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Australian hemp wholesaler Elixinol Global has announced a $6.3 million deal to acquire 25 per cent of US Pet CBD oil company Pet Releaf.
Elixinol is to pay Releaf US$4.4 million in cash and US$1.9 million in Elixinol scrip.
Pet Releaf is a market leader for dog and cat-based CBD oils and creams. Pet Releaf celebrated an annual 2018 income of $8.1 million, a $5.9 million increase from 2017
Releaf also recently achieved a 16th consecutive revenue growth quarter and the 16th consecutive best quarter in company history.
The Colorado-based company currently sells products in over 4,000 pet stores across America and online. Cannabidiol, or CBD, is gaining recognition in the wellness supplement market as a treatment for chronic pain, seizures, and instances of cancer.
The deal comes from a four-year relationship between the companies, as Elixinol has been producing and supplying CBD extracts for Pet Releaf products.
Releaf plans to use the majority of the proceeds for working capital and company growth, including a new 25,000 square foot production facility.
Elixinol President and Pet Releaf Co-Founder Stephen Smith say the partnership is of the two-best hemp-based companies in the market.
“Through this new capital investment, we are strongly positioned to forge ahead as industry innovators and to continue with our mission to change what healthy means for pets,” he said.
Elixinol was founded in Australia under the name Hemp Foods in 1999 and now has operations based outside of Colorado.
Pet Releaf has future plans to expand CBD used to horses, small mammals, and exotic mammals.
