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Cannabis Companies Beginning To Ante Up For Bets On Hemp
[Benzinga]
New Frontier Data
BenzingaFebruary 27, 2019
Last week, the hemp and cannabis markets were abuzz with news that cannabis giant Tilray Inc. (NASDAQ: TLRY) was acquiring Manitoba Harvest for $419 million CAD ($319 million USD). Manitoba is the world’s largest hemp-foods manufacturer, with products in more than 16,000 retail stores throughout North America.
For Tilray specifically, the move represents a significant step in its attempt to stake a claim in the U.S. hemp market. In a broad sense, the acquisition reflects the growing trend of cannabis operators’ seeking to acquire hemp companies in aims to stake claims in the ever-expanding hemp-CBD market, and sets the stage for an increasingly competitive and dynamic year for the hemp industry.
The Hemp Business Journal estimates that sales generated by the hemp-CBD market will grow from $390 million in 2018, to one worth approximately $1.3 billion by 2022. As U.S. cannabis companies continue to struggle under federal prohibition, and as Canadian operators continue to look for ways to grow their brands, the hemp-CBD market presents attractive possibilities.
Because of the 2018 Farm Bill, hemp and its derivatives are now treated as agricultural products rather than controlled substances. Per agricultural products, there are far fewer financial and regulatory barriers for companies looking to corner the hemp market, while there exist any number of opportunities for cannabis companies seeking to generate additional revenue from segments such as hemp foods.
Hemp-CBD may be considered a hot commodity in today’s market, but regulators throughout the United States and Europe have been slow to embrace its use. In the United States, states are cracking down on businesses that sell edibles products containing CBD, and the U.S. Food and Drug Administration (FDA) continues to send warning letters to companies marketing CBD supplements as health products.
Similarly in Europe, the hemp-CBD market is experiencing its own obstacles. Recently, the European Food Safety Authority classified CBD as a “novel food” additive, which means that companies producing CBD-based food products or extracts will have to put their products through a safety evaluation before earning placement in the European market.
Hemp food products that do not contain CBD, meantime, have not been subject to the same limitations. That makes Tilray’s acquisition that much more significant: While regulators in both the U.S. and EU take their time determining how to regulate CBD, Tilray will be generating revenue through Manitoba’s existing products. Once the CBD issue is resolved, Tilray will thus be better positioned to pivot towards hemp-CBD.
Other cannabis companies have adopted similar models to Tilray’s. One company which has found success straddling the fence between hemp and cannabis is Elixinol Global (OTC: ELLXF).
Elixinol Global is the parent company of three businesses: Hemp Foods Australia, Elixinol (which sells CBD products), and Nunyara (a medical cannabis company seeking licensure in Australia). Over the last year, Elixinol Global has seen its sales grow by 121%, to approximately $26 million. The vast majority of that growth has been driven by sales of CBD products.
Two of the other biggest cannabis companies (besides Tilray) looking to capitalize on the growth of the hemp-CBD market are Aurora Cannabis (NYSE: ACB) and Canopy Growth Corp. (NYSE: CGC).
Late last year, Aurora announced that they would acquire Europe’s largest organic hemp company, Agropro UAB, and its sister company Borela UAB (which processes and distributes hemp) for $9.5 million CAD. Though little has been heard about Aurora’s hemp plans, there are rumors that the company is in “serious talks” with Coca-Cola to develop a line of CBD beverages. If those rumors turn out to be true, Aurora could instantly become a powerful force in the hemp industry.
Instead of acquiring an existing hemp company like Aurora and Tilray, Canopy Growth seems to be laying the groundwork for setting up its hemp infrastructure. Late last month, Canopy announced that it had received licensing to cultivate and process hemp in the state of New York. So far, Canopy has pledged to invest $500 million in its hemp production capacity, and hopes to expand its hemp footprint to two more states.
While regulators continue to grapple with the question of how to regulate CBD, the cannabis industry is betting big on hemp-CBD. Though no clear leader in this sector has yet emerged, one thing is certain: The hemp and cannabis segments are becoming increasingly intertwined.
