The Elixinol Global Ltd (ASX: EXL) share price has started the week on a positive note following the release of an announcement this morning.
At the time of writing the diversified cannabis company's shares are up a touch over 1% to $4.00.
What did Elixinol Global announce?
This morning Elixinol Global announced that it has entered into a strategic partnership with RFITD Holdings, an affiliate of RFI, through a newly incorporated Colorado based entity Infusion Strategies.
According to the release, the new Infusion Strategies business will increase Elixinol Global's exposure to the CBD-infused dietary supplement, nutraceutical, food and beverage industries via distribution to RFI's customers. Elixinol Global will own 60% of the business and RFI will own the remaining 40%.
RFI has 30 years of experience partnering with companies to provide a vertically integrated network of high quality, sustainable natural ingredients to ensure consistent quality and availability.
Management believes that Infusion Strategies combines each partner's respective industry positions, proven management expertise, distribution networks, and operating capabilities to better serve the global market for hemp derived CBD nutraceuticals and functional foods.
It will be managed by RFI with a focus on strengthening the organic supply chain for hemp derived CBD, obtaining quality genetics, implementing leading processing and extraction methods and advancing innovation and product development.
RFI will also provide all non-CBD ingredients and the manufacturing expertise needed to custom blend formulations for tinctures, CBD-infused powders, capsules and other products.
Whereas Elixinol Global will provide hemp expertise, supply chain stability, highest-quality full-spectrum and THC-free Hemp CBD extracts.
Elixinol Global's chief executive officer, Paul Benhaim, was pleased with the partnership and expects the company to benefit from it.
He said: "We are pleased to have entered into a strategic partnership with RFI. Jeff Wuagneux founded RFI in 1989 with a vision to establish a vertically integrated, global source of natural specialty ingredients and formulas for the food, functional food and dietary supplement industries. Jeff and his team are now recognised as a diversified and quality driven developer, manufacturer and marketer of a wide range of natural products and we are pleased that Elixinol will be benefiting from their extensive experience and reputation."
Mr Wuagneux echoed this sentiment, advising that "RFI is excited to be partnering with Elixinol to develop and offer the highest quality sustainable ingredients, custom blends and turnkey products."
Elsewhere in the cannabis industry today, the Auscann Group Holdings Ltd (ASX: AC8) share price is trading flat and the Cann Group Ltd (ASX: CAN) share price has edged higher.
