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

Seed InnovationsAnnouncement

24/03/2023 11:15

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RNS Number : 1800U  Seed Innovations Limited  24 March 2023

24 March 2023

 

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'). This follows the
announcement by LGP of 22 March 2023.

The Company owns 7,324,796 ordinary shares in LGP representing 2.7% of LGP's
issued share capital.  The Company did not participate in the fundraise.

The following extract from the announcement is set out without material
changes or adjustments and the announcement in full can be accessed from the
following link:   https://investor.littlegreenpharma.com/site/content/
(https://investor.littlegreenpharma.com/site/content/)

Start of Little Green Pharma Ltd announcement:

24 March 2023

 

Successful completion of $5 million placement

Highlights:

·    Firm commitments received for $5 million Placement

·    Placement oversubscribed with support from new and existing
institutional and sophisticated investors

·    Funds to be used to repay balance of loan note with Canopy Growth
Corporation and for working capital and costs of offer

·    Strengthens the balance sheet and supports Company's pathway to
break-even and significant growth at scale

 

Little Green Pharma Ltd (ASX: LGP, "LGP" or the "Company") is pleased to
announce it has secured firm commitments for a $5 million placement
("Placement") from new and existing institutional and sophisticated investors.
The Company's Managing Director also committed $50,000 to the Placement
subject to shareholder approval at an Extraordinary General Meeting to be
announced in due course.

Commenting on the capital raise, Chief Executive Officer of Little Green
Pharma, Fleta Solomon, said: "This a very exciting outcome for the Company.
The proceeds of the Placement allow us to fully repay the outstanding Loan
Note with Canopy Growth Corporation in relation to our 2021 Denmark facility
acquisition, which both strengthens our balance sheet and removes associated
interest expenses. In addition, the business will use the balance of the
funding to continue delivering on its growth trajectory and focus on achieving
cash-flow break-even. We are confident the business's current momentum will
allow it to continue growing sales and leveraging domestic and international
medicinal cannabis market opportunities."

Under the Placement, the Company will issue new fully paid ordinary shares
("New Shares") at $0.18 per share. The Placement offer price represents a 5.3%
discount to the last price close on 21 March 2023 ($0.19 per share).
27,000,771 New Shares will be issued under the Company's available ASX Listing
Rule 7.1A placement capacity, with the remaining 777,007 New Shares issued
under the Company's ASX Listing Rule 7.1 capacity. Settlement of the New
Shares is expected to occur on Thursday 30 March 2023 with all New Shares
ranking equally with the Company's existing ordinary shares on issue.

Indicative fundraising timetable

Below is the current indicative timetable for settlement of the Placement:

 Event                                                             Date
 Announcement of completion of the Placement, trading halt lifted  Friday, 24 March 2023
 Settlement of New Shares                                          Thursday 30 March 2023
 Quotation and commencement of trading of New Shares               Friday, 31 March 2023

 

Use of Funds

The Company will use the funds from the Placement to repay the balance of the
Canopy Loan Note and for working capital and costs of the offer. LGP continues
its strong focus on targeting a break-even position, including by executing
against its existing and proposed new supply agreements into Europe and
driving increased sales in Australia, while continuing to identify ways to
right-size and reduce costs in its operations. The removal of the Canopy Loan
Note also refreshes the Company's balance sheet for future growth.

 

End of Little Green Pharma Ltd announcement

 

- Ends -

 

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

  Ed McDermott      SEED Innovations Ltd         E: 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

 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 30 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 (http://www.littlegreenpharma.com/)

 

 

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