The company hopes this move will allow its brand of CBD products to stay in the UK market, where it is well recognised, while keeping costs down.
Elixinol Wellness Ltd (ASX:EXL, OTCQB:ELLXF) has entered into a three-year exclusive licensing agreement with CBD Health Foods Ltd, trading as British Cannabis, to manufacture, market and sell CBD products across the UK.
The agreement follows the company’s recent decision to cease trading in the UK and EU markets, and move to an indirect route to market by seeking a licensing partner in the UK.
Continued profitability
Elixinol’s decision is driven by continued regulatory uncertainty in these markets and the company’s strategic focus on profitability.
This new agreement between Elixinol Wellness and British Cannabis will keep the Elixinol brand in the UK while saving on UK operational costs.
“British Cannabis’ Canabidol™ is a widely distributed brand in UK pharmacies, demonstrating the company’s credentials and capabilities to build brands in sophisticated retail channels,” Elixinol Wellness Global CEO Oliver Horn said.
“British Cannabis’ manufacturing capability also allows us to manufacture Elixinol products in the UK and thus create a more efficient supply chain solution.
“Through the partnership with British Cannabis, UK consumers will now continue to be able to buy their favourite Elixinol products and we are very excited to see the brand continue following many years of building it.”
“Elixinol’s product portfolio complements our existing product ranges well and allows us to now service all UK sales channels with the widest range of products,” British Cannabis chief executive officer Tom Whettem said.
