Elixinol Global confirmed the non-compliant sale of its hemp-derived CBD products by its subsidiary Elixinol Japan.
Elixinol Global (ASX:EXL,OTCQX:ELLXF) confirmed the non-compliant sale of its hemp-derived cannabidiol (CBD) products by its subsidiary Elixinol Japan.
As quoted in the press release:
The breach was discovered internally following the recent review of each global business unit’s operations. The Company takes its compliance with all legislation and regulations seriously and is conducting an investigation into the circumstances of the non-compliance in relation to the hemp-derived CBD business unit within Elixinol Japan.
The non-compliance relates to the strict requirements in Japan on sourcing CBD from only hemp stalk and seed. The Company expects that the investigation (which involves an independent legal expert) will be completed by mid-November 2019.
The Company increased its ownership in Elixinol Japan from 10 percent to 50.5 percent for A$2.2 million in September 2018.