SYDNEY – Elixinol Wellness Limited (Elixinol or the Company) (ASX:EXL; OTCQB:ELLXF) is pleased to communicate that Assembly Bill 45 (AB45) was signed into law by Californian Governor, Mr Gavin Newsom on 6 October 2021, establishing a comprehensive regulatory framework for the manufacture and retail sale of products in California containing hemp derived cannabidiol (CBD), including dietary supplements, topicals, over-the-counter, and pet products, among others.
AB45 also includes testing, labeling, approved source and registration requirements. The industry is now awaiting details on regulations and there will be a lead time to allow for products to meet compliance obligations.
The state of California represents Elixinol’s #1 e-commerce sales market and is the largest CBD market in the US which means the passage of this bill will create a well-defined and stable regulatory environment and will result in new business opportunities for compliant and reputable players like Elixinol. As the largest CBD market in the US, California is likely to influence regulatory change across the nation.
Global CEO, Oliver Horn, commented, “The passage of AB 45 is a very positive development – both for reputable hemp derived CBD product providers like Elixinol, and the many retailers and consumers seeking to enjoy the benefits of high quality and safe CBD products.
“The new guidelines for companies that sell products with hemp extracts could help clean up the CBD market nationwide, given California is by far the largest and most important CBD market in the US. We expect it to create new trade opportunities between Elixinol and major retailers, who were previously seeking clear regulatory guidance at the state level.
“This is also a timely development for our US business following the appointment of the Market Performance Group earlier in September as our exclusive sales representative to access customers in the Food, Drug and Mass retail channels nationwide as we are preparing our business for future federal and FDA regulations.”
The bill passage coincides with the launch overnight of a key growth driver for Elixinol’s US business – an upgraded online shop and e-commerce platform (www.elixinol.com).
45% of CBD consumers purchase online and the new site is designed to improve user experience, with faster load times, mobile optimisation and with new features such as loyalty rewards; a buy now, pay later option and a subscription service.
“California is a major market opportunity,” said Mr Horn, “it is already our strongest e-commerce sales state, accounting for 14% of online revenues and with the highest conversion rates. We are looking forward to using this new platform and a range of great new options for customers to capture further growth, both in California and the rest of the US.”
(This information is primarily sourced from Elixinol Wellness Ltd. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).