LGC Capital announces that it has increased its ownership to 40.4% of Little Green Pharma in Australia https://howardgroupinc.com/2019/05/lgc-capital-announces-that-it-has-increased-its-ownership-to-40-4-of-little-green-pharma-in-australia/
MONTRÉAL, May 22, 2019 – LGC Capital Ltd. (TSXV: LG) (OTCQB: LGGCF) (“LGC” or the “Corporation”) announces that after much negotiation, it has successfully acquired, from a non-executive founder, additional shares in Australia’s licensed medical cannabis producer Little Green Pharma (LGP) bringing its ownership from 14.1% up to 40.4%.
LGP was the first, and is currently the only, domestic cannabis company in Australia producing a locally grown medicinal cannabis medicine for patients. LGC believes the opportunity to increase its ownership in LGP creates significant value for its shareholders and enables the Corporation to further take part in the rapidly expanding Australian medical cannabis market.
Little Green Pharma has had over 400 patients approved in Australia, with new patients increasing exponentially month-over-month. The Australian industry represents one of the fastest growing international medical cannabis markets globally, with approximately 6,400 SAS B forms approved to the end of April 2019 of which 1,110 occurred in April alone. Prohibition Partners estimates that the Australian medical cannabis market could be worth US$2 billion by 2028 and US$8.7 billion if adult use was to become legal.
Little Green Pharma produces its products in compliance with Australia’s strict Therapeutic Goods Order 93 Standard for Medicinal Cannabis and is one of only a handful of companies with an EU GMP recognised medical cannabis facility.
Expansion plans for LGP‘s cultivation facility have been submitted to Australia’s Office of Drug Control to increase production capacity in order to supply the Company’s growing demand for its products in Australia as well as to export product via its new distribution agreements in Germany, the United Kingdom, Canada and New Zealand.
Mazen Haddad, CEO of LGC Capital, stated; “Little Green Pharma was one of our first investments and as its business and opportunities expanded, and the opportunity to increase our shareholding to over 40% is a significant move for the Company. To be the first in Australia to grow and produce a full line of Medical THC Cannabis products, in accordance with both Australian and European standards, represents a great opportunity for LGC and its global initiatives. We look forward to expanding Little Green Pharma‘s production capacity and help growing its reach throughout the globe.”
Terms of the transaction:
Subject to TSXV approval, LGC Capital will pay to the vendor of the shares, AUS$5.5M. Closing of this transaction is expected to be within 95 days of signing the agreement.
Statutory information: For the financial year end 30 June 2018, Little Green Pharma generated Revenue of AUS$8,337 and had a net loss for the period of AUS$3,757,810. This was first year that the company was operational as a legal cannabis business.