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
https://finance.yahoo.com/news/cannabis-companies-beginning-ante-bets-222746649.html
ELLXF: Elixinol Launches Water-Soluble Flavored CBD Powder with Proprietary Full-Spectrum Blends
By GlobeNewswire, February 28, 2019, 02:45:00 PM EDT
Leading Hemp-Derived CBD Brand Enters New Category as Demand for CBD Beverages Increases
DENVER, Feb. 28, 2019 (GLOBE NEWSWIRE) -- Elixinol, one of the most influential CBD brands in the world with nearly three decades of experience in the hemp industry, announces its latest product innovation, Create | Build | Dream (C | B | D), a full-spectrum water-soluble hemp CBD powder. The C | B | D powder comes in three distinct flavors and proprietary terpene profiles - berry, citrus and cocoa - each optimized for varying energy needs throughout the day, from a morning boost to an afternoon pick-me-up or evening relaxation.
Each water-soluble flavor is gluten-free, non-GMO, dairy-free and vegan, and is packaged in easy-to-use single-serving sachets, making daily consumption especially convenient for on-the-go consumers. Powered by OLEO™, Elixinol C | B | D powder offers double the bioaccessibility of regular CBD, meaning higher potency and greater potential accessibility. The packets are easy to mix into the hot or cold beverages wellness-driven consumers are already drinking throughout their day like smoothies, water or tea.
CREATE, with its uplifting berry flavor, is perfect for adding to a morning smoothie, helping to increase alertness with 10mg of full-spectrum hemp CBD.
BUILD, the bright midday citrus flavor, is perfect for adding to tea or water and is formulated to help manage energy slumps and increase focus, as well as temporarily reduce exercise-induced pain, with 10mg of full-spectrum hemp CBD.
DREAM, specially designed for hot beverages, contains a 5mg serving of cocoa-flavored full-spectrum hemp CBD to aid relaxation in preparation for a good night's sleep.
"Our CBD powders are all-natural, taste great and mix well with beverages, no matter the time of day," said Chris Husong, Elixinol's Sales & Marketing Director. "Imagine you're feeling tired after a long day, but you have to rally for a business dinner. Instead of having another cup of coffee, mix BUILD into your afternoon water to push you through the evening in a focused and productive way - without the jitters or potentially unwanted effects of caffeine. Or, if you're having trouble falling and staying asleep after a particularly intense day, DREAM will help you get the much-needed rest for your busy day tomorrow."
CBD, or cannabidiol, is one of many naturally occurring compounds called cannabinoids, which are found in humans, animals and plants. Consuming CBD replenishes the natural cannabinoids that are generated by our body's endocannabinoid system. A full-spectrum CBD extract contains all of the cannabinoids, terpenes, antioxidants, phytonutrients and flavonoids that are naturally present in the hemp plant, whereas an isolated CBD strips away most of these beneficial ingredients to produce a more manufactured product.
"The proprietary formulation of Elixinol's Colorado-grown and extracted full-spectrum CBD allows for precise serving sizes, and an even more efficient and effective absorption process, thanks to our partnership with OLEO," said Gabriel Ettenson, President of Elixinol. "We're proud to help consumers navigate the rapidly growing CBD marketplace by offering quality products and quality delivery systems."
"We are thrilled to be partnering with Elixinol to help them create this line of groundbreaking Powered by OLEO™ products using our microencapsulation process. Our technology complements Elixinol's premium full-spectrum hemp extracts by providing increased bioaccessibility and removal of any bitter aftertaste," said Skyler Bissell, CEO of OLEO.
Elixinol C | B | D powder is available at Elixinol.com/product/category/cbd-powder for a suggested retail price of $59.99 for one 30-pack or $44.99 for one 21-count sampler pack.
About Elixinol
Colorado-based Elixinol, co-founded by Paul Benhaim, hemp entrepreneur since 1991, is widely regarded as one of the most influential CBD brands in the world. With a proven track record of growing and extracting premium-quality hemp, Elixinol is one of the few CBD hemp extract brands with complete seed-to-sale control over its products. Elixinol also conducts rigorous third-party laboratory testing and quality control. Elixinol distributes hemp-derived CBD products in 40 countries globally including North and South America, throughout Europe, Asia, and the Pacific Region under its own label as well as bulk CBD and wholesale CBD. Elixinol is a wholly owned subsidiary of Elixinol Global (EXL) (elixinolglobal.com) which is publicly traded on the Australian Securities Exchange and on the U.S. OTC (ASX:EXL, OTCQX:ELLXF). More information available at Elixinol.com.
