Gina Rinehart Invests in Little Green Pharma (ASX: LGP)
PUBLISHED
2021-06-22
Content
Little Green Pharma (ASX” LGP), an Australian vertically integrated medicinal cannabis business with operations from cultivation and production through to manufacturing and distribution, has today announced the acquisition of a world class cannabis GACP cultivation and EU-recognised GMP licensed cannabis production facility located in Denmark.
In addition, LGP has confirmed it has received firm commitments to raise A$27.2 million (before costs) from existing investors, including a A$15 million commitment from Hancock Prospecting Pty Ltd (“Hancock Prospecting”) the private investment company of Gina Rinehart. Hancock Prospecting is one of Australia’s largest mining and resources companies and will hold over 10% of the Company following the Placement.
Highlights:
- LGP acquires world-class, fully-operational GACP cultivation and GMP licensed medicinal cannabis asset in Denmark (EU) with capacity to produce in excess of 20 tonnes of biomass per annum including 12 tonnes per annum of dried cannabis flower
- LGP acquired Denmark Facility for C$20 million, with 50% paid at Completion and 50% payable in 12 months’ time
- Acquisition a clear strategic fit with LGP’s existing operations and capabilities, immediately providing LGP with additional cultivation and manufacturing capacity and accelerating its planned capacity expansion by up to two years
- Acquisition consistent with LGP’s EU expansion strategy and provides platform to leverage the Company’s early mover advantage in key EU markets
- Acquisition represents step change for LGP, positioning Company as a leading global pure play medicinal cannabis producer and owner of one of the largest cannabis production assets in Europe
- Company received firm commitments to raise A$27.2 million by way of Placement to existing institutional and sophisticated investors in connection with the Acquisition
- Placement received significant support from Hancock Prospecting, one of Australia’s largest mining and resources companies, who committed A$15 million under the Placement and will hold over 10% of the Company following Placement settlement
- Placement proceeds to be applied to part fund the Acquisition, build out of the Company’s European sales team, and fund capital expenditure works and working capital requirements