Information  X 
Enter a valid email address

Seed Innovations Ltd (SEED)

  Print   

Wednesday 01 September, 2021

Seed Innovations Ltd

Investee Company Update: Little Green Pharma Ltd

RNS Number : 3639K
Seed Innovations Limited
01 September 2021
 

Seed Innovations Ltd / AIM: SEED / Sector: Closed End Investments

1 September 2021

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 the announcement released on the ASX by its portfolio company, Little Green Pharma Ltd ('LGP') including its preliminary final report for year ended 30 June 2021.  SEED owns a holding of 7,324,796 ordinary shares in LGP representing 3.14% of LGP's issued share capital.

Alfredo Pascual, VP of Investment Analysis of SEED, commented: "I am filled with confidence from this latest financial report from LGP, showing a positive snapshot of the current financial position of the business following a year of growth, both organic and by acquisition, in the Australian and overseas markets.

"LGP has had a meaningful increase in revenue during the period and has seen gross margins increasing to 82%, with cash at the period end standing at A$40.2m.

"Alongside the strong financials reported are the reported growing patient numbers, particularly in Australia where numbers grew to over 15,000 at the end of the reporting period compared to 4,550 the prior year. This trend is expected to continue with their expanding international reach, including the new GACP/GMP licensed medicinal cannabis production facility in Denmark, and distribution deals agreed for Poland and products already being delivered in Germany, the United Kingdom, France, New Zealand and Brazil."

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.

"Review of operations

During the reporting period, LGP Group generated over $7,003,630 in revenue with a profit after tax of $24,603,555 (compared to the previous year's loss of $9,315,435) predominately reflecting the impact of the bargain purchase of the Denmark Facility for accounting purposes.

The Company experienced strong growth in underlying demand in Australia with the number of patients increasing from 4,550 at 30 June 2020 to over 15,000 at the end of the reporting period.

Progress was also made in overseas markets, with products being delivered to Germany, the United Kingdom, France, New Zealand and Brazil. The Company also signed a five -year distribution agreement with Balancial in Denmark as well as an exclusive distribution agreement for Poland with a subsidiary of Pelion SA, the largest operator in the Polish and Lithuanian healthcare sector.

The gross margin continued to improve as a result of the increasing scale and operating efficiencies, with the gross margin increasing from 51% to 61% (when excluding changes to the fair value of biological assets) and increasing from 52% to 82% (when including changes to the fair value of biological assets).

 As at 30 June 2021, the Group had a strong cash position of $40.2 million.

During the reporting period, the Group's key focus has been on expanding its Western Australian production operations, acquiring additional production capacity in the EU, further developing sales channels into Europe and internationally, and the education of healthcare professionals in Australia. Meanwhile, the Group's research and development activities continue to be focussed on the development of new and innovative drug delivery systems and products to meet current market demand.

The Group had a number of key achievements during the reporting period, including:

• the acquisition of a world-class GACP/GMP licensed medicinal cannabis production facility in Denmark (EU) capable of producing in excess of 20 tonnes of biomass per annum (including 12 tonnes per annum of dried cannabis flower) for an upfront payment of C$10 million plus a deferred payment of C$10 million plus interest due 30 June 2022;

• the successful fundraising of $54.3 million of capital pursuant to two placements and a Share Purchase Plan, including a $15 million investment by Hancock Prospecting;

• the receipt of binding purchase orders from key distribution partner Demecan in Germany which, if annualised based on Q4 order, effectively utilise LGP's entire WA flower production capacity;

• the entry into new distribution agreements for Denmark and Poland;

• the award of one of 4 primary supplier roles to supply cannabis medicines to the French national medicinal cannabis Pilot Program;

• sponsorship of the QUEST Initiative, a large-scale observational quality of life study into the treatment of chronic conditions with medicinal cannabis, and successful completion of a clinical investigation into the efficacy of LGP Classic 10:10 medicinal cannabis oil in treating chronic refractory pain;

• the entry into a partnership with Health Insurance Fund (HIF) to support improved access to and affordability of medicinal cannabis including through the payment of rebates for cannabis medicines to eligible HIF members;

• the re-rating of production capacity and grant of a TGA GMP licence for the Company's Western Australian facility; and

• the progression of the ARISE drug delivery project through the first of its three development phases.

Post the reporting period, the Company also acquired 16,000 m2 of land underlying its Western Australian production facilities as well as two adjoining properties for ~ $6.0 million (with $4.2 million paid in cash and balance in scrip)."

The announcement can be viewed in full on LGP's website via the following link: PreliminaryFinalReport (littlegreenpharma.com)

-Ends -

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

 

Ed McDermott /

Lance de Jersey

SEED Innovations Ltd

Email:    [email protected]

 

James Biddle /

Roland Cornish

Beaumont Cornish Limited,

Nomad

 

Tel: +44 (0) 207 628 3396

Isabella Pierre /

Damon Heath

Shard Capital Partners LLP

 

T: +44 (0)20 7186 9927

Catherine Leftley /

Isabel de Salis

St Brides Partners Ltd,

Financial PR

 

Email: [email protected]

 

Notes

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.

 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word “Reach” in the source column of the News Explorer pages of London Stock Exchange’s website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
NRAUPUMGBUPGUMG

a d v e r t i s e m e n t