Highlights
- Little Green Pharma will commence trading on the ASX on Thursday 20 February 2020 under the ticker code ‘ASX.LGP
- Little Green Pharma raised the maximum subscription amount of $10 million in an oversubscribed IPO
Funds raised will be used to accelerate Little Green Pharma’s growth strategy, including funding the Company’s own manufacturing site, research and development, and sales and marketing - Since its first product launch in 2018, Little Green Pharma has dispensed more than 7,600 bottles to more than 2,360 patients across Australia
- Little Green Pharma is strongly positioned to capture value from opportunities relating to the emerging medicinal cannabis industry in Australia and internationally
Little Green Pharma Ltd (ASX: LGP) (“LGP” or the “Company”) is pleased to announce its shares will commence trading on the Australian Securities Exchange (“ASX”) tomorrow at 1pm (AEDT).
LGP closed an oversubscribed initial public offering (“IPO”) on 29 January 2020 to raise $10 million, which was the maximum subscription amount under the prospectus. The IPO received strong support from new, institutional and existing shareholders.
LGP has issued approximately 22.2 million new fully paid ordinary shares at $0.45 and will have a market capitalisation of approximately $60 million upon listing. LGP shares will trade under the ticker ‘ASX.LGP’.
LGP, together with its exclusive manufacturing partner and via its distribution arrangements, operates a vertically integrated medicinal cannabis business comprising cultivation, production, research and development, manufacturing, and distribution of medicinal cannabis products.
LGP operates a cultivation facility with a current production capacity of approximately 15,000 bottles of medicinal cannabis oil per annum. LGP is increasing this capacity to 110,000 bottles of LGP medicinal cannabis oil per annum.
The Company produces a product range of oil-based oral medicinal cannabis products and was a pioneer in the Australian medicinal cannabis industry, with the sale of the first locally grown and produced medicinal cannabis products in August 2018. Since the first product launch the Company has dispensed more than 7,600 bottles to more than 2,360 patients across Australia.
LGP also plans to continue driving growth both domestically and offshore, particularly into Europe where it has received its first purchase order of 2,400 bottles from Germany.
Commenting on the IPO, LGP Managing Director Fleta Solomon said:
“The listing of LGP on the ASX is a significant achievement, and the Board would like to take this opportunity to thank patients, investors and other stakeholders for their support.
“The enormous support received for the IPO is extremely pleasing and confirms the interest in our Company and in medicinal cannabis, which has the potential to transform the lives of patients throughout the world.
“With this funding we are now in a strong position to accelerate our growth strategy to capture value in a dynamic global market as well as provide an opportunity for incoming investors to share in our exciting future.”
Funds raised will be applied to accelerate LGP’s growth strategy; construct its own manufacturing site; undertake sales and marketing activities supporting the Company’s international expansion and export activities; conduct research and development activities in respect to its medicinal cannabis products and delivery technologies; offer training and education relating to medicinal cannabis, LGP and its products; implement new systems; and provide working capital.
Canaccord Genuity (Australia) Limited acted as Lead Manager to the IPO.
ENDS
For interviews, export updates, clinical study protocols and patient case studies please contact:
David Tasker, Chapter One Advisors
E: dtasker@chapteroneadvisors.com.au
M: +61 433 112 936
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