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

Seed InnovationsAnnouncement

17/10/2024 12:00

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RNS Number : 6292I  Seed Innovations Limited  17 October 2024

17 October 2024

SEED Innovations Limited

("SEED" or the "Company")

 

Investee Company Update: Little Green Pharma Ltd

 

LGP reports record quarterly revenue and cash receipts

 

SEED Innovations Ltd, the AIM-quoted investment company offering exposure to
disruptive, high-growth, life sciences and technology ventures typically
inaccessible to everyday investors, is pleased to note that its portfolio
company, Little Green Pharma Ltd ('LGP'), has published its quarterly
activities report and Appendix 4C for the period ending 30 September 2024 on
the ASX.

 

The Company owns 7,324,796 ordinary shares in LGP representing 2.43% of LGP's
issued share capital.

 

Commenting on the announcement, Alfredo Pascual, Director of Investment
Research at SEED, said: "We are delighted with LGP's remarkable recent
performance, achieving record quarterly revenue of A$10.2 million and cash
receipts of A$10.8 million-representing impressive growth of 40% and 30%
quarter-over-quarter, respectively. The company is not only outpacing its
competitors but is also generating positive cash flows from its operations.
With minimal long-term debt and an improved cash position at the close of the
quarter, these results highlight the strength of LGP's strategy and business
model. The recent rise in LGP's  share price reflects growing market
recognition of its potential, and we believe there is considerable opportunity
for further growth. We remain confident in LGP's ability to sustain this
momentum."

 

The following excerpt from the announcement, which was released on the ASX, is
set out without any material changes.

 

Quarterly Activities Report and Appendix 4C

 

Little Green Pharma Ltd (ASX: LGP, "LGP" or the "Company") is pleased to
provide its activities report and Appendix 4C for the quarter ending 30
September 2024.

 

Highlights

·    Revenue of $10.2 million (unaudited), up 40% on prior quarter.

·    Cash receipts of $10.8 million, up over 30% on prior quarter.

·    Net operating cash inflow of over $1.0 million resulting in cashflow
positive quarter of $0.6 million.

·    Cost savings of $0.5 million per year expected from subcontracting
Australian cultivation operations.

·    Cash in bank of $4.8 million up from $4.3 million.

·    Over 30% increase in flower sales in Australia and a 35% increase in
oil sales.

·    Over 80% increase in European sales against prior quarter: 60%
increase in flower sales into Europe with over 110% increase in French oil
sales.

·    Robust growth across brands:

o  CherryCo sales up 50% on prior quarter.

o  LGP brand sales up nearly 30% on prior quarter including sales into
France, the UK and Switzerland.

o  White label sales up 35% on prior quarter including sales into Australia,
Germany and the UK.

o  Introduction of new Indicare brand in September 2024.

 

The announcement in full can be accessed from the following link:
chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.investlittlegreenpharma.com/site/showdownloaddoc.aspx?AnnounceGuid=0a5c8d62-8ea1-41ae-a74d-9d9018e3e1e1

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation No. 596/2014, which forms part of United Kingdom domestic law by
virtue of the European Union (Withdrawal) Act 2018 (as amended).

- 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
 Ana Ribeiro         St Brides Partners Ltd,          E: seed@stbridespartners.co.uk

 Isabel de Salis     Financial PR

 

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.

 

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.

 

Nominated Adviser

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

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