Coming off a year of challenges, Elixinol Global Ltd. said a recent capital raising and asset sales sets the stage for execution of a strategy focused on delivering branded CBD nutraceuticals worldwide.
“This is an exciting time for Elixinol despite the challenging global environment to which we all need to adapt,” said Elixinol founder Paul Benhaim, who has re-engaged with the company as Chairman of the board of directors. “We are rapidly broadening our customer reach and extending our Elixinol brand portfolio, signaling a new phase of growth for our now more focused business,” Benhaim, said.
Capital raising success
Elixinol raised $11 million in a recent offering of shares to institutional and retail investors at a 48% discount. The company also sold land owned by its Nunyara Pharma Pty Ltd. unit to a private individual for AUS $2.5 million (US$1.74); the deal was completed on May 22, Elixinol reported. Elixinol’s Hemp Foods Australia unit is currently up for sale as it looks to shed all non-CBD assets.
CEO Oliver Horn, a former Swisse Wellness executive who was named to head the company in April, said Elixinol has signed “wide-reaching” distribution agreements as it seeks to expand the Elixinol brand’s global presence.
“The rollout of our new Elixinol range is progressing well in the U.S. and Europe and we are now looking forward to further implementing our branded consumer strategy,” Horn said.
Horn’s track record
Elixinol said Horn’s experience in global route-to-market setups, consumer brand building and product innovation in the wellness industry make him the right fit to the strategy the company is now pursuing. He replaces Stratos Karousos, who left the company.
Along with expanding its international distribution, Elixinol’s strategy has the company focusing on its CBD business where it has infrastructure and production capacity – in the U.S., UK and other European markets. The company is prioritizing pharmacy and e-commerce sales channels globally to drive consumer education, creating new consumer campaigns and investing in social media influencers and brand ambassadors.
While the reset has so far failed to lift Elixinol’s share price (trading at about $0.15 in early June), Horn said the recent capital raising is a positive signal for the company. “We are very pleased with the overall result of the capital raising. Our strategy of creating a global Elixinol branded CBD supplements business has clearly resonated with our existing shareholders and new investors.”
Other board changes
Along with Benhaim, Helen Wiseman, an audit committee specialist with extensive international experience in food, pharmaceuticals and natural healthcare, also joined Elixinol’s board.
Benhaim had served as Elixinol’s CEO prior to Karousos. He is the founder of both Elixinol and Hemp Foods Australia. On the board, Benhaim replaces former chairman and non-executive director Andrew Duff. Duff and non-executive director Greg Ellery both resigned their board positions.
Benhaim said Horn’s arrival and the restructuring of the Elixinol board sets the company solid for the near future. “Following our recent new brand launch of our essential manufacturing and distribution business in the USA and Europe & UK, these appointments are a natural next step in the Company’s renewal and reset process,” he said.
Elixinol also recently announced that it is no longer a defendant in a class-action suit filed in the United States. The withdrawal of the suit is vindication of the company’s position that its products are accurately labeled and that the plaintiffs’ misleading conduct claims were without merit, Elixinol said.
