Elixinol Global has acquired the global IP rights to Bionova's microencapsulation technology.
Elixinol Global Limited (ASX:EXL) announced today that it has secured the intellectual property rights to a microencapsulated technology developed by Bionova.
The license gives the company the right to exploit the microencapsulation system globally, and as part of the agreement Bionova will become the exclusive manufacturer and supplier of Elixinol products—that are developed using its technology—with the European Union (EU).
The unique microencapsulation technology developed by Bionova has a wide variety of applications—such as foods, beverages and nutraceutical product formulations—and adds to Elixinol's portfolio of medicinal delivery systems, which also includes the highly valuable Permetrex license.
"We believe our CBD products will be enhanced by microencapsulation technology, providing multiple benefits to a diverse range of uses, particularly in the food, beverage and nutraceutical sectors."
– Elixinol Global CEO, Stratos Karousos
The CEO of Elixinol Global, Stratos Karousos, was bullish about the company's acquisition of Bionova's microencapsulation technology.
"Elixinol's strategy is focused on developing new technologies, formulations and delivery systems to maximise bioavailability of our hemp derived CBD products," Karousos said.
Aside from its wide-ranging versatility, Bionova's microencapsulation technology will possesses numerous other qualities that will strengthen Elixinol's product offering, including:
- Increased absorption into the human body;
- Masking of unpleasant flavors or odors in finished products;
- Increased efficacy of active ingredients within a product;
- Added protection against environmental factors inside the human body once ingested;
- Increased uniformity of ingredients within a product; and
- Better storage preservation of the encapsulated active ingredients.
According to the inventor of Bionova's microencapsulation technology, Dr Jamie Fabregas Casal, it's "exciting to have Elixinol leverage the technology on a global scale".
"By extending the useful life of cannabinoids and delivering them more efficiently in the human body, we can improve the health and wellbeing of many people," Casal said.
As part of the agreement, Elixinol Global will also contribute an annual fixed amount of €25,000 for each EU country in which the company exploits Bionova's microencapsulation technology. This amount will increase to €50,000 per year once patent rights are granted in that country.
News of the deal caused stock in Elixinol Global to increase in value by 2.34%, reaching 3.93 by the day's close.
Disclaimer: Past performance is not an indicator of future performance.
Elixinol Global has also announced key changes to its senior executive team, which will see multiple exisiting members of the organization take on broadened roles and responsibilities as part of the company's ongoing growth plans.
The changes are designed to strengthen the company's strategic focus by establishing a global executive office—as well as regional executives—and are to be effective immediately.
The following appointments have been made by Elixinol Global:
• Mr Gabriel Ettenson—the current President of Elixinol US—will become Global Chief Technology Officer;
• Mr Greg Smith—the current Global IT Director of Elixinol US—will become Global Chief Information Officer;
• Mr Leif Harrison—presently the Director of Business Development for Elixinol US—will become CEO for the Americas; and
• Mr Ali Atcha—who is currently Director of Sales and Marketing for Elixinol Europe—will become CEO for the UK and Europe.
The CEO of Elixinol Global, Stratos Karousos, commented positively on the new appointments, stating that the "changes recognise the skills, capabilities and track record of key executives to deliver value to the Company and our shareholders."
"This is an important evolution for Elixinol Global to ensure the Company is well positioned around executive capability today and in the future. Gabriel has spent over 20 years focusing on using technology to promote health and healing."
"I look forward Gabriel being able to build our brands by leveraging the use of technologies from across the globe to ensure that Elixinol Global creates leading cannabis products in all regions through its innovative production capabilities and quality controls. Greg has spent over 30 years focusing on information technology and will build out functional boundaries for the Company globally that will drive excellence and efficiencies through the use of data and other information," Karousos said.
Karousos was also bullish about the company's regional leadership appointments, saying that they will allow Elixinol Global to capitalise on growth in the hemp derived CBD market.
"Leif and Ali are deserving of their appointments to regional leadership roles in the Americas and Europe & UK."
"These appointments have been made to ensure we have the right regional leadership structures in place to optimally position the Company to capitalise on the expected growth of hemp derived CBD products in these important regions," he said.