japanese distribution partners, some of whom have suggested moving Elixinol products into more mainstream outlets. The company’s products have so far been in limited distribution at high-end retailers. Benhaim also said “regulatory support” in Japan should support market growth.
“This investment will enable us to further grow the market and retain our reputation as the No. 1 hemp-derived product supplier in the Japanese marketplace,” said Makoto Matsumaru, CEO of Elixinol Japan.
