Investee Company Update: Little Green Pharma LTD

RNS Number : 4428W

Seed Innovations Limited

17 April 2023

 

17 April 2023

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').

The Company owns 7,324,796 ordinary shares in LGP representing 2.46% 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 following link:  https://investor.littlegreenpharma.com/site/content/

Start of Little Green Pharma Ltd announcement:

17 April 2023

First shipment to Ilios Santé in Germany

Highlights:

· First shipment of new high THC strain delivered to Ilios Santé in Germany

· Opens pathway to second major German medicinal cannabis distributor in addition to Demecan

· Follows further Danish shipment to Demecan with deliveries reinforcing LGP's first-mover European strategy

· Ilios Santé is a wholly-owned subsidiary of The Bloomwell Group, a leading European medical cannabis healthcare group

Little Green Pharma Ltd (ASX: LGP, "LGP" or the "Company") is pleased to announce the delivery of its first shipment of a high THC medicinal cannabis flower product to Ilios Santé in Germany from the Company's Danish facility. The shipment also follows another recent shipment of 30kg of high-THC flower delivered by the Danish Facility to Demecan in February.[1]

Based on the minimum annual quantities to be purchased by Ilios Santé during the two-year term, the Agreement has a value of ~$2.3 million (~€1 .4 million[2]), with ~80% of the minimum quantities falling in the second year. Further details in relation to the supply agreement is set out in the ASX announcement dated 12 July 2022.

With signing of commercial terms back in July 2022, the shipment represents the culmination of a nine-month engagement process that includes obtaining licences, vendor qualification and quality assurance audit, and finalising quality arrangements between the parties.

The long lead-time between commercial terms and first shipment due to the extensive quality and regulatory requirements associated with shipping pharmaceuticals between countries, mean first-mover suppliers are frequently best placed in new markets given the time and effort distributors face qualifying and approving replacement supply arrangements with new vendors. LGP regards this insight as critical in understanding LGP's long-term strategy to grow and consolidate market gains in existing territories while continuing to move rapidly into new European markets.

End of Little Green Pharma Ltd announcement:

- Ends -

For further information on the Company please visit:    www.seedinnovations.co     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 30 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.

About Ilios Sante and the Bloomwell Group

Ilios Santé is an EU Good Distribution Practices (GDP) licensed pharmaceutical wholesaler headquartered in Frankfurt, Germany. It is a wholly owned subsidiary of leading German medical cannabis healthcare company, The Bloomwell Group, a holding company for medical cannabis companies with a mission to build, acquire and invest in ESG healthcare companies along the entire value chain outside of cultivation. As a member of the Bloomwell Group, Ilios Santé is part of a fully integrated group of distinct cannabis-related brands each fulfilling a distinct purpose, including Ilios Santé in the medicinal cannabis space, Algea Care, Europe's leading telemedicine platform, and Bloomwell's lifestyle brand, Breezy.

For more information about Little Green Pharma go to:    www.littlegreenpharma.com

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[1] See ASX announcement re supply agreement between LGP Denmark and Deutsche Medizinalcannabis GmbH dated 19 April 2022

[2] EUR:AUD 0.6128 (as at14 April 2023)

 

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