Elixinol Global (ASX:EXL;OTCQX:ELLXF) released an update on Monday (December 2) regarding Elixinol Japan following its review of its Japanese operations as notified to the market in October.
As quoted in the press release:
The Company assessed various commercial alternatives for its Japanese business. As a result, Elixinol Global has agreed to sell its 50.5% interest in Elixinol Japan to Mr Takeshi Sakurada who is one of the other shareholders of Elixinol Japan.
The net profit impact of the sale of Elixinol Japan on the Company is expected to be a loss of A$2.2m. Andrew Duff, Chairman of the Company, said “We have made an important decision to move to a licensing model for Japan and to press ahead with our growth priorities in our key markets. We look forward to focusing our efforts on building our distribution channels in North America and Europe and reinforcing a positive and growth-focused culture within our business.”