About OLEO
Founded in 2015, OLEO is a food technology company who specializes in powder formulations using a patent-pending cannabinoid micro-encapsulation that dissolves quickly in cold water. The OLEO micro-encapsulation process has been shown to double the bioaccessibility (potency) of CBD versus typical CBD oil over the first two hours after consumption.
Media Contacts:
Blythe Tokar
+1 202-292-4573
elixinol@wearemultip.ly
Chris Husong
Elixinol
+1 844-804-3504 ext 420
I was thinking about eating one earlier.
Who's up for a Hemp burger?
https://twitter.com/ElixinolGlobal
I love this presentation. They have $43mln in cash !
Anyone got a link to the conference call recording?
I would recommend starting with Elixinol regular or mint tincture oil. And take the recommended dose.1/4 dropper or .5 ml twice a day. You can increase your dosage as needed. You can't take too much, so no worries about that. If you have chronic pain from arthritis you will most likely increase the dosage. I have increased to 1 ml 2 to 3 times a day.
Hope this helps! Give it a try. You won't regret it.
I have chronic knee pain and ordered the 60 capsule bottle (15mg per capsule) from Elixinol and take one in the morning and one in the evening and it has worked wonders for my pain relief and anxiety.
For someone just starting with CBD, I'm wondering what to order. Would like to quit the Advil I take for mild arthritis. I'm clueless about where to start. Thanks for the heads up.
I think the Aussies get it!
Great presentation. This is a hidden gem. Came across this a few weeks ago. After many hours of DD, I believe this company is undervalued relative to its peers. The product is excellent and the fins are strong. Fundamental investors who have a bit of patience will do well here.
I have been able to lower the dosage of blood pressure prescription medication as a result of lowering my blood pressure with a healthier alternative like CBD.
I take it to lower my blood pressure. And have a more calm state. Kind of personal information to be sharing.
When you say it's the best, what exactly are you rating it on?
Yes. And I just bought another bottle for $224 after my 10% discount. I've tried over 10 brands since 2015. Elixinol is the best. I use Charlotte's web and plus cbd among others.
Conf.Call..11:00.am.Tuesday,Feb.26th.Sydney=6:00.pm.Monday,Feb.25th.CST.USA.EOM
has anyone tried the elixinol cbd product..?
Can't wait till we uplist. It's going to be awesome!
ELLXF CEO interview
Twitter
Elixinol Global Limited
? @ElixinolGlobal
The latest @OTCMarkets newsletter features an interview with @elixinolglobal $EXL CEO Paul Benhaim. Paul discusses the company’s rapid growth, how it differentiates itself from competitors & the benefits of trading on the OTCQX https://www.otcmarkets.com/files/February2019_Newsletter.html?utm_medium=email&utm_campaign=OTC%20Markets%20Monthly%20News_February%202018&utm_content=OTC%20Markets%20Monthly%20News_February%202018+CID_4213ac67a883801a0cdadbf336f9f96f&utm_source=Email%20Campaign&utm_term=Read%20the%20full%20interview#interview2 …
6:36 PM - 21 Feb 2019
Thank you for the update
What's ur take on tilray buying the only hemp gras certified company by the FDA
Bill goes before Colorado House Finance Committee on 25 Feb
https://leg.colorado.gov/bills/hb19-1090
Top 10 IPOs on the ASX in 2018
By Lauren Barrett -
February 20, 2019
IPO ASX 2018 initial public offering Australian Stock Exchange
IPOs listing Top 10
77% of companies that listed on the ASX in 2018 finished the year below their issue price.
There’s no way of sugar coating it, 2018 was a disappointing year for initial public offerings (IPOs) on the Australian Stock Exchange (ASX).
Of the 95 companies that listed, 73 finished the year below their issue price.
In total, the average return share price return from IPOs by year’s end was a dismal -16.4%, which is not the sort of returns early stage investors are looking to make.
However, it wasn’t just IPOs that were impacted. It was a rocky year for the market overall, with the ASX 200 index shedding 7% during 2018, following a sell-off in the market towards the end of the year.
