The two biggest shareholders of hemp grower Elixinol Global — one of whom is the chief executive — have seen their shareholdings significantly diluted by a recent $40 million capital raising.

Chief Paul Benhaim’s trading company Raw With Life saw its ownership in Elixinol (ASX:EXL) fall by about 13 per cent after the company issued new stock as part of the September capital raising.

Raw With Life’s stake fell from 76 per cent to 63 per cent.

D&G Health, the US distributor of Elixinol’s cannabidiol (CBD) oil, saw their stake fall from 12.4 per cent to 10.3 per cent.

Elixinol raised the cash from institutional and professional investors in order to prepare for the expected legalisation of hemp-derived CBD in the US and provide cash to launch medical cannabis operations in Australia.

The stock was issued at $1.85 — a 3.3 per cent discoun. Despite a dip in October the stock is now trading above the issue price.

The company has also completed its purchase of 50.5 per cent of a Japanese subsidiary, flagged just before the capital raising.

Elixinol opened on Tuesday at $1.92.

Elixinol shares since listing in January.