A sustained push into the USA combined with the launch of a new range of hemp-based products saw rising cannabis company Elixinol (ASX: EXL) dominate in the third quarter of FY18.
The company, whose financial year follows the calendar year, notched 159 per cent growth in revenue year-on-year for the period to hit $10.4 million.
These results follow Elixinol coming in at number 11 in Business News Australia's Top 20 Cannabis Companies list.
During the period, the company made several serious international plays around the globe.
The company listed on the OTCQX exchange to become more accessible to US investors a savvy move considering the bulk of the company's revenue stream comes from the region.
Demand for Elixinol's hemp-derived cannabidiol dietary supplements and skincare products continues to grow strongly in the USA.
The first harvest of high-CBD premium hemp was completed during Q3 in Colorado as part of the company's joint venture with Keresy Ag.
Over in Japan, Elixinol increased its ownership in Elixinol Japan to 50.5 per cent, funding working capital to scale the business for anticipated growth for hemp-derived CBD, foods and skincare in the Japanese market. The transaction is expected to be complete in the last quarter of this calendar year.
The company's Hemp Foods Australia business, which produces hemp seed oil and hemp protein products, also reported strong revenue growth.
At the end of September 2018, the company launched its first range of finished products under the brand Essential Hemp. The range of health bars is now available in three flavours in health food stores nationwide and online.
In terms of Elixinol's ambitions to begin cultivating cannabis in Australia things seem to be moving along. The company's application for a manufacturing and cultivation licence is still under review by the Office of Drug Control, but the company was unable to give any indication of when it might be approved.
Of note during the quarter was the $40 million capital raise the company undertook to support its continued global push. Proceeds for the placement were received on 3 October 2018 and the placement shares issued 4 October.
Shares in Elixinol are up 4.73 per cent to $1.66 per share at 1.52pm AEST.
Business News Australia
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