REG - Seed Innovations Ltd - Investee Company Update: Little Green Pharma Ltd

Seed InnovationsAnnouncement

16/01/2023 14:30

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RNS Number : 8747M  Seed Innovations Limited  16 January 2023

16 January 2022

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 an announcement released on the ASX by its
portfolio company, Little Green Pharma Ltd ('LGP'), regarding its quarterly
results for the period ending 31 December 2022. The Company owns 7,324,796
ordinary shares in LGP representing 2.8% of LGP's issued share capital.

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.

Highlights:

·      Record quarterly customer cash receipts of $6.0 million

·      Strong growth in LGP Danish flower sales in Australia

·      Successful $4.0 million placement, with applications up to $2.0
million SPP closing today, Monday 16 January 2023

·      Ethics approval granted for Schedule 3 CBD product clinical trial

·      Second exclusive supply agreement with Cannamedical for SMS
strain in Germany

·      Wins Australian 60th National Export Awards (International Health
category)

·      Cash in bank at end of quarter of $7.1 million including
placement funds

Quarterly financial highlights

During the quarter, the Company generated revenue of $5.3 million (unaudited)
and cash receipts of $6.0 million. Cash receipts exceeded revenue due to the
collection of outstanding receivables from the previous quarter and the
receipt of deposits for product sales delivered in January.

The key cash flows during the quarter included:

 • Customer receipts of $6.0 million

• R&D rebate of $2.3 million

• Capital raise of $4.0 million and associated fees of $0.26 million

• Repayment of R&D financing of $1.9 million

• Borrowings of $2.0 million

During the quarter the Company raised $4.0 million pursuant to a successful
placement with institutional and professional investors with associated fees
of $0.26 million. The Company also launched its $2.0 million SPP which is
closing today, Monday 16 January 2023 at 5pm (AWST). In addition to this, the
Company received its annual R&D rebate of $2.3 million which it used to
repay its $1.9 million R&D financing. The Company also drew down $2.0
million from its equipment finance loan. Related party transactions during the
quarter comprised $0.2 million in remuneration and allowances paid to the
directors of the Company. In early January 2023, the Company paid C$0.5
million of its C$3.6 million plus interest loan to Canopy Growth Corporation
arising from its purchase of the Company's Danish Facility in 2021. The
Company continues to discuss potential extension terms for the balance of the
loan. The Company finished the quarter with cash in bank of $7.1 million
including placement funds.

The announcement can be viewed in full on LGP's website via the following
link:

https://investor.littlegreenpharma.com/site/pdf/a0c25716-59ba-4cbd-a55c-6a45e7e8a236/Quarterly-Activities-Report-Appendix-4C.pdf
(https://investor.littlegreenpharma.com/site/pdf/a0c25716-59ba-4cbd-a55c-6a45e7e8a236/Quarterly-Activities-Report-Appendix-4C.pdf)

- Ends -

 

For further information on the Company please
visit:  www.seedinnovations.com (http://www.seedinnovations.com/)    or
contact:

 

 Ed McDermott       SEED Innovations Ltd         E:  info@seedinnovations.co (mailto:info@seedinnovations.co)

 Lance de Jersey
 James Biddle       Beaumont Cornish Limited,    T: (0)20 7628 3396

 Roland Cornish     Nomad
 Isabella Pierre    Shard Capital Partners LLP   T: (0)20 7186 9927

 Damon Heath        Broker
 Catherine Leftley  St Brides Partners Ltd,      E:  info@stbridespartners.co.uk (mailto:info@stbridespartners.co.uk)

 Isabelle Morris    Financial PR

 Max Bennett

 

Notes

Seed Innovations Ltd

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.

About Little Green Pharma

Little Green Pharma is a global, vertically integrated and geographically
diverse medicinal cannabis business with operations from cultivation and
production through to manufacturing and distribution. The Company has two
global production sites for the manufacture of its own-branded and white-label
ranges of GMP-grade medicinal cannabis products, being a 21,500m2 cultivation
and 4,000m2 GMP manufacturing facility capable of producing over 20 tonnes of
medicinal cannabis biomass per annum located in Denmark (EU) and an indoor
cultivation and manufacturing facility located in Western Australia capable of
producing ~3 tonnes of medicinal cannabis biomass per annum. Little Green
Pharma products comply with all required Danish Medicines Agency and
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,
European and overseas markets. The Company has a strong focus on patient
access in the emerging global medicinal cannabis market and is actively
engaged in promoting education and outreach programs, as well as participating
in clinical investigations and research projects to develop innovative new
delivery systems. For more information about Little Green Pharma go to:
www.littlegreenpharma.com

 

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