ELIXINOL with acquisition forecasted revenue guidance of $16-20m for CY2024

Company name: ELIXINOL WELLNESS LIMITED

Code: EXL.ASX

?The proceeds from the recent capital raise will place Elixinol Wellness in a strong position to execute on its pathway to?EBITDA breakeven expected to be achieved by mid-CY2024. EXL’s Group CEO Mr. Ron Dufficy noted the acquisition is ‘complementary to our existing hemp product range and will bring improved unit economics through increased production yields and asset utilisation and create opportunities for significant cost and revenue synergies’. ? ? Other factual information provided by the company has been summarised below:

• In late CY2023, Elixinol Wellness completed its acquisition of The Sustainable Nutrition Group Limited,?increasing the size and scale of Elixinol Wellness. Management has a track record of quickly integrating businesses and extracting synergies.

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• The acquisition of Ananda Food adds further scale to enhance profitability?for the combined business. This proposed transaction will enable EXL to realise the following benefits:

1. Further strengthen EXL’s leadership position in the Australian hemp market which can be leveraged across the supply chain.
2. Combine highly complementary product ranges to accelerate sales through cross-selling.
3. Significantly improve unit economics by improving yields, asset utilisation and sale of by-products.
4. Create immediate potential cost synergies of $1.0m per annum and near-term opportunities for revenue synergies.

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• Elixinol Wellness has identified a ~$13m revenue opportunity pipeline?being targeted to expand distribution.

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• Elixinol Wellness has forecasted revenue guidance of $16-20m?for CY2024, with EBITDA breakeven from mid-CY2024. Furthermore, the company has identified $1.0m per annum in potential cost synergies, and improved unit economics through increased production yields and asset utilisation.

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• The acquisition Strengthens and broadens?the EXL hemp ingredients portfolio. EXL will become one of the largest suppliers of hemp ingredients in Australia across both branded and private label products. Ananda Food is a prominent hemp producer in Australia, whose operations encompass growing and processing hemp. The company is focused on low-cost production of hemp for bulk and private label customers with a strong focus on quality.

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• Elixinol Wellness is economically positioned?to take advantage of the rapidly growing hemp market with the market size projected to reach $21.71 billion by 2028, growing at a CAGR (Compound annual growth rate) of 25.2% from 2023 (currently valued at USD $7.67b) to 2028 ‘marketdataforecast.com’. In addition, 2022 saw the North American market capture the major share of the global market, along with Asia Pacific accounting for a substantial share.

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• The Rights offer provides a generous incentive structure to participate?as the company is offering 1 FREE LISTED option for every 2 New Shares issued under the offer, with an exercise price of $0.0075 per share (0.75 cents) and expires 36 months from their date of issue. The term and price of the option provides shareholders with the opportunity to potentially unlock future value, as the company executes their acquisition of Ananda Food Pty Ltd and executes on its pathway to?EBITDA breakeven expected to be achieved by mid-CY2024.

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• Group Chief Executive Officer – Ron Dufficy, has an established track record in senior leadership and strategy,?he has been with Elixinol Wellness Limited since 2017, prior to the Company's IPO, and more recently held the role of the Company's Global Chief Financial Officer. Ron’s previous experience includes holding senior international finance roles, leading large international teams and driving growth initiatives across highly regulated markets.? Prior to Elixinol Wellness, Ron held the roles of General Manager, Global Shared Services, at Aristocrat (ASX: ALL valued at $24b) and Chief Financial Officer, Aristocrat America, Aristocrat’s largest and most profitable division. ?

About the company

ELIXINOL GLOBAL LIMITED (EXL)?is an ASX-listed company, pioneering in the global hemp industry, innovating, marketing, and selling hemp and other plant-derived food, skincare, and nutraceutical products: ?

? In Australia, Elixinol Wellness operates a vertically integrated business which produces, manufactures, and distributes a range of highly complementary products delivered across four verticals – human nutrition, human wellness, pet wellness and superfood ingredients. ?These products are sold under brands including Hemp Foods Australia, Mt Elephant and Field Day and are sold through grocery, wholesale, and e-commerce channels. The Australian Superfood Co supplies Australian natives and superfood ingredients to white label customers as well as food, beverage, and beauty manufacturers. ?

? In the Americas, innovating, marketing, and selling high quality Elixinol branded hemp and other plant-derived nutraceutical and skincare products based in Colorado, USA. ?

? In the United Kingdom, Japan, Brazil, Mexico and South Africa, branded hemp and other plant-derived products are available to consumers via exclusive distribution and/or trademark and know-how licensing agreements.

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DISCLAIMER: ‘The information does not constitute personal financial advice. Consult your adviser or broker prior to making any investment decision.

For further information about this company, email – shareholder@pelshare.com.au