Elixinol Global Ltd (ASX:EXL) (OTCMKTS:ELLXF) has successfully completed a share placement to domestic and international institutional and sophisticated investors raising $40 million at $1.85 per share.
The group’s portfolio comprises three main divisions: Elixinol USA focused on dietary supplements; Hemp Foods Australia selling food products; and Elixinol Australia, the new start-up focused on medicinal cannabis.
Los Angeles, why is hemp CBD what all your friends are talking about? Find out for yourself! we’ll be at Cannabis World Congress Los Angeles today! Will we see you there? #CWCBExpo @CWCBExpo pic.twitter.com/mcbrHz2uTO— ElixinolCBD (@ElixinolCBD) September 27, 2018
The company listed on the ASX in January this year and raised about $20 million from an oversubscribed initial public offer.
Elixinol chief executive officer Paul Benhaim said: “The global cannabis market is growing at a rapid rate and Elixinol Global recognises the need to move quickly to leverage the opportunity around the business.
“This funding ensures we can seize the market opportunities in front of us, and in doing so, propel the business toward its next phase of growth.”
Elixinol will apply the funds towards increasing the capacity of its hemp-derived CBD (cannabidiol) production facility in the US to prepare for increasing levels of demand.
The company will also ramp up its sales force and marketing efforts in the US and Europe.
The new funding will also provide Elixinol with additional working capital to support its growth, pursue strategic investment opportunities and construct its Australian medicinal cannabis facility, upon receipt of a medicinal cannabis license from the Office of Drug Control.
Benhaim added: “We are grateful for the support from existing and new investors who participated in this capital raising in recognition of our world-class brand that continues to drive revenue growth and profitability for Elixinol Global.”