Elixinol Global Limited (Elixinol Global or the Company (ASX:EXL; OTCQX:ELLXF) is pleased to announce that it has successfully completed an institutional placement (Placement) to fund its ongoing expansion initiatives, with a particular focus on growing its USA CBD business.
The Company will issue approximately 12.8 million shares at A$3.90 per share, representing an 8.7% discount to the last closing price as at Monday, 3 June 2019. The Placement represents 10.3% of the Company’s shares on issue prior to the Placement.
Proceeds from the Placement will be used to:
- Continue global expansion plans, with a particular focus on the USA CBD market;
- Provide general working capital funding required as part of continued expansion;
- Expand Elixinol’s production facilities in Colorado, USA by an additional ~23,000 square feet to
more than double the Company’s current production capacity; and
- Undertake opportunistic strategic acquisitions and enter joint ventures in select markets.
Elixinol Global Chief Executive Officer, Mr Paul Benhaim, said: “I acknowledge the strong support of new and existing institutional investors to accelerate the Company’s expansion in the US and globally.
We are witnessing an unprecedented positive shift in consumer appetite for CBD and hemp derived products. Elixinol plans to double its current production capacity in the US. Further, by securing additional raw materials, the Company will be well positioned to accelerate the growth of Elixinol branded CBD products and strategic opportunities.”
Bell Potter Securities Limited acted as Lead Manager to the Placement.
The Placement shares were issued under the Company’s placement capacity in accordance with ASX Listing Rule 7.1 and will settle on Tuesday, 11 June 2019 with allotment and trading to occur on Wednesday, 12 June 2019.
New shares issued under the Placement will rank pari passu with existing fully paid ordinary shares.
About Elixinol Global Limited Limited (ASX:EXL; OTCQX:ELLXF)
Elixinol Global through its businesses has a global presence in the cannabis industry including hemp-derived CBD dietary supplements, hemp food and wellness products, as well as cultivation and manufacture of medicinal cannabis products. EXL’s businesses include:
- Elixinol LLC (“Elixinol”), founded in 2014, is a manufacturer and global distributor of hemp dietary supplement and skincare products, with operations based out of Colorado, USA.
- Hemp Foods Australia Pty Ltd (“Hemp Foods Australia”), founded in 1999, is a leading hemp food wholesaler, retailer, manufacturer and exporter of bulk and branded raw materials, and finished products.
- Nunyara Pharma Pty Ltd (“Nunyara”), formerly known as Elixinol Australia, was founded in 2014 to participate in the emerging Australian medicinal cannabis market and submitted licence applications for cultivation and manufacture to the Office of Drug Control in early 2018. These applications are currently pending approval.