Global cannabis company Elixinol Wellness (ASX: EXL; OTCQB: ELLXF) recently announced that it was leaving Britain’s medical cannabis market, but it won’t leave medical cannabis users without access to their medications.
On December 21st, Elixinol Wellness announced that it has signed a Trademark and Know-How Licensing Agreement with British Cannabis — Britain’s largest independently owned cannabis producer, manufacturer and distributor. British Cannabis is registered as “CBD Health Foods Ltd.”
The deal between the two companies will see British Cannabis distributing Elixinol Wellness’ products. It lasts for the next three years and will continue to build the Elixinol Wellness brand even after the company has ceased operations in the UK.
Elixinol Wellness chose to stop trading in the British and European medical cannabis markets because of the uncertain regulations that stifle the industry and make it difficult for companies to stay afloat. In their announcement post, Elixinol Wellness said that distributing products through British Cannabis will give them “significant cost savings” while allowing them to keep supplying medical cannabis to those who need it.
Elixinol Wellness’ CEO Oliver Horn also mentioned that British Cannabis will help manufacture Elixinol products locally in the UK, making the supply chain “more efficient.”
British Cannabis’ manufacturing capability also allows us to manufacture Elixnol products in the UK and thus create a more efficient supply chain solution.
The deal won’t change how Elixinol Wellness’ patients access their medications, as Elixinol will continue to produce and distribute their products as normal (albeit through British Cannabis).