The Motley Fool

Cannabis company Elixinol Global announces supply agreement with Pet Releaf

The Elixinol Global Ltd (ASX: EXL) share price could push higher today following the release of an announcement out of the medicinal cannabis company this morning.

What did Elixinol Global announce?

This morning Elixinol Global announced that its wholly-owned subsidiary, Elixinol LLC, has entered into a manufacturing and supply agreement with Pet Releaf in the United States.

According to the release, Pet Releaf is the pioneer and market leading brand for hemp-derived cannabidiol (CBD) oils, topicals, and treats for pets.

Its products are currently sold online and in over 4,000 independent pet stores across the USA and globally.

The release explains that Elixinol has exclusively produced and supplied CBD extract sourced from USDA Organic certified hemp strains grown specifically for Pet Releaf since its inception in 2014. In April 2019, Elixinol acquired a 25% equity interest in Pet Releaf.

Today’s agreement is for an initial 18-month term which can be renewed annually for multiple years. It will see Pet Releaf purchase a minimum US$18 million (approximately A$26.8 million) worth of products over the term and pay a deposit of US$1.8 million (approximately A$2.7 million) by way of three equal payments during the term of the agreement.

Elixinol Global’s chief executive officer, Stratos Karousos, was pleased with the agreement.

He said: “This exclusive agreement with Pet Releaf further strengthens our relationship and ensures Pet Releaf’s products will have scalability and ongoing quality of supply. The agreement is consistent with Elixinol’s growth strategy, increasing distribution of our branded products through partnerships with trusted and highly regarded brands.”

This sentiment was echoed by the company’s chief technology officer, Gabriel Ettenson.

He said: “This agreement reflects Elixinol’s commitment to continue to build on the excellent relationship that both companies have enjoyed over many years and leverage seed to sale supply chain efficiencies with extensive scalability, in-house scientific expertise and proprietary processing technologies.”

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.