Elixinol Soars After Securing German Distribution Deal

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Elixinol Global saw its share price increase by more than 7% today after tying up a major supply deal with German distributor MedVec.

The firm has been making significant inroads into Europe this year and it will now see its products distributed to 15,000 pharmacies in Germany. MedVec has an experienced, 30-strong sales team and it also serves the Austrian and Swiss markets, giving Elixinol a much greater presence on the continent.

It has been appointed as Elixinol’s exclusive distributor in those markets for an initial guaranteed period, with the provision for a three-year extension if successful. The exclusivity of the deal is based on MedVec meeting sales targets.

It is confident it can achieve those goals, but if it fails then Elixinol will appoint a second distributor on a co-exclusive basis. The agreement covers Elixinol’s branded products and white label offerings.

“The distribution agreement with MedVec allows Elixinol to significantly expand its presence in Germany, the largest pharmacy market in Europe, as well as Austria and Switzerland,” said Elixinol chief executive Paul Benhaim.

Elixinol began producing hemp products in Australia back in 1999 and it now has two main divisions: Elixinol Australia and Denver-based Elixinol USA. It also has a wholly-owned Dutch subsidiary called Elixinol BV and the deal with MedVec has gone through that business.

It is keen to boost its presence in Europe, which is tipped to become the world’s largest cannabis market, and in February it announced a major expansion of its operations on the continent.

Elixinol opened offices in the Netherlands, Spain, and the UK. A mid-2018 capital raise to support global expansion has funded both the European expansion and further investment in Japan. It employed 12 new full-time staff in Europe to boosts its sales and marketing capacity there, and the decision is starting to bear fruit.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Martin Green
Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live.

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