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

Seed InnovationsAnnouncement

05/02/2025 10:45

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RNS Number : 0370W  Seed Innovations Limited  05 February 2025

Seed Innovations Ltd / AIM: SEED / Sector: Closed End Investments

5 February 2025

SEED Innovations Limited

("SEED" or the "Company")

 

Investee Company Update: Little Green Pharma Ltd

 

LGP completes acquisition of medicinal cannabis distribution business Health
House

 

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 announce that its portfolio
company, Little Green Pharma Ltd ("LGP"), is today (5 February 2025) due to
complete the acquisition of HHI (Australia) Pty Ltd ("Health House"), the
owner of Health House, a leading medicinal cannabis distribution business in
Australia.

 

SEED holds 7,324,796 ordinary shares in LGP, representing approximately 2.4%
of LGP's issued share capital.

 

Commenting on LGP's acquisition, Alfredo Pascual, Director of Investment
Research at SEED, said: "LGP's acquisition of Health House strengthens its
position in the rapidly growing Australian medicinal cannabis market by
enhancing its distribution capabilities and reinforcing its vertical
integration strategy. This move comes amid ongoing industry consolidation and
allows LGP to secure a key distribution partner at an attractive valuation,
demonstrating its ability to execute disciplined, value-accretive growth. We
are confident that this acquisition will create long-term value for both LGP
and SEED shareholders."

 

Key Highlights:

·    LGP is completing the acquisition of Health House today (5 February
2025), marking a significant step in its strategic growth.

·    This acquisition extends LGP's vertical integration, aligning with
its long-term acquisition strategy amid the ongoing restructuring of the
Australian medicinal cannabis industry.

·    Health House, a longtime distribution partner of LGP, generates
around $7.5 million (unaudited) in annual revenue and has achieved cashflow
breakeven.

·    The deal involves a net cash outlay of approximately $375,000, with
LGP also assuming Health House's estimated $350,000 net liability (excluding
existing payables owed to LGP).

·    LGP sees the acquisition as offering exceptional value, especially
considering that Health House's parent company, Melodiol Global Health (in
liquidation), had previously listed the business for sale at $10.9 million in
September 2024.

 

LGP's full announcement can be accessed here:

https://investlittlegreenpharma.com/site/investor-centre/asx-announcements
(https://investlittlegreenpharma.com/site/investor-centre/asx-announcements)

 

- Ends -

 

For further information on the Company please visit: www.seedinnovations.co
(http://www.seedinnovations.co/)  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 Ltd is an AIM quoted investment company offering exposure to
disruptive, high-growth, life sciences and technology ventures typically
inaccessible to everyday investors. Its strategy focuses on identifying
early-stage opportunities with upcoming investment catalysts, alongside more
mature investments providing near-term liquidity. With a portfolio of such
investments and cash reserves, the Company is agile and poised to capitalise
swiftly on new investment opportunities.

 

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 Statement

Beaumont Cornish Limited ("Beaumont Cornish"), is the Company's Nominated
Adviser and is authorised and regulated in the United Kingdom by the Financial
Conduct Authority. 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 the
announcement or any matter referred to in it.

 

 

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