Elixinol Global Ltd (ESX:EXL) (OTCMKTS:ELLXF) has been granted a trading halt by the ASX with a potential transaction announcement pending.
The halt will remain in place until the beginning of regular trade on Monday, March 8, or when an announcement is made to market, whichever occurs earliest.
Accelerating growth strategy
The company is accelerating its growth strategy following a global re-set of initiatives boosted by a strong balance sheet and lower costs with improved operational efficiencies as well as new development catalysts through its brand relaunch and Hemp Foods Australia.
Under new group leadership and with a renewed board, Elixinol’s business has been repositioned to a more focused business with cost reductions and improved cashflows.
A substantial operational and corporate cost reduction program was completed in June 2020, leading to an annualised cost base approximately 45% lower than FY2019.
Growth in e-commerce channel
Elixinol’s focus on building e-commerce capabilities has been rewarded, with this channel contributing to 33% of overall group revenue in FY2020, up from 26% in FY2019.
The company bedded down the Magento e-commerce platform and progressed its transition to an integrated in-house, web services and digital marketing team.