New Investment in ASX-Listed Vertically Integrated Medical Cannabis Business
FastForward Innovations Ltd, the AIM quoted company focusing on making investments in fast growing and industry leading businesses, is pleased to announce that it has invested A$1 million (£560,000) in a placing undertaken by Little Green Pharma (ASX: LGP and ‘LGP’), an ASX-Listed, vertically integrated, medicinal cannabis business with operations from cultivation and production through to manufacturing and distribution. The LGP placing raised a total of A$22m at a price of $0.65c; accordingly, FFWD expects to hold 0.9% of the Company following issue of the placing shares.
· Investment further develops FFWD’s exposure to the medicinal cannabis industry
· LGP supplies compliant medical-grade cannabis products to Australian and overseas markets
· Strong support for LGP’s A$22 million fundraise leaves the business well capitalised for further growth
· As announced by LGP on 29 January 2021, LGP achieved record quarterly results for the December 2020 quarter with s ales revenue up 90% on the previous quarter to A$2.45 million (unaudited)
· Significant recent progress made in establishment of offshore distribution channels including to the UK, Germany, and New Zealand
· A$0.65 placing price per share, as at today’s date shares currently trading at A$0.85
Ed McDermott, CEO of FastForward, commented: “As an experienced medical cannabis company investor, we have a very good understanding of the market opportunity, the international regulatory landscape and a team’s ability to deliver. Having been aware of their progress we are delighted to now support LGP, which ticks all the boxes; it has great assets, strong management, is well capitalised, and continuously delivers on its forecasts in a market where many do not. Furthermore, having engineered excellent European growth, we are confident that it will have further success internationally and deliver strong newsflow in the coming months and we look forward to supporting LGP and its management wherever we can.”
LGP has raised a total of A$22 million by way of a placement of 34 million new ordinary shares (‘New Shares’) at A$0.65 per New Share to new and existing shareholders. The funds will be used to execute LGP’s next phase of growth by accelerating sales and marketing efforts in Australia and in offshore markets; expanding cultivation and manufacturing capacity; and providing general working capital.
Having invested A$1 million (£560,000) in LGP’s placing, and following admission to trading on the ASX, FFWD will have a holding of 1,538,462 ordinary shares in LGP.
About Little Green Pharma
Little Green Pharma is a vertically integrated medicinal cannabis business with operations from cultivation and production through to manufacturing and distribution. It has an indoor cultivation facility and manufacturing facility in Western Australia to produce its own-branded range of GMP-grade medicinal cannabis products.
LGP’s growing product range comply with all required Therapeutic Goods Administration regulations and testing requirements. With a growing range of products containing differing ratios of active ingredients, LGP supplies medical-grade cannabis products to Australian and overseas markets. Recently, it has made progress in the establishment of offshore distribution channels including to the UK, Germany, and New Zealand to further strengthen its geographic reach.
LGP achieved record quarterly results for the December 2020 quarter :
· Sales revenue of A$2.45 million (unaudited), up 90 per cent. on previous quarter;
· 12,500+ unit sales in Australia, up 50 per cent. on previous quarter;
· 20 per cent. growth in new patients on the previous quarter – some 9,500 now been prescribed LGP medicines in Australia.
LGP has a strong focus on patient access in the emerging global medicinal cannabis market and is actively engaged in promoting education and outreach programmes, as well as participating in clinical investigations and research projects to develop innovative new delivery systems.
Based on the 11 February 2021 closing price of A$0.85, LGP has a fully diluted market capitalisation of A$142 million, net assets as at 30 June 2020 of A$12.3 million and reported a loss before tax of A$9.3million on revenue of A$2.2million.
Further information about Little Green Pharma can be found at www.littlegreenpharma.com.
FastForward 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.
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