Acquisition positions Elixinol as a leading pan-European CBD business and accelerates path to profitability
Management to discuss transaction and provide business update at the Cannabis Investing Forum on March 18
WESTMINSTER, Colo., March 17, 2021 (GLOBE NEWSWIRE) — Elixinol Global Limited (Elixinol or the Company) (ASX:EXL; OTCQB:ELLXF) is pleased to announce that it has entered into a binding agreement for its subsidiary (Elixinol B.V.) to acquire all of the issued share capital of CannaCare Health GmbH (CannaCare), a company incorporated in Germany (Proposed Transaction). The vendors of CannaCare are Mr Frank Otto, Ms Annette-Rosa Oplesch and an entity associated with Mr Michael Oplesch (Vendors). The Proposed Transaction is subject to the satisfaction of certain conditions precedent, the details of which are set out below.
- Elixinol signs binding agreement to acquire CannaCare Health GmbH (CannaCare), owner of CANOBO, one of Germany’s leading CBD brands with #1 share in Germany’s drugstore channel1
- Upfront consideration of €9.0m consisting of €3.0m in cash plus €6.0m in Elixinol shares
- Upon attainment of FY2021 revenues of €12.9m and 20% EBITDA, the maximum earn-out of €15.0m is payable in Elixinol shares making a total potential consideration of €24.0m
- Germany is Europe’s fastest growing CBD market, forecast to grow at +47% CAGR from 2020 to 2025, to a total market size of US$0.6bn2
- CANOBO has dominant retail distribution with over…