The good news
Of the companies to make their way onto the ASX, 79 had a listing market cap of $100 million or less, showing that small caps still led the charge when it came to new opportunities.
Looking at initial share price performance for new ASX entrants, 53% of companies closed out the opening day’s trading session above their IPO price, with the average first day return being 9.4%.
Capital raised
During 2018, companies listing on the ASX both big and small raked in a combined $8.4 billion in IPO capital raised – up more than 25% on the 2017 figure of $6.7 billion.
What made 2018 different from other years is that it heralded three $1 billion-plus market cap IPOs, which listed after raising substantial revenues: Viva Energy Group (ASX: VEA), Coronado Global Resources (ASX: CRN), and L1 Long Short Fund (ASX: LSF).
Combined, the $1 billion-plus market cap IPOs generated 56% of the $8.4 billion raised, with the three companies pulling in a combined $4.75 billion in value.
Of the $8.4 billion raised, companies with a market cap below $100 million, contributed $710 million, or 8% of the total funds raised.
On average, a small cap stock raised $9.86 million for its IPO, down on the $13 million average secured in 2017, suggesting small cap companies failed to attract the same level of investor interest.
Additionally, during 2018, only 72% of the ASX debutants were able to meet their target raise amount, which was down on the prior two years.
In 2017, 79% of new listings achieved their goal, with 2016 seeing a stronger figure of 83% hit their target. This could be a potential trend signifying a drop in the quality of companies listing combined with a lack investor appetite.
Sector breakdown
Of the various sectors represented on the ASX, the bulk of the market entrants in 2018 came from the mining and resources (37%) and information technology fields (18%).
Mining, resources and energy accounted for the majority of funds raised – about 58%, with the finance sector locking-in around 30% of all IPO revenue.
On a listing basis, 35 IPOs were mining and resource-focussed stocks, while 17 were technology and 13 finance.
Drilling deeper into the data, out of the 35 mining and resource listings, 60% had gold-focused projects, while 23% were primarily looking for copper and 14% had cobalt projects.
It’s also worth noting that despite having the lion’s share of listings, only one resources company made it into the top 10 IPOs for percentage return in 2018.
Overall, most sectors generated negative three-month returns, with IT, healthcare and essential consumer goods the only three to give investors a return on their outlay.
Of the three sectors, essential consumer goods gave investors the biggest return of almost 40% on their money after three-months.
IPO performance 2017 vs 2018
Throughout 2018, 95 IPOs were accounted for. While this was a decent figure, it was below the 2017 listing number of 110.
Of the 2018 IPOs that made their way onto the ASX, 79 were small caps with a market cap of $100 million or less.
IPOs 2018 vs 2017 ASX capital raised return
Although still a healthy amount, it was lower than the 88 small caps that muscled their way on to the ASX in 2017.
Despite the lower number of listings, investors threw a lot more cash behind what stocks actually made their way onto the ASX, with 2018 IPO revenue up on 2017 levels – indicating the cash was there, but investors were more selective as to which stocks they put their money into.
List of the top 10 IPOs in 2018
Although many IPOs underperformed in 2018, several stars shone bright.
Top 10 IPOs 2018 ASX
Small Caps has compiled a list of the top 10 performing companies based on return at the end of the year.
Adriatic Metals (ASX: ADT)
Since listing in April, shares in the zinc and base metals explorer have exploded on the back of impressive high-grade drilling results from the Vares project in Bosnia.
Adriatic Metals successfully raised $10 million during its IPO, managing to secure financial endorsement from base metals giant Sandfire Resources in the process.
Sandfire subscribed for $2 million to secure a 7.7% stake in the company, with the parties also entering into a strategic partnership which sees Adriatic benefit from Sandfire’s technical and strategic expertise.
Adriatic aggressively pushed on with drill programs at the Vares zinc-polymetallic exploration permit in Bosnia following its IPO in a bid to fast-track the activities to a development-ready stage.
The UK-based company is anticipating a maiden mineral resource estimate for the Rupice deposit, located within the Vares project, in early 2019
Results to date have been encouraging, with drilling returning thick zones of high-grade mineralisation over 42m grading 14.1% zinc, 8.4% lead, 245 grams per tonne silver, 5.7g/t gold, 1.4% copper and 34% barium sulphate from 222m.
