TIDMSEED
Seed Innovations Limited
01 September 2021
Seed Innovations Ltd / AIM: SEED / Sector: Closed End
Investments
1 September 2021
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 the
announcement released on the ASX by its portfolio company, Little
Green Pharma Ltd ('LGP') including its preliminary final report for
year ended 30 June 2021. SEED owns a holding of 7,324,796 ordinary
shares in LGP representing 3.14% of LGP's issued share capital.
Alfredo Pascual, VP of Investment Analysis of SEED, commented:
"I am filled with confidence from this latest financial report from
LGP, showing a positive snapshot of the current financial position
of the business following a year of growth, both organic and by
acquisition, in the Australian and overseas markets.
"LGP has had a meaningful increase in revenue during the period
and has seen gross margins increasing to 82%, with cash at the
period end standing at A$40.2m.
"Alongside the strong financials reported are the reported
growing patient numbers, particularly in Australia where numbers
grew to over 15,000 at the end of the reporting period compared to
4,550 the prior year. This trend is expected to continue with their
expanding international reach, including the new GACP/GMP licensed
medicinal cannabis production facility in Denmark, and distribution
deals agreed for Poland and products already being delivered in
Germany, the United Kingdom, France, New Zealand and Brazil."
The following extract from the announcement is set out without
material changes or adjustments and the announcement in full can be
accessed from the link below this section.
"Review of operations
During the reporting period, LGP Group generated over $7,003,630
in revenue with a profit after tax of $24,603,555 (compared to the
previous year's loss of $9,315,435) predominately reflecting the
impact of the bargain purchase of the Denmark Facility for
accounting purposes.
The Company experienced strong growth in underlying demand in
Australia with the number of patients increasing from 4,550 at 30
June 2020 to over 15,000 at the end of the reporting period.
Progress was also made in overseas markets, with products being
delivered to Germany, the United Kingdom, France, New Zealand and
Brazil. The Company also signed a five -year distribution agreement
with Balancial in Denmark as well as an exclusive distribution
agreement for Poland with a subsidiary of Pelion SA, the largest
operator in the Polish and Lithuanian healthcare sector.
The gross margin continued to improve as a result of the
increasing scale and operating efficiencies, with the gross margin
increasing from 51% to 61% (when excluding changes to the fair
value of biological assets) and increasing from 52% to 82% (when
including changes to the fair value of biological assets).
As at 30 June 2021, the Group had a strong cash position of
$40.2 million.
During the reporting period, the Group's key focus has been on
expanding its Western Australian production operations, acquiring
additional production capacity in the EU, further developing sales
channels into Europe and internationally, and the education of
healthcare professionals in Australia. Meanwhile, the Group's
research and development activities continue to be focussed on the
development of new and innovative drug delivery systems and
products to meet current market demand.
The Group had a number of key achievements during the reporting
period, including:
-- the acquisition of a world-class GACP/GMP licensed medicinal
cannabis production facility in Denmark (EU) capable of producing
in excess of 20 tonnes of biomass per annum (including 12 tonnes
per annum of dried cannabis flower) for an upfront payment of C$10
million plus a deferred payment of C$10 million plus interest due
30 June 2022;
-- the successful fundraising of $54.3 million of capital
pursuant to two placements and a Share Purchase Plan, including a
$15 million investment by Hancock Prospecting;
-- the receipt of binding purchase orders from key distribution
partner Demecan in Germany which, if annualised based on Q4 order,
effectively utilise LGP's entire WA flower production capacity;
-- the entry into new distribution agreements for Denmark and
Poland;
-- the award of one of 4 primary supplier roles to supply
cannabis medicines to the French national medicinal cannabis Pilot
Program;
-- sponsorship of the QUEST Initiative, a large-scale
observational quality of life study into the treatment of chronic
conditions with medicinal cannabis, and successful completion of a
clinical investigation into the efficacy of LGP Classic 10:10
medicinal cannabis oil in treating chronic refractory pain;
-- the entry into a partnership with Health Insurance Fund (HIF)
to support improved access to and affordability of medicinal
cannabis including through the payment of rebates for cannabis
medicines to eligible HIF members;
-- the re-rating of production capacity and grant of a TGA GMP
licence for the Company's Western Australian facility; and
-- the progression of the ARISE drug delivery project through
the first of its three development phases.
Post the reporting period, the Company also acquired 16,000 m2
of land underlying its Western Australian production facilities as
well as two adjoining properties for $6.0 million (with $4.2
million paid in cash and balance in scrip)."
The announcement can be viewed in full on LGP's website via the
following link: PreliminaryFinalReport (littlegreenpharma.com)
-Ends -
For further information on the Company please visit www.seedinnovations.co or contact:
Ed McDermott SEED Innovations Email: info@seedinnovations.co
/ Ltd
Lance de Jersey
James Biddle Beaumont Cornish Tel: +44 (0) 207
/ Limited, 628 3396
Roland Cornish Nomad
----------------------- -----------------------------------
Isabella Pierre Shard Capital Partners T: +44 (0)20 7186
/ LLP 9927
Damon Heath
----------------------- -----------------------------------
Catherine St Brides Partners Email: info@stbridespartners.co.uk
Leftley / Ltd,
Isabel de Financial PR
Salis
----------------------- -----------------------------------
Notes
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.
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