Cannabis stock Elixinol Global (ASX:EXL) will acquire 25 per cent of Altmed Pets, trading as Pet Releaf, through its wholly-owned subsidiary Colorado-based Elixinol.
The agreement will see them make a financial investment into the high-growth cannabidiol (CBD) pet products market.
The investment is an extension of a long-standing relationship with Pet Releaf to which Elixinol has been the exclusive supplier of CBD extracts from Pet Releaf’s exclusive strains of hemp since inception.
Also based out of Colorado, Pet Releaf is the pioneer and market leading pet brand for hemp-derived CBD oils, topicals and treats for pets.
Elixinol will acquire 25 per cent of Pet Releaf for a purchase price of US$4.4 million cash plus fully paid ordinary shares in EXL valued at US$1.9 million.
Upon completion of Elixinol gaining an equity interest, Elixinol President Gabriel Ettenson will join the Pet Releaf Board.
Shares in Elixinol Global (ASX:EXL) are trading 4.74 per cent lower at $4.82