Exopharm (ASX: EX1)
Anti-ageing products promising to help people remain forever young is a booming business. Combining anti-ageing techniques with improved health and wellness, however, is in its infancy. This is something Exopharm is looking to change.
The Australian biotech firm successfully raised $7 million ahead of its December listing with plans to develop and commercialise its products for regenerative medicine treatment.
Its vision is to harness the potential potency of exosomes to initially treat conditions such as wounds, osteoarthritis and dry age-related macular degeneration.
Exosomes remains an emerging field, with research pointing to exosomes as being a crucial output of adult stem cells to drive healing and regeneration in humans.
With its Ligand-based Exosome Affinity Purification technology, the company is seeking to manufacture exosomes to enable studies in humans for age-related conditions.
Elixinol Global (ASX: EXL)
Cannabis stock Elixinol Global has had a stellar rise on the bourse following its ASX emergence in January.
The company, which operates in the industrial hemp, dietary supplements and emerging medicinal cannabis sectors, raised $20 million via its IPO with funds directed towards the development of its Australia-based facilities for cannabis cultivation and manufacturing.
The company reported bumper revenue for the first half of 2018, with Elixinol chief executive officer Paul Benhaim claiming it was the only ASX-listed company in the cannabis sector to record a profit so far.
Elixinol’s growth has been driven by strong sales in its consumer products division, which includes hemp-derived foods and dietary supplements.
The company’s performance to date has been well received by investors, and with interest in cannabis stocks showing no signs of abating, Elixinol will be looking to continue its strong 2018 performance this year.
Atomos (ASX: AMS)
It hasn’t been listed long, but Atomos is already proving a hit with investors.
The global video technology company is seeking to further tap into the burgeoning camera equipment market following its December IPO where it raised $6 million.
The company’s listing on the ASX comes after the firm achieved $35.6 million in revenue for the 2018 financial year.
Atomos, which has offices in the US, Japan, China, UK and Germany, delivers video production devices for the content creation markets.
The company claims its technology unlocks the potential of digital cameras, enabling higher quality video and greater creative flexibility at a lower cost.
Atomos is focused on expanding into the growing social and entertainment video content markets and plans to use the IPO funds to support its global growth strategy, which include adding to its pro video segment.
Keytone Dairy Corporation (ASX: KTD)
New Zealand-based Keytone Dairy Corporation is another company that has had a strong run since its ASX listing in July, which saw it raise $15 million.
The manufacturer and exporter of dairy and nutrition blended products is experiencing strong product demand out of global markets such as China and South East Asia after beginning production of powdered milk in 2013.
Since the company’s ASX debut, Keystone Dairy has reported healthy growth figures, with revenue for the first-half of the year to the end of September totalling $1.38 million.
The company is pushing ahead with its phase of rapid expansion and investment, with construction of the second purpose-built manufacturing facility and associated plant and equipment continuing in order to more than triple the production capacity.
PayGroup (ASX: PYG)
While Melbourne-headquartered PayGroup is in the business of human resource management software, its payroll services business props up its revenue figures.
The company has a global reach, handling payroll and human resource services for companies located in 18 countries across the Asia-Pacific region.
After abandoning a float in 2017, the company raised $8.5 million via its IPO in May to help fund its expansion plans and bankroll technology upgrades.
The company expressed a positive business outlook in its half yearly reports, with its channel partner program expected to be an important growth driver for the company. International referral partnerships are expected to support expanding PayGroup’s reach into North America, UK and Europe.
ReadCloud (ASX: RCL)
It hasn’t been a smooth ride for E-learning solutions provider ReadCloud since its February ASX debut, after having raised $6 million for its IPO.
With shares steadily climbing for the first six months of the year, the company posted a maiden loss of $1.2 million in August which wasn’t well received by investors. This was despite it recording a 155% increase in revenue to $2.1 million.
While the company’s share price hasn’t clawed back from the earlier losses, ReadCloud has affirmed its strong sales pipeline and investors are keen to reap the benefits of the company’s growth ambitions.
Management estimate that ReadCloud’s software and products will be in more than schools in the 2019 school year, representing a 106% compound annual growth rate on the 2016 financial year.
