Elixxer Ltd (TSXV: ELXR) announced this morning that Global Canna Labs, Elixxer’s 30% owned Jamaican cannabis producer, has successfully exported medical cannabis from Jamaica to Canada. The export was the first of its kind for the Tier 3 operator, who intends to export further product from Jamaica to legal global jurisdictions.
In total, 10 kilograms of dried medical cannabis was shipped from Jamaica to Canada by Global Canna. Despite the accomplishment, little reason was provided on why the product was actually shipped to Canada given the current oversupplied status of the legal cannabis market. With stockpiles growing across the country, it’s unclear what purpose additional importation would serve while domestic prices of wholesale cannabis continue to freefall.
While Global Canna hailed the transaction as a sign of “reducing barriers and finding ways to bridge the legal cannabis trade between Canada and the Caribbean,” it’s unclear exactly whom the product was shipped to and how the product is to be legally distributed to medical cannabis patients. Little color was provided by Elixxer on the transaction, other than indicating that one had occurred.
Elixxer Ltd currently holds secured debentures in Global Canna Labs, that when converted will equate to a 30% ownership in the Jamaican operator. The firm also collects a 5% royalty on Global Canna’s net sales.
Elixxer last traded at $0.04 on the TSX Venture.
Information for this briefing was found via Sedar and Elixxer Ltd. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
