Seed Innovations (SEED: ) said its portfolio company, Little Green Pharma, has delivered record revenue and cash receipts for the quarterly period ended 30 December 2021.
SEED owns a holding of 7,324,796 ordinary shares in Little Green Pharma, which specialises in Australian-cultivated, medical cannabis, representing 3.1% of LGP’s issued share capital.
Alfredo Pascual, Vice President of Investment Analysis of SEED Innovations, formerly Fast Forward Innovations, commented: “It is very encouraging to see such a positive quarter from Little Green Pharma, seeing increasing revenue and record cash receipts of A$4.9 million.”
Over the quarter, Little Green Pharma achieved record quarterly revenue and cash-receipts, with around $3.7 million revenue (unaudited) and $4.9 million in cash receipts, respectively.
LGP’s EU distribution platform now has access to over 60% of the EU population while the company also received registration of its first locally produced cannabis medicine in Denmark. The company said it has witnessed encouraging first sales so far throughout January 2022.
Over the quarter, LGP signed agreements for exclusive distribution partnerships in Germany and Greece, including for medicines produced from the company’s Danish Facility which has prequalified for the Italian government’s medicinal cannabis tender and submitted its first bid.
As a result of its performance over the quarter, Little Green Pharma informed investors that it believes the business is in a strong position to capitalise on the French market as it continues to be the preferred primary supplier into the French trial with less than a year until completion.
Over the period, LGP received unconditional approval of a $5.8 million financing facility from National Australia Bank as well as a research and development rebate of $1.9m. As at 31 December 2021, the company held a strong balance sheet with $25.2 million cash at bank.
“We are pleased to see the recent distribution agreements throughout Europe and Denmark’s first locally produced cannabis medicine registration. With a strong cash balance of over A$25 million and a $5.8m financing facility from National Australia Bank, SEED are looking forward to a positive 2022 with further progress and news flow from the LGP team,” added Pascaul.
SEED Innovations is an AIM quoted investment firm focused primarily on disruptive high growth life sciences and technology businesses particularly in the medical cannabis arena.
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