Calix (ASX: CXL)
Shares in Calix appreciated quickly upon its ASX listing, after having raised $8 million, as the Australian technology company managed to attract investor interest from the get-go.
While the stock has tapered off slightly since its share price high of $0.95 in July, it has managed to clinch eighth spot in the top performing IPO’s for 2018.
The company’s core technology is a patented kiln built in Bacchus Marsh, Victoria that produces mineral honeycomb. The minerals are then used to help protect sewer assets from corrosion.
As well as attracting a few high-quality institutional investors, its FY18 results produced some pleasing outcomes, including a boost in revenue and gross margins.
The company is continuing to make inroads across growing market segments such as the US, with its Southern California project set to go live this month. Under the project, Calix’s Charleston units will dose ACTI-Mag into the city’s sewers to mitigate odours.
Security Matters (ASX: SMX)
The Israel-based supply chain integrity and blockchain company joined a somewhat crowded market when it listed after a $6 million raise in October, becoming one of 18 Israeli companies to trade on the ASX.
Security Matters was founded on its “Intelligence on things” marking technology, which claims to offer a safe and effective way of tracking items and providing a tamperproof record of movements through the supply chain from raw materials to manufacturing and sale.
The technology is reported to provide a viable solution across multiple sectors including the global anti-counterfeit market, which was estimated in 2015 to be worth US$1.77 trillion.
The company has kicked off an initial proof of concept project with agriculture firm Hazera Seed to explore the feasibility of embedding its technology into seeds.
ClearVue Technologies (ASX: CPV)
Renewables were the flavour of the year and Perth-based innovative building material developer ClearVue Technologies has certainly managed to tap into the renewable energy boom.
The company operates in the Building Integrated Photovoltaic (BIPV) sector which involves incorporating solar technology into glass and building surfaces to produce renewable energy.
2018 was a big year for ClearVue after raising $5 million for its listing, with the company, receiving accreditation to commercialise its solar window technology into both the Australian and European markets.
The company’s progress in moving towards monetising its technology has helped it tie for tenth spot on the top performing IPO list for 2018.
EMvision Medical Devices (ASX: EMV)
Listing in December was Brisbane-based EMvision Medical Devices which successfully listed following a $6 million oversubscribed IPO.
The funds raised will be used to develop the company’s medical imaging technology – a portable, cost effective, non-invasive brain scanner that could speed up the diagnosis of brain injuries and stroke.
The company is currently undertaking healthy human trials to evaluate how the clinical prototype performs in a real-world environment.
EMvision will then run a pilot clinical trial at the Princess Alexandra Hospital to collect data from patients with diagnosed ischaemic and haemorrhagic stroke, with confirmatory CT or MRI images.
ELLXF 2018 Results Conference Call on 2/26/2019
https://www.elixinolglobal.com/site/PDF/2372_0/ElixinolFY2018Resultsconferencecall
Byron Shire is in New South Wales, but the size isn't jiving. Perhaps the article got the size wrong. PR says 60 acres. Article says the facility is roughly 1 acres in size and that it will use less than 1 tenth the space which would make it about 10 acres.
Plus the pr said they would use about 4 of the 60 aces initially. We'll get clarification soon.
Nice find Aries4747
The proposed facility would be approximately 3,440 square metres, of which around half would be used for actual growing, with the rest devoted to drying, processing, a nursery, storage and administration. It would cover less than 10 per cent of the site and would use town water for cropping, owing to the highly controlled nature of the cultivation.
Seems to be, but I'm not positive.
Is this on the same site they purchased?
Awesome. Thank you
Byron’s first legal cannabis crop on the cards
https://www.echo.net.au/2019/02/byrons-first-legal-cannabis-crop-cards/
While there has been a lot of talk about medicinal cannabis of late, there has so far been little action on the ground in the part of the country where it grows like a weed.
That’s about to change if a development application (DA) currently on exhibition in Byron Shire is approved.
The $7.25million, 16-person, four-greenhouse operation will turn out two-to-five tonnes of medicinal cannabis a year, according to the DA.
But if you think ‘with that amount of green stuff being produced, the owners wouldn’t notice a few missing buds’, think again.
