Hemp play and ASX newbie Elixinol reports $16.5m revenue, $1.9m loss
Health & Biotech
Health & Biotech
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Cannabis play Elixinol Global — which enjoyed a strong ASX debut last month — has offered a wide array of numbers for its full-year results.
Although the company is made up of a profitable US business, a local hemp producer, and a non-revenue generating medical cannabis arm, the group only combined on December 27.
Elixinol (ASX:EXL) rocketed 75 per cent on its January 8 debut, hitting $1.75 after raising $20 million at $1 per share. The stock later cooled to around $1.30 and was trading on Wednesday afternoon at $1.42.
Elixinol’s ASX announcement today says it made “revenue of $16.5 million, up 62 per cent vs prior year and above prospectus forecast”.
That included $13.2 million from the US business and $3.2 million from Hemp foods Australia.
The group lost $1.9 million over the period.
The annual report lists only $2000 interest revenue for the final few days of 2017 covered by statutory accounts.
A $2.7 million loss for the parent company prior to Elixinol’s initial public offering covers the four months to December. Most of those costs were related to the IPO.
“One of the challenges is the way our accounts have come together,” said chief financial officer Ron Dufficy.
“Our group was formed through an equity settled business combination on December 27, which means no cash was exchanged.
“It means that the statutory accounts only includes four days of trading activity.”
The US business, which sells cannabis and hemp products in Colorado, made $13.3 million in revenue and a profit of $931,000.
The Australian hemp business made $3.2 million but turned a $953,000 loss.
The new medical cannabis business and new global parent, which took care of the listing costs, made no money and posted losses of $392,000 and $1.5 million respectively.
Elixinol had about $19 million cash at the end of December.
“2018 will be the first full year that hemp foods are legal and consumers now expect to see hemp food products in mainstream food channels,” chief Paul Benhaim said.
“With a healthy start to the year, we anticipate a successful harvest of our Australia hemp seed harvest within weeks. We look forward to continued revenue growth in existing as well as new products and brands.”
Elixinol shares dropped 6 per cent to $1.41 after trading on the ASX started on Wednesday morning.