The Elixinol Global Ltd (ASX: EXL) share price has been amongst the best performers on the local market on Thursday.
At the time of writing the share of the manufacturer and global distributor of industrial hemp-based dietary supplement and skincare products are up 5% to $3.86. At one stage they were up as much as 7.5% to $3.95.
Why is the Elixinol Global share price charging higher today?
This morning Elixinol Global announced that its Dutch-based wholly-owned subsidiary, Elixinol BV, has signed an exclusive distribution agreement with MedVec International for pharmacy and para pharmacy channels in Germany.
According to the release, under the terms of the agreement, MedVec will sell Elixinol-branded products and white label products through its existing sales network in the pharmacy and para pharmacy sector for an initial graduated period and provides for an extension for a further three years.
The release explains that the exclusivity of the distribution agreement is based on achievement of minimum annual sales targets. If the sales targets are not met, the distribution agreement will become co-exclusive. In addition to this, MedVec will be appointed co-exclusive for pharmacy and para-pharmacy channels in Austria and Switzerland.
The company's chief executive officer, Paul Benhaim, appeared to be very pleased with the agreement and the significant opportunity the company has in the European hemp and cannabis market.
He said: "The distribution agreement with MedVec allows Elixinol to significantly expand its presence in Germany, the largest pharmacy market in Europe, as well as Austria and Switzerland."
MedVec International's founder, Knut Butzinger, also spoke positively on the agreement.
Mr Butzinger said: "We are excited to partner with Elixinol for the exclusive distribution of Elixinol branded and white label products and leverage our valuable pharmacy distribution channels in Europe. We believe our experienced sales team and market reach to over 15,000 pharmacies in Germany will deliver strong market results for Elixinol."
Elsewhere in the industry, the shares of Althea Group Holdings Ltd (ASX: AGH) and Auscann Group Holdings Ltd (ASX: AC8) have stormed higher this morning despite there being no news out of either cannabis company.
