MELBOURNE: Elixinol Wellness Ltd. has completed the sale of its United States business to Ananda Health, Inc., the company announced Monday, as it sharpens focus on its Australian health and wellness portfolio.

The transaction, which closed Sept. 4, provides for total consideration of approximately A$465,000, according to an ASX announcement. The deal includes an upfront payment of A$250,000, which was released from escrow and is expected to be received Sept. 7, as well as deferred and contingent proceeds of up to A$215,000. The contingent portion includes a potential regulatory payment and a revenue-based earn-out.

Strategic Rationale

The divestment simplifies Elixinol’s operations and reduces its exposure to the evolving U.S. regulatory environment for hemp-derived products, which were not material to earnings or net assets. The company retains rights to the Elixinol brand and intellectual property outside the U.S..

Ananda Health, a vertically integrated Kentucky-based health and wellness company, acquires the U.S. operations. Alex Nance, president of Ananda Health, said the acquisition “represents a compelling strategic opportunity for two established participants in the U.S. health and wellness market to come together”. The company plans to leverage its manufacturing capabilities and industry experience to support the brand’s next growth phase.

Completion conditions, including due diligence and consents from loan note holders, were satisfied, and transitional arrangements are underway to support an orderly transfer over the next six weeks. The transaction resolves one of three dependencies underpinning the going concern assessment disclosed in Elixinol’s H1 FY26 interim report.

Financial Performance

Elixinol also reported materially improved first-half results, with adjusted EBITDA loss narrowing to approximately A$0.1 million, an improvement of roughly A$2.0 million compared to the prior half. Group revenue from continuing operations rose 5.8% to A$7.2 million, while gross margin expanded 9.8 percentage points to 43.2%.

“The improvement was achieved without the A$0.48 million insurance recovery received in H1 FY25, pointing to a more structural quality of earnings,” the company said in its investor presentation.

Australian brands drove the growth, with Hemp Foods Australia revenue up 14.1% to A$2.87 million, The Healthy Chef up 22.2% to A$2.07 million, and Hemp Ingredients up 16.4% to A$1.33 million.

Capital Position

Subsequent to the period end, the company closed a convertible note offer approved at the May annual general meeting, with subscriptions totaling A$1,055,000. The notes carry a 12% coupon, mature Dec. 31, 2027, and convert to ordinary shares only on holder notice or at maturity, deferring dilution.

Net assets stood at A$6.4 million as of June 30, 2026, with cash and equivalents of A$1.0 million.

Growth Outlook

Elixinol CEO Natalie Butler outlined a three-phase growth strategy: reset (FY25–H1 FY26), proof (H2 FY26), and growth (FY27 and beyond). Key growth drivers include the Priceline pharmacy rollout for The Healthy Chef across approximately 410 stores, Mt Elephant’s expansion into national grocery, and hemp supply contracts with two major retailers [citation:16].

The company views the wellness market shift toward healthy ageing as a significant opportunity, citing a projected global wellness economy of US$9.8 trillion by 2029 [citation:17]. Elixinol’s product pipeline includes nutritional peptides targeting sleep, muscle maintenance, and weight management [citation:18].

About Elixinol Wellness Ltd.

Elixinol Wellness Limited (ASX: EXL) is a sustainable nutrition and wellness company operating in Australia. The company produces, manufactures, and distributes complementary products spanning nutrition, wellness, and superfood ingredients. Its major retail brands include The Healthy Chef, Hemp Foods Australia, and Mt Elephant.