A Chinese business that planned to buy a hemp food company from Australian-based Elixinol Global, a CBD producer, has pulled out of the deal, citing economic impacts from COVID-19.
Sydney-based Elixinol had worked on an agreement for Yunnan Luxin Biopharmeceutical to buy Elixinol’s Hemp Foods Australia, but the Chinese company terminated the agreement Tuesday, according to The Market Herald.
The agreement had called for Yunnan to buy Hemp Foods Australia for $500,000 through a share purchase agreement. Yunnan dropped out of the deal because it wasn’t satisfied with the price agreement anymore, citing the coronavirus pandemic as the reason for the dissatisfaction.
Elixinol CEO Oliver Horn said the company will continue to run Hemp Foods Australia, “pending an evaluation of all potential opportunities available with the business.”
He also said the attempted sale “was in line with its strategy to focus on a hemp-derived cannabidiol market.”