Elixinol is not allowed to sell it's hemp derived CBD oil/spray...

Elixinol is not allowed to sell it's hemp derived CBD oil/spray products in Australia, even though they contain less than 0.03% THC.

This is how draconian and afraid and paranoid the Australian politicians and legislators are in this country. They will always protect big pharma, and live in fear of progressive beneficial change.

And this Australian legislative fear is not going to change, if ever.

40+ other countries in the world permit Elixinol sales, and are involved in extensive legislative changes and advanced cutting-edge medical research. Australia is likely to be the last, while countries like Canada and Germany and the USA are among the first. What are Australians afraid of ?

Which begs the question, why would any company like Elixinol, literally waste tens of millions of shareholder dollars in Australia on greenhouses, and medical research, and product development, and high labour costs etc, when they are not supported by government legislation.

The medical cannabis market in Australia will be minuscule on a world scale, so why bother ? Everything can be obtained faster and cheaper and earlier and of more advanced higher quality from overseas, in progressive countries like Canada, Germany and the USA.

And not only that, but those 40+ other countries are also far cheaper in terms of labour costs and infrastructure costs, and material costs, and regulatory costs, and research costs, and production costs etc, and so it goes on.

There is literally no point in spending millions on researching and developing a medical cannabis business in Australia WITHOUT legislative support, and even then, the market's so small, why bother. It is literally not good business decision making.

Elixinol will be relegated to simply selling hemp seed health bars, like muesli, and there are hundreds of them out there already in a small market. And they'll be relegated to selling face cream and other useless products in the Australian market, maybe some soap and rope... ha ha... It's hopeless.

All this is going to do is eat up all the profits from the North American operations.

I get why they are doing it though, and spending all that wasted money and time in high cost Australia - because one of the founders lives here. I'll let you decide if that is a good enough reason to waste millions of dollars of shareholder profits in Australia. Eventually the management may wake up though, driven by the sheer truth of economics and politics here down under.

The problem for Elixinol now, when assigning large dollars to Australian research and development, is that they are literally starting years behind the Canadian, German and USA companies, who have already done much of it, and at a substantially lower cost. And at least those countries allow the sale of their products. Doctors (who are strictly registered by the government) in Australia are only allowed to prescribe medical cannabis for the specific disease dictated by the government, and NOTHING else. This is not going to change.

So what would I be doing, from a purely business standpoint, if I was Elixinol ?

I wouldn't be spending (i.e. wasting) anything in Australia until there is legislative change. If Elixinol want to grow some hemp seeds and put them into some soaps and face creams, well fine, do that and market it, but absolutely don't go spending tens of millions of dollars on medical cannabis research and development in this country.

I would be using profits from the USA operations, and buying into (or establishing Joint Ventures with) other companies in Canada and Germany and the USA who are doing the things that Elixinol wants to do - it's as simple as that.

Keep it simple stupid - it's what works.

Gw