Elixinol Global Sales Rise 111% in Q2 to A$8 Million
Australian hemp company Elixinol Global shared Q2 financial results in a press release issued on July 30th, with sales of A$8.0 million growing 111% from the prior year and by 21% from the prior quarter:
Despite the jump in sales in Q2, the operating loss expanded from A$128K to A$972K during the quarter. The company ended the quarter with over A$14.1 million cash on the balance sheet.
Elixinol sells a variety of premium CBD products in the form of cosmetics, topical's, tinctures, capsules, and pet products. The company's headquarters is located out of Australia but, currently has distribution networks set up in the United States, Europe, South America, and Japan, where just this year Elixinol was accepted as the first CBD company to distribute and market in the country.
Elixinol has also recently joint ventured with Kersey Ag to complete the cultivation of high- yielding CBD industrial hemp in Colorado. Their newly founded company, Northern Colorado High Plains Producers completed its first planting of hemp in April 2018. Elixinol plans to cultivate industrial hemp in Colorado in the hopes of establishing an extraction and manufacturing facility for their product line in the United States.
We continue to hold a small position in the portfolio but are concerned at the massive blow out in operating expenses. The company is yet to acquire the Australian production licenses and although there has been phenomenal revenue growth, the company needs to deliver on its Australian business plan, in order to justify the current valuation.