After a failed sale and subsequent re-evaluation of operations, Elixinol Global (ASX:EXL) has decided to keep Hemp Foods Australia in its stable. Reports Hemp Gazette.
Here’s their report
Back in February this year, Elixinol announced it was to sell off its Australian hemp foods arm to a subsidiary of China’s Shanghai Shunho New Materials Technology Co., Ltd in order to focus on the hemp-derived CBD market.
Then in May, the company stated the sale wouldn’t be proceeding, with the buyer citing COVID-19 impacts as the reason for pulling out. Elixinol said it would continue to operate Hemp Foods Australia pending an evaluation of operations and opportunities.
The company has been pretty quiet since that time, but it was announced early this week the evaluation process is complete, with the Board no longer seeking to exit the business.
“Under strong management, HFA has delivered improving performance and we have put in place measures to further optimise the HFA business,” said Elixinol Global Group CEO Oliver Horn. “As a result of the stronger performance, we are now working towards harnessing this positive momentum.”