Elixinol Global continues to make money at a rate of knots but today investors finally said nope, that isn’t enough for us anymore.

Quarterly revenue rose 14 per cent to $11.9 million while full-year revenue rose to $37.2m — an annual growth rate of 121 per cent.

They are still burning cash though — $2.6m in the December quarter — and shareholders sold off, sending the share price down almost 8 per cent to $3.13.

At that price the company’s stock is still up more than 100 per cent since August.

Elixinol’s international arms sell a range of products derived from hemp, including skin care products and hemp-based food items.

It’s also chasing the relevant licences in Australia to gain entry to the nascent market for medicinal cannabis.

The American dream

Australia legalised hemp in November 2017 but bugs in the industry, such as farmers needing to learn how to best grow the plant, means most of Elixinol’s sales come from the established US business still.

The company is particularly excited about the US Farm Bill, which was signed into law by the Trump administration in December.

One effect of the Farm Bill is that hemp-derived cannabidiol (CBD) is no longer considered a controlled substance, which frees up sellers of hemp products to engage in more traditional commercial activities such as advertising.

“As an example, Elixinol secured advertising space in New York City’s iconic Times Square for the recent New Year’s Eve celebrations,” the company said.

It cited industry research which forecasts the size of the US hemp industry to increase to $22 billion by 2022, up from a forecast of $2 billion pre-Farm Bill.

And as evidence of its US focus, Elixinol announced earlier this month that chief financial officer Ron Duffey will be relocating to the company’s US headquarters in Colorado.

Armed with $40 million in cash following its September 2018 capital raising, Elixinol now wants to beef up its US distribution channels and expand its product range.

Elixinol was the first Aussie pot stock to turn a profit, thanks to that hemp focus.

It has renamed its Australian medicinal cannabis company to Nunyara Pharma Pty Ltd, to differentiate it from the more profitable hemp division.

Medicinal cannabis still growing at a snails pace

Business is moving a little slower for fellow listed pot stock Auscann (ASX:AC8), as it pivots towards the manufacture of pharmaceutical cannabis products.

The company has just spent $5m on a new R&D facility in Perth, and has partnered with US-based PCI Pharma to produce Auscann’s proprietary hard-shell cannabis capsules. (PCI Pharma’s Australian subsidiary is licensed by the Therapeutic Goods Administration).

Auscann’s plan is to produce the capsules “for treatment of chronic pain” and submit them for clinical trials later this year.

The company has plenty of cash — around $40 million — but no income, and its quarterly report this morning showed operating outflows of $1.102m.

A short time ago, Auscann shares were up by almost 1 per cent at 65 cents — well off their 12-month high of $1.77.