Elixinol Global Limited (Elixinol Global or the Company) (ASX:EXL; OTC:ELLXF) is pleased to announce that it has signed an exclusive Trademark and Know-How License Agreement (Agreement) with Elixinol Co., Ltd (Elixinol Japan), ensuring Elixinol can continue to build on its market leadership position in Japan, one of Asia’s biggest cannabidiol (CBD) markets.
Under the terms of the agreement, Elixinol Japan can use Elixinol trademarks and know-how in connection with the manufacture, advertising, distribution and sale of licensed CBD products in Japan. The Agreement is for two years with an automatic renewal of a further three year term and requires Elixinol Japan to pay Elixinol Global royalties equal to 3% of Elixinol Japan’s net sales for the first year, then a royalty of 5% on net sales for subsequent years. In line with EXL’s growth strategy, a portion of the royalties will be reinvested in growing the Elixinol brand further in Japan. Elixinol products will be manufactured in Japan to meet market specific regulatory requirements.
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