Cannabis: Elixinol cops $2.2m profit hit on Japanese divestment
Health & Biotech
Health & Biotech
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Cannabis industry player Elixinol Global (ASX:EXL) will take a $2.2m profit hit when it divests its stake in a Japanese investment to focus on Western markets.
The Sydney World Square company revealed overnight its subsidiary EXL International Holdings would hand on the group’s 50.5 per cent stake in Elixinol Japan to fellow investor Takeshi Sakurada.
Sakurada was to serve up $13,500 in cash for the immediate transaction, with a further sum to follow by March 31, 2020.
The second sum will be calculated with a base price of $13,500 and then multiplied by the January 8, 2020 closing price divided by Friday’s closing price of $1.09.
“We have made an important decision to move to a licensing model for Japan and to press ahead with our growth priorities in our key markets,” Elixinol chairman Andrew Duff told the market last night.
“We look forward to focusing our efforts on building our distribution channels in North America and Europe and reinforcing a positive and growth-focused culture within our business.”
Elixinol shares were down 6.5c, or 6.31 per cent, by late morning to 96.5c today after slipping 3c, or 2.8 per cent, yesterday on last week’s close.
More than 24,000 or $25,000 of shares have changed hands this morning in the $60.6m company.
Fellow cannabis company Botanix Pharmaceuticals (ASX:BOT) was another high-volume trader this morning after directors, chief scientific officer Dr Bill Bosch and Rob Towner, exercised some expiring options. Last week the $106.1m company flagged that its US partner Purisys was able to convince the Drug Enforcement Agency to de-schedule synthetic CBD in a one-off exemption to industry norms. More than 3.7 million shares were swapped this morning for $407m-plus, with Botanix beating its ASX-listed cannabis peers on volume and trade value.
Agricultural biotech CropLogic (ASX:CLI) has released its half-year results, valuing its hemp assets at a $5.2m cost. The North American and Australia-based agricultural technology specialist has been trying out its soil management solutions this year in a trial hemp field in Oregon in the US. The New Zealand plant institute spin-out had estimated potential sales from crops at $64m in May, luring shareholders keen for a cut of the profits.