Little Green Pharma is a leader in the Australian cannabis industry; cultivating and manufacturing Australian grown pharmaceutical-grade medicinal cannabis.
Little Green Pharma is pleased to announce the acquisition of a world class cannabis GACP cultivation and EU-recognised GMP licensed cannabis manufacturing facility located in Denmark (“Denmark Facility”). The Company has also received firm commitments to raise A$27.2 million by way of placement to institutional and sophisticated investors in connection with the acquisition.
Comprising a 21,500 m2 cultivation site and 4,000 m2 post-harvest GMP manufacturing site, LGP’s Denmark Facility can produce in excess of 20 tonnes of biomass per annum including 12 tonnes per annum of GMP-manufactured cannabis flower for supply as bulk and finished medicinal cannabis flower products into global markets.
Little Green Pharma acquired the Denmark Facility via the purchase of 100% of the securities in the owner / operator of the Facility, Canopy Growth Denmark ApS (“LGP Denmark”) for C$20 million, with C$10 million paid at Completion and the balance payable in 12 months’ time from Completion.Little Green Pharma plans to ramp up production at its Denmark Facility in line with market demand and anticipates producing LGP-branded and white-label medicines as well as bulk cannabis flower products for supply into global markets.
This acquisition positions Little Green Pharma as a leading global pure play medicinal cannabis producer and owner of one of the largest cannabis production assets in Europe.
Managing Director Fleta Solomon said “The acquisition is a step change for LGP. We have been speaking for some time about the need to increase our production capacity and the Denmark Facility not only gives us the cultivation and manufacturing capacity we need but does so immediately. We won’t be constrained by the two-year build and permitting time required to expand our existing West Australian Facility.“We are well positioned in the market to capitalise on the brand equity LGP has built in Europe and Australia, with the Denmark Facility providing immediate access to medical grade product at volumes that will allow us the opportunity to accelerate our growth strategy.
“We are confident this Acquisition is an efficient use of our capital and will drive long term value for our shareholders. The Denmark Facility provides more than eight times the capacity of our previous planned production expansion.
“Purchasing the Denmark Facility provides both cost and time savings and was a preferable option to building out production capacity at our existing facility. We’ll keep our foot on our Australian property for longer term growth but are now able to redeploy the significant capex investment we had planned.
“We greatly appreciate the support of our institutional shareholders in helping us accelerate our growth strategy.”
LGP has received firm commitments to raise A$27.2 million (before costs) from existing investors, including a A$15 million commitment from Hancock Prospecting Pty Ltd (“Hancock Prospecting”). Hancock Prospecting is one of Australia’s largest mining and resources companies and will hold over 10% of the Company following the Placement.
Approximately 45.3 million new fully paid ordinary shares in the Company will be issued under the Placement at an issue price of A$0.60 per new share.
Read the full ASX announcement
Kings Park Road, West Perth
PO Box 690, West Perth WA 6872
Ph: +61 8 6280 0050
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