Elixinol Global Limited Annual Report 2020

The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the ‘Group’ or ‘Elixinol’) consisting of Elixinol Global Limited (referred to hereafter as the ‘Company’ or ‘parent entity’) and the entities it controlled at the end of, or during, the year ended 31 December 2020. DIRECTORS The following persons were directors of Elixinol Global Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Helen Wiseman Non-Executive Chair (appointed Chair 10 September 2020) Non-Executive Director (appointed 21 April 2020) Paul Benhaim Non-Executive Director Former Non-Executive Chair (appointed Chair 6 April 2020, ceased 10 September 2020) Oliver Horn Global Chief Executive O’cer and Executive Director (appointed 21 April 2020) Executive Director (appointed 21 April 2020) Former Non-Executive Director (appointed 6 April 2020) Stratos Karousos Former Group Chief Executive O’cer (ceased 21 April 2020) Former Executive Director (ceased 21 April 2020) Andrew Du” Former Non-Executive Chair (ceased 6 April 2020) Greg Ellery Former Non-Executive Director (ceased 6 April 2020) PRINCIPAL ACTIVITIES The principal activities of the Company during the half-year relate to its operation as a holding company for each of Elixinol LLC (‘Elixinol Americas’), Elixinol BV and Elixinol Ltd (together ‘Elixinol Europe’) and Hemp Foods Australia Pty Ltd (‘Hemp Foods Australia’). The principal activities of the Group are: Elixinol Americas (hemp derived cannabidiol (‘CBD’) dietary supplements and topicals) Elixinol Americas is based in Colorado USA, and was established in 2014 to specialise in the manufacturing and distribution of products made from premium quality, predominantly ‘whole plant’ full spectrumCBD hemp supplements which is extracted from organically grown industrial hemp. Elixinol Europe (hemp derived cannabidiol (‘CBD’) food and cosmetics) Elixinol Europe is based in Utrecht, The Netherlands, and London, United Kingdom, and was established in 2018 to specialise in the development, sourcing, marketing and distribution of hemp derived cannabidiol ‘CBD’ products including skincare. Hemp Foods Australia (hemp derived foods and skincare products) Hemp Foods Australia is based in New South Wales Australia, was founded in 1999 and manufacture, market and distribute hemp derived food, supplements and skincare products in Australia. Hemp Foods Australia distributes mainly within Australia but also supplies to export markets. DIVIDENDS There were no dividends paid, recommended or declared during the current or previous financial year. REVIEWOF OPERATIONS Operating and Financial Review For the year ended 31 December 2020, the Group reported a net loss from continuing operations after income tax of $104,478,000 (2019: $80,512,000 net loss). For the year ended 31 December 2020, the Group reported a net loss from discontinuing operations after income tax of nil (2019: $2,559,000 net loss). For the year ended 31 December 2020, the Group reported total comprehensive loss after income tax of $104,506,000 (2019: $82,928,000 total comprehensive loss). The Group’s revenues from continuing operations for the year ended 31 December 2020 were $15,010,000 (2019: $30,714,000). Directors’ Report F INANCI AL REPORT 14 Elixinol Global Limited | Annual Report 2020