Elixinol Wellness global CEO Oliver Horn is stepping down in April, with a sale or merger of the group still on the cards.
In an update to the ASX, the company said preliminary findings from its strategic review had identified annual operating cost savings of around A$3.2 million “predominantly focused on reducing corporate costs and further right-sizing the Elixinol Americas operations”.
It added other opportunities, including the potential sale or merger of all or parts of the business, were still being explored.
Horn, who was appointed global CEO in April 2020, will remain on the board as a non-executive director with global CFO Ron Dufficy acting as interim CEO. Former Blackmores Australia and NZ boss David Fenlon has joined the board as independent non-executive director.
Elixinol chair Helen Wiseman said: “Throughout his period as global CEO, Oliver has demonstrated exceptional leadership, focus and integrity.
“He has led the company through a full-scale transformation towards a leaner, capital-light consumer products wellness business with a strong culture and sound foundations.
“We are very fortunate to retain his knowledge and strategic skillset on the board.”
Horn added: “I am tremendously proud of our team and the progress we have made in repositioning and transforming our global business despite the most challenging economic circumstances.
“I am now looking forward to continuing our strategic transformation as a member of the board with the welcome addition of David Fenlon, who brings with him fresh thinking and an extensive industry network to create new opportunities.”
Fenlon has over 30 years’ experience in the FMCG and consumer sectors. Currently CEO of The Platform Alliance Group, he was previously group CEO and managing director of BWX Limited and managing director, Australia and New Zealand at Blackmores.
Wiseman said Fenlon “brings with him both directly relevant category knowledge as well as distribution, regulatory and M&A expertise”.
Elixionol told the ASX it remains in a strong funding position with A$12.6m cash on hand as at December 31 2021 and $2.1m expected from one-off Covid-19 relief payments in the US.