Investee Company Update: Little Green Pharma Ltd

RNS Number : 4329I

Seed Innovations Limited

02 December 2022

 

2 December 2022

SEED Innovations Limited

("SEED" or the "Company")

Investee Company Update: Little Green Pharma Ltd

SEED Innovations Ltd, the AIM-quoted company investing in fast-growing and industry-leading businesses with a focus on the medical cannabis, health, and wellness space, is pleased to note an announcement released on the ASX by its portfolio company, Little Green Pharma Ltd ('LGP'), regarding its wholly owned subsidiary, Little Green Pharma Denmark ApS ("LGP Denmark"). LGP Denmark has entered into a second agreement with Cannamedical Pharma GmbH for the exclusive supply of LGP's medicinal cannabis cultivator, SMS.

The Company owns 7,324,796 ordinary shares in LGP representing 2.8% of LGP's issued share capital.

The following extract from the announcement is set out without material changes or adjustments and the announcement in full can be accessed from the link below this section.

Highlights:

· LGP Denmark places a second exclusive medicinal cannabis flower cultivar under a supply agreement with Cannamedical

· Subject to Cannamedical purchasing minimum exclusivity volumes, agreement has a minimum value of A$4.5 million (€3 million) over two years

· Company targeting delivery of first shipment of non-irradiated SMS Product in first quarter of CY2023

· The agreement facilitates LGP's prompt replacement of SMS strain into German market following termination of Four 20 Pharma supply agreement and demonstrates the desirability of the SMS strain and benefits of LGP's broad distribution partner base in Europe

Little Green Pharma Ltd (ASX: LGP, "LGP" or the "Company") is pleased to announce its wholly owned subsidiary, Little Green Pharma Denmark ApS ("LGP Denmark"), has entered into a second agreement ("Agreement") with Cannamedical® Pharma GmbH ("Cannamedical") for the exclusive supply of LGP's medicinal cannabis cultivar SMS ("SMS Product")

Under the Agreement, LGP may deliver non-irradiated SMS Product as an alternative to irradiated SMS Product, with the Company targeting its first shipment of non-irradiated SMS Product to Cannamedical in the first quarter of calendar year 2023.

The Agreement enables the supply of the LGP's SMS Product into the German market in lieu of supply under the terminated Four 20 Pharma supply agreement, with the speed of substitution demonstrating the desirability of the SMS strain and benefit of LGP's broad distribution partner base in Europe.

Under the Agreement, LGP will exclusively supply the Product to Cannamedical for sale in Germany subject to Cannamedical ordering specified minimum quantities every six months to maintain exclusivity. In addition, the Product pricing contemplates a THC adjustment for every percentage point the THC content is above or below 22%, and with the payment terms requiring the upfront payment of a portion of the purchase price upon delivery. Subject to Cannamedical purchasing its minimum exclusivity volumes, the Agreement has potential value of over A$4.5 million (€3 million) over its two-year term.

The announcement can be viewed in full on LGP's website via the following link: 

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02607525-6A1126341?access_token=83ff96335c2d45a094df02a206a39ff4

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For further information on the Company please visit:  www.seedinnovations.com   or contact:

Ed McDermott Lance de Jersey	SEED Innovations Ltd	E:  [e-mail]
James Biddle Roland Cornish	Beaumont Cornish Limited, Nomad	T: (0)20 7628 3396
Isabella Pierre Damon Heath	Shard Capital Partners LLP Broker	T: (0)20 7186 9927
Catherine Leftley Isabelle Morris Max Bennett	St Brides Partners Ltd, Financial PR	E:  [e-mail]

Notes

Seed Innovations Ltd

SEED Innovations is an AIM quoted investment company focused primarily on disruptive high growth life sciences and technology businesses particularly within the medical cannabis arena. The Company's strategy is to identify early-stage opportunities that have an upcoming investment catalyst and grow its portfolio in terms of value whilst limiting the number of investee companies to a level where relevant time can be devoted to each.

About Little Green Pharma

Little Green Pharma is a global, vertically integrated and geographically diverse medicinal cannabis business with operations from cultivation and production through to manufacturing and distribution. The Company has two global production sites for the manufacture of its own-branded and white-label ranges of GMP-grade medicinal cannabis products, being a 21,500m2 cultivation and 4,000m2 GMP manufacturing facility capable of producing over 20 tonnes of medicinal cannabis biomass per annum located in Denmark (EU) and an indoor cultivation and manufacturing facility located in Western Australia capable of producing ~3 tonnes of medicinal cannabis biomass per annum. Little Green Pharma products comply with all required Danish Medicines Agency and Therapeutic Goods Administration regulations and testing requirements. With a growing range of products containing differing ratios of active ingredients, Little Green Pharma supplies medical-grade cannabis products to Australian, European and overseas markets. The Company has a strong focus on patient access in the emerging global medicinal cannabis market and is actively engaged in promoting education and outreach programs, as well as participating in clinical investigations and research projects to develop innovative new delivery systems. For more information about Little Green Pharma go to: www.littlegreenpharma.com

 

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