Understanding the Huge Strength in Elixinol Global Ltd (OTCMKTS:ELLXF)

Understanding the Huge Strength in Elixinol Global Ltd (OTCMKTS:ELLXF)


Perhaps, the most dramatic upward trend right now in the CBD space is evidenced on the chart of Elixinol Global Ltd (OTCMKTS:ELLXF). The stock has been positively on fire, with a sharp ratio nearing infinity since October (while most stocks have roughly struggled). To put some meat on the bone, the company just announced that its products will now be available in New Zealand.

According to the release, “Elixinol is a wholly owned subsidiary of Australian-based Elixinol Global Limited (ASX: EXL; OTCQX: ELLXF). The announcement comes on the heels of the December 2018 passage of New Zealand’s Misuse of Drugs (Medicinal Cannabis) Amendment Act which classifies CBD, with low levels of THC as prescription medicine and removes CBD as a Class B1 controlled drug. The Act recognizes CBD as a substance with therapeutic value with little or no psychoactive properties.”

Elixinol Global Ltd (OTCMKTS:ELLXF) trumpets itself as a company that engages in the industrial hemp and medicinal cannabis business in Australia.

It manufactures and distributes industrial hemp-based dietary supplements and foods, and skincare products; and medicinal cannabis. The company is based in Sydney, Australia.

Moreover, Elixinol Global Ltd. engages in the industrial hemp and medical cannabis business in Australia. It manufactures and distributes industrial hemp-based dietary supplements, foods, and skincare products in the USA.

According to the company materials, “Colorado-based Elixinol, co-founded by Paul Benhaim, hemp entrepreneur since 1991, is widely regarded as one of the most influential CBD brands in the world. With a proven track record of growing and extracting premium-quality hemp, Elixinol is one of the few CBD hemp extract brands with complete seed-to-sale control over its products. Elixinol also conducts rigorous third-party laboratory testing and quality control. Elixinol distributes hemp-derived CBD products in 40 countries including North and South America, throughout Europe, Asia, and the Pacific Region under its own label and bulk CBD and wholesale CBD. Elixinol’s parent company EXL (elixinolglobal.com) is publicly traded on the Australian Securities Exchange and on the U.S. OTC (ASX:EXL, OTCQX:ELLXF).”

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As noted above, ELLXF just announced that its products will now be available in New Zealand. In all, the chart shows 49% during the past month in terms of shareholder gains in the listing.

What’s more, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed just under 230% beyond what we have been seeing over the larger time frame. It pays to take note of this fact with the stock trading on a float that is tight at just 21.9M shares.

Paul Benhaim, CEO of parent company EXL, commented, “Over the past few weeks, we have seen a groundswell of change in legislation related to cannabidiol.  The US Farm Bill was passed in December, and through that process, CBD was descheduled from the Controlled Substances Act.  Now, this change in New Zealand enables Elixinol to ship CBD to patients who have been requesting it for years.  We are delighted to be one of the first companies to supply New Zealand patients with the range our US customers have been benefiting from for years.”

Now commanding a market cap of $300.91M, ELLXF has a significant war chest ($14.2M) of cash on the books, which is balanced by about $4.3M in total current liabilities. One should also note that debt has been growing over recent quarters. ELLXF is pulling in trailing 12-month revenues of $14.9M. However, the company is seeing some stagnation on the top-line on a sequential quarterly basis, with revenues flat as of its latest reporting period. We will update the story again as soon as developments transpire. Sign-up for continuing coverage on shares of $ELLXF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $ELLXF, either long or short, and we have not been compensated for this article.

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