The Elixinol Ltd (ASX: EXL) share price is down 4.5% to $4.83 this afternoon despite the industrial hemp and medicinal cannabis business revealing it is to invest US$4.4 million and US$1.9 million in Elixinol scrip in exchange for a 25% interest in Pet Releaf, which sells cannabis-derivative-infused treats for pets.
Apparently Pet Releaf's medical marijuana products for our furry friends are already in 4,000 pet stores across the U.S. with Pet Releaf selling US$8.1 million worth of products over fiscal 2018.
However, the share price may be falling today as investors continue to react to the Elixinol Group yesterday reporting a 31% decline in quarter-on-quarter revenue growth. In total the group posted an operating cash loss of $10 million on revenue of $8 million, with $27.3 million cash on hand.
As such it's not hard to see why the share price is in reverse today.