The proposed site at 955 Friday Hut Road, Binna Burra, is almost entirely surrounded by Byron Creek, the facility itself will be purpose-built and highly secure, and 24/7 security staff will be onsite.
The proponent, Elixinol Global Limited, is an ASX listed company that already has a foot in the door of the international medicinal cannabis industry, including in the US and Europe.
The growing of cannabis and associated processing is a permissible use, according to Bryon’s LEP.
The proposed secure Elixinol medical marijuana facility. No you won’t be able to nick a few buds.
Image Elixinol
Specially designed facility
If approved, cannabis cultivation in a specially designed facility would replace the three existing chicken sheds on the site.
The proposed facility would be approximately 3,440 square metres, of which around half would be used for actual growing, with the rest devoted to drying, processing, a nursery, storage and administration. It would cover less than 10 per cent of the site and would use town water for cropping, owing to the highly controlled nature of the cultivation.
The height and scale of the buildings is roughly equivalent to that of the existing chicken sheds, which it would replace, meaning it would not impact the views of surrounding properties.
‘The proposed development creates no dust, no noise, no external spray drift, and all harvesting and processing will take place from within the building,’ the application states.
‘The existing poultry sheds with up to 200,000 birds can produce unpleasant odours. The proposed use will have no odour at all,’ it continues.
There will be parking for 22 cars, with an anticipated 44 car movements per day and two heavy vehicle movements per month.
Neighbours approve
Affected neighbour Wayne Penn told Echonetdaily he had written a submission ‘heartily endorsing’ the proposal, which he said would be ‘both an environmental and ethical improvement on the existing, ageing mass chicken cultivation facility’.
‘Currently we get a distinct, unpleasant odour around two weeks out of every eight-week chicken cycle and there are periods of ongoing noise during the removal of live chickens and cleaning of the sheds at the end of every cycle.
‘The location is ideally sited for a medical cannabis growing facility as it is almost encircled by Byron Creek, creating a natural security barrier,’ he said.
A spokesperson for Byron Shire Council said it had received 14 submissions relating to the proposal but could not advise how many were in support and how many opposed.
The exhibition period closes today (Wednesday February 20).
The author is an affected neighbour.
https://www.thinkadvisor.com/2019/02/13/why-a-cannabis-focused-investment-manager-likes-these-10-companies/?slreturn=20190119082454
Harrison calling it a 2-3 trillion dollar industry. We're on the list!
Elixinol Global Ltd (OTCMKTS:ELLXF) Implementing Its International Strategy
https://insiderfinancial.com/elixinol-global-ltd-otcmktsellxf-international-strategy
By Jim Bloom
Posted on February 19, 2019
The uses of cannabis and its associated products continue to grow by the day. This has led to an explosive growth being witnessed in the cannabis sector; growth which has dragged on to the cannabis companies operating therein.
Presently, cannabis operators continue to focus on different uses of cannabis, allowing them to focus on diverse market segments and therefore focus on different market niches. Consequently, there has been a lot of differentiation within the sector as companies continue working towards marketing and growing their brand. Using these, cannabis operators are continuously growing their market share across the countries within which they operate.
Finally, the key pillar has been globalization. Firms continue to grow their reach across the globe thereby tapping into new markets and cementing their market share and position in these new countries.
One entity which has successfully been able to implement each of the above is Elixinol Global Ltd (OTCMKTS:ELLXF).
The company has continued to grow its operational capacity both in terms of growing its product line and in internationalization. The result of the above has been that they have continued to enjoy a price increment throughout the period since October, going against the price decline faced by other cannabis players in the industry.
The company thus enjoyed an increase in its valuation, a factor which was pegged to the growth in its fundamentals as well as its general strategy. This led to an over 155% price increment, leading to an eventual price of $2.55 per share, up from their lows in September of $1 per share. The same period also witnessed the number of shares turnover rise from a few hundred thousand shares to over 1.5 million shares.
Readers can review the above price action in the chart below:
ELLXF Daily Chart
With the above price action, it is expected that the value proposition from the company is significant. We, therefore, have opted to have a look at this and establish what exactly has drawn investors to the firm at this high rate.
History of ELLXF
Before going into the intricacies, let us have a look at the history of the firm so as to bring the issues into perspective.
