, a newly created company, said that it would continue to move forward with its initial public offering on the Australian Stock Exchange (ASX), aiding to provide investors with access to the burgeoning demand for cannabis-infused products, despite worries around the globe.
As part of the offering, Colorado-based Elixinol is merging with Hemp Foods Australia and Elixinol Australia to form Elixinol Global. The companies did not say how much existing shareholders and investors would own of the newly created company, but noted the benefits of the combined company, calling it a “single-source access.”
“With global exports of Australian medical marijuana now approved, the world will
soon have single-source access to best in class medical marijuana and hemp
products from Elixinol, one of the world’s most trusted brands,” said Paul Benhaim,
CEO of Elixinol Global, in a prepared statement, announcing the transaction.
Elixinol Global’s CFO, Ron Dufficy, noted Benhaim’s previous achievements (Benhaim founded Elixinol, Hemp Foods, and Elixinol Australia) as part of a way to create value. “It is time to offer investors an opportunity to take advantage of the collective footprint in this revolutionary emerging global market while capitalizing on potential efficiencies,” Ron added.
The separate entities will still retain their core competencies, just under a single roof. For Australian-based Hemp Foods, that means focusing on making and selling “quality hemp food products and skin care.” Colorado-based Elixinol will still continue to sell “hemp-based
cannabidiol (CBD) dietary supplements and topical products from US and European
hemp,” whereas Elixinol Pty will “provide the globe access to medical marijuana exports from
The legal cannabis-infused products industry is expected to grow by more than three-fold over the next four years, topping $20 billion by 2021, according to data compiled by BDS Analytics
. Separately, Brightfield Group
, a cannabis investment research firm, puts the international market for cannabis-related products at an expected $31.4 billion by 2021, up from $7.7 billion today.
Whether it’s $20 billion or more than $31 billion, it’s clear the market is expected to grow, despite the proclamations U.S. Attorney General Jeff Sessions
has made, as he attempts to curtail the legal cannabis market in the U.S. Benhaim believes that the newly-formed Elixinol will be important to health-conscious consumers looking for their goods and products.
“We’ve worked very hard to make Elixinol the most trusted CBD brand in the world,” Benhaim said. “Elixinol Global is only the beginning of expanded opportunities for investors, strategic partners, and our global customers.”
Shares of the newly formed company are expected to start trading on the ASX on Jan. 8. under the ticker “EXL.”