On April 24, 2019 Elixinol Global Limited, a global company operating in the industrial hemp, dietary supplements and emerging medicinal cannabis sectors, announced it will acquire 25 percent of Altmed Pets LLC (Pet Releaf), through its wholly-owned subsidiary, Colorado-based Elixinol, LLC. As per the agreement, Elixinol will make a financial investment into the high-growth cannabidiol (CBD) pet products market by paying Pet Releaf $4.4 million in cash and $1.9 million in EXL scrip with the majority of proceeds to be used for working capital to facilitate growth.
The investment is an extension of a 4-year-long relationship with Pet Releaf to which Elixinol has been the exclusive supplier of CBD extracts from Pet Releaf’s exclusive strains of hemp since inception and has shared its best in class manufacturing expertise to select Pet Releaf-branded products. The founders of Pet Releaf and Elixinol have shared scientific, farming, production ideas, costs and expertise for many years. Those groundbreaking years have built the cornerstone that ensures this formal agreement will yield significant benefits for both companies as the hemp and CBD category enters a new phase of growth.
Gabriel Ettenson, President of Elixinol, said, “Hemp-derived CBD pet products are a rapidly growing category and one which Elixinol customers have a strong interest in. In addition to having Elixinol as a major distribution partner, Pet Releaf is the most widely distributed hemp and CBD pet product on the market, both online and through over 4,000 retail pet locations globally. This investment enables closer alignment with Pet Releaf and allows us to share in the upside that further growth in sales of the Pet Releaf brand will bring.”
President and Co-Founder of Pet Releaf, Stephen Smith said, “Pet Releaf and Elixinol share the same values in sourcing and end-product superiority. This partnership of two best-in-class companies means Pet Releaf will gain additional working capital to be able to expand our reputation for innovation, increase our scientific and international expertise, while still maintaining our ‘from seed to sale from plant to pet approach.” In 2018, Pet Releaf posted a revenue of $8.1 million, a significant increase on FY2017 revenue of US$2.8 million.