Elixinol Global Limited (Elixinol Global) (ASX:EXL; OTCQX:ELLXF) is pleased to announce that its wholly-owned subsidiary, Elixinol LLC (Elixinol), has entered into a manufacturing and supply agreement (Agreement) with Altmed Pets, LLC, trading as Pet Releaf (Pet Releaf).
Pet Releaf is the pioneer and market leading brand for hemp-derived CBD oils, topicals and treats for pets. Pet Releaf products are sold in over 4,000 independent pet stores across USA and globally and also sold online. Elixinol has exclusively produced and supplied CBD extract sourced from USDA Organic certified hemp strains grown specifically for Pet Releaf since inception in mid-2014. In April 2019, Elixinol acquired a 25% equity interest in Pet Releaf.
Key components of the Agreement are:
- an initial 18 month term (term) which can be renewed annually for multiple years;
- Pet Releaf to purchase a minimum US$18.0 million (approximately A$26,802,000) worth of products over the term; and
- Pet Releaf to pay a deposit of US$1.8 million (approximately A$2,680,000) (10% of the minimum purchase amount) by way of three equal payments during the term of the
"This exclusive agreement with Pet Releaf further strengthens our relationship and ensures Pet Releaf's products will have scalability and ongoing quality of supply."
– Elixinol Global Chief Executive Officer, Mr Stratos Karouso
Karouso continued to say that "the agreement is consistent with Elixinol's growth strategy, increasing distribution of our branded products through partnerships with trusted and highly regarded brands."
Elixinol Global Chief Technology Officer, Mr Gabriel Ettenson, said: "This agreement reflects Elixinol's commitment to continue to build on the excellent relationship that both companies have enjoyed over many years and leverage seed to sale supply chain efficiencies with extensive scalability, in-house scientific expertise and proprietary processing technologies."
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