Elixinol Global Limited was founded back in 2017 and headquartered in Sydney, Australia. The firm has since been oriented towards the cannabis sector, specifically in industrial hemp and medical cannabis. It is involved in both the manufacture and distribution of dietary supplements based on industrial hemp as well as skincare products. Furthermore, they also develop medical cannabis.
ELLXF has continued to orient itself to the original strategy of growing its product line and consequently marketing it globally. Further to this, the firm continues to grow its reach across continents, and this, we believe, has been the reason why they continue to grow in terms of valuation and share price.
Developments affecting ELLXF
The firm’s recent developments have been tied to the growth of its brand across the globe. This is, therefore, the said case in the next section.
The New Zealand Launch
In late January, Elixinol announced that they had launched their brand within the New Zealand region. This was to be achieved through the company’s website and only available to the public on a prescription basis.
The above news followed the amendment of the Misuse of Drugs (Medicinal Cannabis) Amendment Act whereby CBD was removed as a B1 class drug and CBD with low THC levels was classified as a prescription medicine. Through this, CBD was thus categorized as a ‘therapeutic substance with little or no psychoactive properties.’ This effective de-scheduled CBD as a controlled substance in New Zealand.
The launch will allow individuals within New Zealand to purchase and therefore import CBD as long as it meets the requirements as set by the regulatory body. The patients can both import up to three months’ supply of cannabis drugs and, if traveling, leave with up to three months’ supply of the drugs as evidenced by their prescription.
Management at ELLXF has welcomed this decision, speaking to it having a lasting effect on the patients in New Zealand as well as assured the residents of high-quality output and delivery. According to ELLXF’s President, Gabriel Ettenson:
“As a company which meets and exceeds quality and import standards in 41 different countries, we welcome the opportunity to serve the people of New Zealand with premium quality CBD,”
Source:
Expanding Across Europe
ELLXF has continued on its expansionary strategy and grown its offices across Europe. The firm recently made key hires and opened offices in the United Kingdom, Netherlands and Spain.
This is set to ensure that they can tap into the over $130 billion in annual sales which are estimated to made within the continent by 2028. Furthermore, it ties to their strategy of growing across different continents and consequently ensuring their brand is synonymous with high-quality cannabis globally.
The move is also part of the commitment which ELLXF made when raising capital back in September. In sum, the firm’s outlook was pegged to their growth in Europe and Asia (specifically Japan). They are thus on course to meeting these objectives given their action plan and outlook.
Conclusion
ELLXF has been working on its international strategy in a bid to ensure that they achieve increased revenues as well as meet the commitments they had set when raising capital. The key thing, however, is the fact that these investments are well coordinated and meticulously implemented. With this in place, it is quite clear that the share price will keep rising. As a result, we are bullish about the stock.
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Disclosure: We have no position in ELLXF and have not been compensated for this article.
Good article. Nice find, DilJam.
Our reach is incredible.
ELLXF first to sell CBD at Tokyo Airport
Another first for @elixinol Japan, becoming the first company to sell #CBD products at Tokyo Airport. Amazing work by our Japanese team who continue to blaze a trail for hemp CBD! pic.twitter.com/zc3FOML0bT
— Elixinol Wellness Limited (@EXLWellness) February 15, 2019
Company stated that they will likely achieve $20 million in revenue for every national chain retailer that stocks their products. Wall mart, Target, Wegmans, Wholefoods, etc. Going to be a big growth sector.
Thanks for the input.
I’ve looked at the chart and seen the pattern it just doesn’t seem to pull back very much.
Having just jumped in around the low a few days ago and watching it shoot up I wanted some input from people who’ve been around here a minute.
But I do appreciate your response.
GLTA
deswag, if you check a chart, you'll see ELLXF pulls back momentarily after each mini-run. That might be best time for a buy.
Thankful I got In on the last dip the other day. I know there will be profit takers @$3....just can’t decide how much pullback. Have a feeling whatever occurs it will be immediately gobbled up.
Tick-tock
I feel the same way
SMART
Recently jumped in and wanting more. How much pullback expected.
Not wanting to chase but was late to the party.
Either way I’m gonna get loaded and go long. Thoughts?
I think ELLXF can outperform CWBHF in regards to % gain this year
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