Investee Company Update: Little Green Pharma Ltd

Seed Innovations Limited

07 December 2023

 

7 December 2023

SEED Innovations Limited

("SEED" or the "Company")

Investee Company Update: Little Green Pharma Ltd

SEED Innovations Ltd, the AIM-quoted company investment company providing shareholders with exposure to early-stage health, wellness and medical cannabis companies to which, in normal circumstances, they have limited access to, is pleased to note an announcement from its portfolio company, Little Green Pharma Ltd ('LGP') on the ASX. LGP is well-positioned to capitalise on a significant amendment to the French health security bill, one which is set to bring about a substantial transformation in the integration of medicinal cannabis into the French healthcare system.

The Company owns 7,324,796 ordinary shares in LGP representing 2.44% of LGP's issued share capital. 

Commenting on the announcement, Ed McDermott, CEO of Seed said: "I am thrilled to see LGP's continued commitment to supplying the French medical cannabis market. The French government securing a post-pilot transitional period supply of up to nine months, followed by a bespoke, subsidised public access regime for an indefinite period, is a significant step forward. As one of the select few companies supplying during this transitional period, LGP remains at the forefront of the market. This positions LGP as a key player not only during the transitional phase but also underscores its strong potential to play a pivotal role as the French market develops well beyond. This achievement marks a positive milestone for both LGP and the advancement of medical cannabis accessibility in France."

The following announcement extract is set out without material changes or adjustments and the announcement in full can be accessed from the following link: https://www.investlittlegreenpharma.com/site/showdownloaddoc.aspx?AnnounceGuid=00ebb2cd-0780-48fa-81ec-dc3b5300386b

LGP to capitalise as France integrates medicinal cannabis into healthcare system

·    LGP to significantly benefit from new laws governing two-stage post-French Pilot medicinal cannabis supply in France

·    First stage is a 9-month transitional period covered by a €10m budget during which LGP and two other suppliers have an exclusive right to supply

·    Second stage is a bespoke, subsidised public access regime for medicinal cannabis products meeting certain product registration requirements

·    LGP and its distribution partners to capitalise on first mover advantage following their continuous supply to the Pilot since 2021 and long-established relationships with existing patient, hospital prescriber, and pharmacy networks

·    France represents one of the largest potential medicinal cannabis markets in Europe with a Total Addressable Market of €5.6 billion (A$9.3 billion)¹

Little Green Pharma Ltd (ASX: LGP, "LGP" or the "Company") is poised to significantly capitalise on a major amendment to the French health security bill, paving the way for a substantial transformation in how medicinal cannabis is integrated into the French healthcare system.

In 2021, LGP and leading French pharmaceutical distributors, Intsel Chimos and Centre Lab, were appointed as primary supplier and distributor of LGP's 1:20 THC:CBD and CBD50 medicinal cannabis oils for a two-year French pilot of medicinal cannabis products in the treatment of certain clinical conditions ("Pilot").² Both 1:20 THC:CBD and CBD50 medicinal cannabis oil products were produced at LGP's Australian operations.

Following its initial success, the Pilot was extended for a third year until March 2024³ with LGP and Intsel Chimos re-appointed as primary CBD oil supplier for both products.⁴

With the program nearing the end of the extension period, the French Government has signed into law an amendment to the Projet de loi de financement de la Sécurité sociale (Social Security Financing Order) ("PLFSS") which supports the post-Pilot supply of medicinal cannabis from March 2024.

The Amendment confirms up to a 9-month transitional period ("Transitional Period") followed by a bespoke, subsidised public access regime for an indefinite period ("Supply Authorisation Period").

 During the Transitional Period, an exclusive supplier pool of only the existing suppliers engaged in the Pilot program - LGP, Aurora and Panaxia - will be entitled to supply patients with medicinal cannabis.

The Supply Authorisation Period will see the establishment of a subsidised public access regime for medicinal cannabis in France, providing improved accessibility to French patients. Full announcement: https://tinyurl.com/3cte6884

¹  EUR = 1.66549 AUD

² Refer to ASX announcement dated 27 January 2021

³ Refer to December Quarterly ASX release dated 16 January 2023.

⁴ Refer to ASX announcement dated 8 May 2023

-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 Ana Ribeiro Isabelle Morris	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. 

 

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