Elixinol Wellness

RON DUFFICY

GLOBAL CEO

(ASX:EXL)

◾ Company Name: Elixinol Wellness ◾ Company ASX code: EXL ◾ Key areas: Hemp derived nutraceutical and natural food products ◾ Key Personnel: Ron Dufficy, Global CEO | Helen Wiseman, Independent Non-Exec Chair ◾ Locations: NSW and Colorado, United States ◾ Market Cap as of 15/09/22: $11.06M ◾52 Week share price as of 15 September: $0.019 - $0.110 ◾ Company Website: elixinolwellness.com

COMPANY PROFILE

Elixinol Wellness is a global leader in the hemp industry - innovating, marketing and selling hemp-derived and other plantbased nutraceuticals, cosmetics and food products, capitalising on hemp’s “new” status among consumers as something of a miracle crop, with many potential uses.

While being useful in the production of things from fuel to fabrics, furniture to medicine, and paper to bioplastics, the plant itself is capable of removing more CO2 from the air than trees and is pest, weed and drought resistant.

Elixinol’s focus on hemp means that the company is well positioned in the global consumer wellness space towards natural and plant-based food and nutraceuticals, while its simplified business model targets established markets in the US and Australia – two markets representing Elixinol’s stronger competitive positions, whilst maintaining a watching brief in the EU and UK depending on regulatory progress.

The continued rise in dietary changes around the country has seen many Australians turning to a more plantbased diet, with vegans, vegetarians and “flexitarians” driving a decreased demand for meat and building a market for other sources of nutrition.

Elixinol’s Hemp Foods Australia (HFA) business is a leading hemp food wholesaler, retailer, manufacturer and exporter of bulk and branded raw materials and finished products in the southern hemisphere, helping to bridge that market gap.

HFA has, to date, launched a wide range of products that include hemp seeds, hemp protein shakes, hemp oil and the highly regarded Sativa Skincare range.

Located near Byron Bay, HFA has been steadily increasing its importance and place within the group, accounting for 44% of total revenues at near break-even levels.

In the US, Elixinol sells high quality hemp derived CBD nutraceutical and skincare products. Elixinol’s comprehensive range includes CBD oils and capsules, liposomes, gummies, topicals and a pet range.

From its base in Colorado, Elixinol USA distributes these hemp-derived CBD and other natural wellness products to 40 countries globally including North and South America, throughout Europe, Asia, and the Pacific region.

Research by Brightfield Group points to a market increase of CBD based products in the US to reach $12 billion by 2026, driven by accelerated growth of ingestibles, as well as larger mainstream distribution channels, like groceries.

The regulatory environment in the US is developing positively with new Congressional bills receiving bi-partisan support, and California legalising CBD as a dietary supplement, and prices also appear to be stabilising indicating that the oversupply pressure is easing.

In the United Kingdom, South Africa, Japan, Brazil, Mexico and Malaysia, Elixinol branded products are available to consumers via exclusive distribution and/ or Trademark and Know-How Licensing Agreements.

Elixinol recently undertook a company wide strategic review which has identified opportunities to reduce operating costs by approximately $3.2M on an annualised basis, further strengthening the company’s fundamentals as it drives entry into new product categories.

Elixinol is currently headed by Global CEO, Ron Dufficy, who was previously the company’s CFO. His extensive senior leadership and strategy experience includes senior international finance roles leading large international teams, including CFO of Aristocrat America.

Helen Wiseman is the incumbent Independent Chair and non-executive director, bringing extensive international experience in food, pharmaceutical, natural healthcare, professional services, energy and natural resources and manufacturing industries.

As a former partner of KPMG and previously named as one of the 2014 Australian Financial Review and Westpac 100 Women of Influence, she brings diversity and seasoned governance skills to the board.

KEY INVESTMENT HIGHLIGHTS

DECEMBER 21, 2021: Signed a 3-year exclusive Trademark and Know-How Licensing Agreement with BRITISH CANNABISTM, to manufacture, market and sell Elixinol CBD products across the UK. MARCH 28, 2022: A strategic review identifies opportunities expected to reduce annual operating costs by approx. $3.2M. JULY 29, 2022: Strategic review completed and Ron Dufficy confirmed as Global CEO; Hemp Foods Australia secures national distribution deal with Coles.