"" the fact that these guys are just glorified nut processors!""
Elixinols 50% joint venture has commenced preparations for the 2018 hemp harvest (700 acres) which will see premium quality hemp grown, using genetics optimised for Elixinol’s proprietary formulation and production efficiencies. The NCHPP joint venture will secure the ongoing supply of Elixinol USA’s products that are distributed throughout the USA and to over 40 countries globally and support the Company’s plans for sales and revenue growth.
These new cultivation activities are being implemented in parallel with Elixinol USA’s
Manufacturing Supply Agreement with Colorado Cultivars USA LLC (Colorado Cultivars)
which has been renewed for a further 12 months. The agreement requires Colorado Cultivars to supply Elixinol USA with a minimum amount of organic hemp flower in monthly instalments up until October 2019.
To increase production capacity and facilitate future growth, Elixinol USA will relocate to a
newly leased facility in the Colorado Tech Centre (CTC), located in the neighbouring town of
Louisville. This move will provide Elixinol USA with double the usable space available for its
processing, manufacturing and fulfillment operations, preparing it for future growth. Relocation and commissioning of the leased facility is expected to be complete by October 2018.
In April, Elixinol Global’s subsidiary Hemp Foods Australia began harvesting a local Victorian
crop across nearly 700 acres of farmland. This harvest represents a key milestone for our
farming operations. The crop is important for Hemp Foods Australia’s farming operation as it
provides important data points in relation to soil quality, irrigation, and seed varieties.
After the harvest is completed the Hemp Food Australia farming team will commence
preparations to sow more hemp in Victoria and other states in the second half of 2018. These crop growth activities are in line with the Company's strategy to become the largest hemp grower in Australia.
Licence applications for Elixinol Australia to participate in the Australian medicinal cannabis industry were submitted to the Australian Government’s Office of Drug Control. Plans are well advanced to commence construction of a state of the art cultivation and GMP manufacturing facility in New South Wales.
CEO Paul Benhaim started working hemp back in 1993. He wrote nine books on industrial hemp and created business courses to help others launch successful companies in the space, and eventually he led the opening of a hemp foods manufacturing facility in Australia that became the largest of its kind in the southern hemisphere.
Elixinol US revenue was up 86% in 2017, last quarter was 94% revenue growth. The company has a 10 percent stake in Elixinol Japan, a company formed to work on the legislative environment there and conduct clinical studies. It is also focusing on South America.
So Nano_Land, Elixinol are invested in a range of emerging cannabis related sectors, including hemp-derived CBD dietary supplement and wellness products, hemp food products, cultivation and manufacture of medicinal cannabis products. I live near Bangalow and have seen Pauls Hempfood business grow, and believe this company has great growth potential in the future.
EXL Price at posting:
$1.52 Sentiment: Hold Disclosure: Held
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