Elixinol Wellness (ASX:EXL) has spent September 2026 reshaping itself around Australia. On 7 September it completed the sale of its United States business, and on 24 September it announced a deal to buy Vitable, a personalised supplement subscription platform. The central point is a change of strategy: from a hemp company with a large offshore arm to a smaller Australian wellness group seeking recurring consumer revenue.

What Elixinol does

Elixinol is a Melbourne-based wellness company with hemp-derived and nutrition brands. Its Australian segment, as reported for the first half of FY2026, includes Hemp Foods Australia, The Healthy Chef and a hemp ingredients business.

The US exit

The company announced a binding offer for the US divestment on 31 August and reported completion on 7 September 2026. A secondary report puts the sale price to Ananda Health at $465,000. The Americas segment is excluded from continuing operations in the half-year accounts.

Half-year results

The Appendix 4D released on 31 August 2026 reported, for continuing operations:

Revenue of $7.2 million, up 5.8% from $6.8 million.

Gross Margin of 43.2%, against 33.5% a year earlier.

Adjusted EBITDA loss narrowing to $0.1 million from $2.1 million.

Statutory loss after tax of $1.1 million, compared with $3.1 million.

A cash balance of $1.0 million at period end.

Segment Revenue was $2.871 million at Hemp Foods Australia, $2.070 million at The Healthy Chef and $1.326 million from hemp ingredients.

The Vitable deal

On 24 September 2026 Elixinol announced a binding term sheet to acquire Vitable in an all-scrip transaction valued at up to $3.5 million. Reports describe $2.5 million of upfront Equity issued across five tranches, plus a contingent performance component of about $647,000 that one outlet rounds to $1 million.

Vitable was founded in 2019 and sells personalised supplements by subscription. Company material cited by media says it generates more than $5 million in revenue, has around 7,850 active subscribers and has completed 1.84 million health assessments. A Vitable Shareholder has committed $500,000 through a convertible note for working capital, according to the same reports.

Company guidance

Management says the combined group could reach about $20 million of annual revenue in the near term, with a longer-term goal of roughly $27 million revenue and $3 million EBITDA by 2028 if the earn-out is fully realised. These are targets, not forecasts endorsed here, and combined revenue is not recognised revenue.

Interpretation and risks

Subscription revenue tends to be more predictable than wholesale sales, which is the logic management gives. But the deal carries clear risks:

Completion needs shareholder approval, with an extraordinary general meeting expected in early November 2026.

Issuing scrip will dilute existing holders.

The group has only just started to narrow losses, and cash was $1.0 million at the half-year balance date.

Integrating a Business with about a third of Elixinol’s revenue base is a real execution task.

What to watch

The confirmed milestone is the shareholder meeting on the Vitable transaction, expected in early November 2026. The next quarterly cash report will show how the reset is tracking, though its date was not confirmed.