Investee Company Update: Little Green Pharma Ltd

RNS Number : 8747M

Seed Innovations Limited

16 January 2023

 

16 January 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 quarterly results for the period ending 31 December 2022. 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:

· Record quarterly customer cash receipts of $6.0 million

· Strong growth in LGP Danish flower sales in Australia

· Successful $4.0 million placement, with applications up to $2.0 million SPP closing today, Monday 16 January 2023

· Ethics approval granted for Schedule 3 CBD product clinical trial

· Second exclusive supply agreement with Cannamedical for SMS strain in Germany

· Wins Australian 60th National Export Awards (International Health category)

· Cash in bank at end of quarter of $7.1 million including placement funds

Quarterly financial highlights

During the quarter, the Company generated revenue of $5.3 million (unaudited) and cash receipts of $6.0 million. Cash receipts exceeded revenue due to the collection of outstanding receivables from the previous quarter and the receipt of deposits for product sales delivered in January.

The key cash flows during the quarter included:

  Customer receipts of $6.0 million

• R&D rebate of $2.3 million

• Capital raise of $4.0 million and associated fees of $0.26 million

• Repayment of R&D financing of $1.9 million

• Borrowings of $2.0 million

During the quarter the Company raised $4.0 million pursuant to a successful placement with institutional and professional investors with associated fees of $0.26 million. The Company also launched its $2.0 million SPP which is closing today, Monday 16 January 2023 at 5pm (AWST). In addition to this, the Company received its annual R&D rebate of $2.3 million which it used to repay its $1.9 million R&D financing. The Company also drew down $2.0 million from its equipment finance loan. Related party transactions during the quarter comprised $0.2 million in remuneration and allowances paid to the directors of the Company. In early January 2023, the Company paid C$0.5 million of its C$3.6 million plus interest loan to Canopy Growth Corporation arising from its purchase of the Company's Danish Facility in 2021. The Company continues to discuss potential extension terms for the balance of the loan. The Company finished the quarter with cash in bank of $7.1 million including placement funds.

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

https://investor.littlegreenpharma.com/site/pdf/a0c25716-59ba-4cbd-a55c-6a45e7e8a236/Quarterly-Activities-Report-Appendix-4C.pdf

- Ends -

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

 

END

 

 

UPDGPUAPGUPWGCQ