- Elixinol LLC, subsidiary of Elixinol Global, has entered an 18-month manufacturing and supply agreement with U.S. company Pet Releaf
- Pet Releaf delivers hemp-derived CBD oils to cats and dogs
- The agreement can be extended if both parties agree
This morning Elixinol Global's subsidiary, Elixinol LLC, had announced it has entered into a manufacturing and supply agreement with Pet Releaf in the U.S.
Pet Releaf is a pioneer and market leading brand for hemp-derived cannabidiol (CBD) oils, topicals and treats for pets. Its products are sold in over 4000 independent pet stores across the USA and globally.
Its hemp products for dogs can combat severe illnesses, provide daily supplements and help skin conditions, while its hemp products for cats help combat illnesses.
The hemp that it uses is grown specifically for pets and is selected because of the beneficial cannabinoid profile for dogs and cats.
Elixinol has exclusively produced and supplied CBD extract sourced from USDA Organic certified hemp strains grown specifically for Pet Releaf uses since its inception in 2014.
While it specialises in selling hemp-derived CBD dietary supplements, hemp food and wellness products, it also holds an active manufacturing licence for medicinal hemp products.
Elixinol also operates Hemp Foods Australia, a leading hemp food wholesaler, manufacturer, retailer and exporter of bulk and branded raw materials.
It also operates Nunyara Pharma, a company set up in 2014 to participate in the emerging Australian medicinal hemp market.
In April 2019, Elixinol obtained a 25 per cent equity interest in Pet Releaf.
The agreement announced today is for an initial 18-month term with the option to renew it annually if both parties agree.
It also outlines that Pet Releaf must purchase a minimum US$18 million worth of products over the initial term and it must pay a deposit of US$1.8 million by three equal payments during the 18-month term.
"This exclusive agreement with Pet Releaf further strengthens our relationship and ensures Pet Releaf's products will have scalability and ongoing quality of supply," Elixinol Chief Executive Officer Stratos Karousos said.
"This agreement is consistent with our growth strategy, increasing distribution of our branded products through partnerships with highly regarded brands."
According to Elixiol's chief technology officer Gabriel Ettenson, "The exclusive agreement between the two companies is expected to leverage seed to sale supply chain efficiencies, facilitate 'extensive scalability', as well as providing in-house scientific expertise and proprietary processing technologies."
Shares in Elixinol are slightly down, trading for $2.88 in a market cap of $399.8 million.