Why Elixinol Wellness (ASX:EXL) is leaning on The Healthy Chef and hemp foods while funding headroom stays tight

Sonal Goyal

19 October 2026 10:59 PM AEDT

Why Elixinol Wellness (ASX:EXL) is leaning on The Healthy Chef and hemp foods while funding headroom stays tight

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Shifting from CBD to hemp foods and nutrition

Elixinol Wellness Limited (ASX:EXL) describes itself as a nutrition and wellness company operating in Australia and the United States. Its stated focus is an Australian hemp foods and nutrition business, with brands including The Healthy Chef, Hemp Foods Australia, Mt Elephant and Australian Primary Hemp, sold through grocery, wholesale and E-commerce channels. The central question is whether The Healthy Chef can grow faster than funding pressure builds.

Latest verified developments

In its quarterly update released on 28 July 2026, covering the quarter ended 30 June 2026, Elixinol reported unaudited Revenue of A$4.3 million, up 5% on the prior corresponding period, which it called a record. The figure excludes the legacy US CBD operations. Gross Margin rose to 45% from 38%, and Gross Profit was A$2.0 million, up 26%.

The Healthy Chef generated A$1.15 million, up 20% year on year and 27% of group revenue. A national rollout of its premium range into Priceline stores was announced in May 2026. The company also says the Brand is developing bioactive peptide products, which are intentions rather than revenue.

Cash, burn and funding

The quarterly cash report is the more cautious part of the picture. Cash at 30 June 2026 was A$1.0 million, down from A$1.24 million at the end of the prior quarter. Net operating cash outflow was A$0.58 million, which management attributes partly to non-recurring items such as AGM costs, out-of-cycle payments and Loan note interest. Underlying Operating Cash Flow was positive at about A$0.05 million, the third consecutive positive quarter on that measure, according to the company.

Total financing facilities were A$4.1 million, of which A$4.04 million was drawn, leaving A$56,000 unused. Elixinol itself estimated 1.8 quarters of funding on a net operating outflow basis. It also uses Shopify and PayPal revenue-advance facilities, and said an increase to its ScotPac inventory finance Facility was finalised in July 2026.

A A$1.35 million secured 12-month loan note facility, carrying 12% interest, was originally due on 31 May 2026. After quarter-end some holders converted into convertible notes and the remainder extended Maturity to 27 August 2026. We did not find a disclosure confirming what happened at that date.

Dilution

Shareholders approved the convertible note facility and capacity for an Equity raise at the 27 May 2026 AGM, with the latter approval expiring on 27 August 2026. In a cleansing notice dated 3 September 2026, Elixinol said it had issued 24,210,906 fully paid shares on conversion of 135,000 convertible notes at A$0.005576 a share, implying roughly A$135,000. Conversions of this kind increase the share count.

Sector context and risks

Packaged nutrition is a competitive category in which shelf space and promotional spending matter. Elixinol's key risks, based on its own disclosures, are limited funding headroom, reliance on Debt and revenue-advance facilities, and the need to convert early retail ranging into sustained sales. Management expects underlying operating cash outflows to improve in the second half of 2026, citing the Priceline rollout, margin initiatives and overhead cuts. That is company guidance, not a verified outcome.

Upcoming milestones

We did not find a confirmed date for the next quarterly report, although ASX rules require one within a month of quarter-end.

FAQs

Q: What brands does Elixinol Wellness (ASX:EXL) sell?

A: Elixinol Wellness Limited (ASX:EXL) brands include The Healthy Chef, Hemp Foods Australia, Mt Elephant and Australian Primary Hemp, sold through grocery, wholesale and e-commerce channels.

Q: How did The Healthy Chef perform in the June 2026 quarter?

A: The Healthy Chef generated A$1.15 million, up 20% year on year and 27% of group revenue. A national rollout of its premium range into Priceline stores was announced in May 2026.

Q: How much funding headroom did Elixinol have at 30 June 2026?

A: Cash was A$1.0 million and, of A$4.1 million in total financing facilities, A$4.04 million was drawn, leaving A$56,000 unused. The company estimated 1.8 quarters of funding on a net operating outflow basis.

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