Elixinol Global Limited [ASX:EXL] listed on the Australian stock market back in January 2018.
It’s now one of the premier names in the Australian cannabis sector. The company is headquartered in the US state of Colorado.
EXL’s primary business is selling hemp extracts and supplements. These contain a cannabinoid known as CBD.
On Thursday, Elixinol announced it has a new deal in place with a US company called Pet Releaf.
Pet Releaf provides CBD oils, topicals and treatments for animals. According to Pet Releaf, its products can be found in over 4,000 stores in the US and around the world.
The agreement between EXL and Pet Releaf will see Pet Releaf purchase $18 million in products from EXL over an 18-month term.
In April, EXL took a 25% equity stake in Pet Releaf. The current deal is an example of how two businesses can complement each other.
What’s next for EXL?
In addition to its partnership with Pet Releaf, EXL has recently partnered with a company called PharmaCare.
This partnership will bring forth co-branded CBD-based capsules to the market.
These capsules will be sold via Holland & Barrett, the UK’s most prominent health and fitness retailer.
The product will be called CBD+ and will include EXL’s ‘high strength, full spectrum CBD’…along with a bunch of vitamins and minerals.
According to EXL, this partnership with PharmaCare ‘positions Elixinol as a leading player in the developing UK CBD market’.
Now, there is one more point I wanted to raise regarding EXL.
I suggest you read Callum Newman’s industry-wide report on ASX cannabis stocks, which you can get here.
Callum recommended EXL to subscribers of his Small Cap Alpha service in August last year. He recommended they sell half of their shares in March for a 227% gain!
That’s the potential of cannabis stocks on the ASX. For Callum’s latest recommendations on cannabis stocks, I urge you to go here while you can.
Please note this is not a recommendation to buy or sell EXL. It’s an update only.
Until next time,