SYDNEY, AUSTRALIA: Elixinol Wellness Limited (ASX: EXL), a global leader in hemp and plant-based products, has announced the sale of its minority interest in Altmed Pets, LLC (Pet Releaf), a US-based pet wellness company, for approximately A$2.3 million.
The deal, which is subject to financing, will allow Elixinol Wellness to focus on its core business segments of human nutrition, human wellness, pet wellness and superfood ingredients, and pursue organic and inorganic growth opportunities.
Elixinol Wellness operates in Australia, the Americas, the United Kingdom, Japan, Brazil, Mexico and South Africa, offering a range of hemp and other plant-derived food, skincare, and nutraceutical products under various brands.
The transaction is expected to close by 30 April 2024, subject to financing. If the financing is not secured by then, either party may terminate the agreement and the downpayment of US$100,000 will be refunded.
Mr. Ron Dufficy, Elixinol Wellness’ Group CEO and Managing Director said: “Our minority shareholding interest in Altmed Pets, LLC is a non-core investment and the opportunity to monetise that investment is attractive given the EXL Group does not sell our current product range via Altmed Pets, LLC and, being a minority interest, EXL Group had no control over the activities of Altmed Pets, LLC.
The disposal of our non-core minority interest will generate additional cash flow for the EXL Group as we focus on the expansion of our current product range with the purchase of Ananda Foods.”