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Little Green Pharma To Accelerate Growth Strategy With Acquisition of World-Class Production and Manufacturing Facility in Denmark


News provided by

Little Green Pharma Ltd

22 Jun, 2021, 02:00 GMT

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PERTH, Australia, June 22, 2021 /PRNewswire/ -- Little Green Pharma Ltd (ASX: LGP) has acquired a world-class, fully-operational, GMP medicinal cannabis cultivation and manufacturing facility in Denmark from Canopy Growth Corporation (TSX:WEED, NASDAQ: CGC).

The facility, located in Northern Odense, has the capacity to produce in excess of 12 tonnes per annum of finished flower and provides LGP with much-needed product supply from its current inventory of ~1 tonne of medicinal cannabis flower products.

Previously operating as a production site, LGP hopes to broaden the facility's service offering by building out a sales and marketing division and empowering the facility to engage with EU and global markets. LGP expects that its established brand and distribution channels and EU cannabis markets know-how will help generate additional valuable sales opportunities for the facility. The LGP Group will also share best-practice cultivation, manufacturing and pharmaceutical insights and expertise between its global assets.

The LGP Group plans to immediately focus on delivering products in Australia and Germany as it grows its portfolio of export destinations over time. The facility is also well advanced along the medicine registration process for its first medicinal cannabis products for the Danish market, with current plans to release in early 2022.

LGP's Managing Director Ms. Fleta Solomon said "The opportunity to acquire this facility came up and it was clear at the outset this was a compelling strategic move for LGP.

"We have a moment in the market now to capitalise on the brand equity LGP has built with our existing patients in Germany, the UK, and France as well as Australia, and the immediate access to medical-grade product on the scale we will now have provides us the opportunity to accelerate our growth strategy.

"At Little Green Pharma our mission is to develop and supply cannabis medicines to patients that improve their quality of life. We are driven by patient outcomes and value every person's contribution to producing the final medicine, from those nurturing the mother plants, to those packing the final product.

"We have been particularly impressed with the levels of expertise, professionalism and engagement from all Danish facility staff throughout the acquisition process and look forward to meeting the rest over the coming weeks."

"The acquisition accelerates our ability to provide medicinal cannabis to Danish, Australian, and other patients across Europe. We want to work together to do extraordinary things for patients around the world and this is a wonderful next step."

With this purchase, existing facility team members will have continuity of employment resulting in no job losses and LGP will become a significant employer in Odense. Further, LGP looks forward to expanding its local workforce as it grows its production output over time.

The C$20 million acquisition of the 21,500 m2 cultivation and 4,000 m2 GMP manufacturing facility positions LGP as the leading Australian medicinal cannabis producer and owner of one of the largest and highest-quality cannabis production facilities in Europe.

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, with indoor cultivation facility and manufacturing facility in Western Australia.

Little Green Pharma products comply with all required 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 and overseas markets.

Related Links

https://www.littlegreenpharma.com

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