- Little Green Pharma (LGP) posts record cash receipts of $6 million for the December quarter, up 35 per cent on prior quarter
- Unaudited revenues reached $5.3 million for the quarter due to a rise in Australian flower sales and Australian oil sales
- LGP closed a $4 million placement and launched its $2 million share purchase plan (SPP) to support sales growth in Europe and Australia
- The company is now weighing up funding and partnering options to progress its SleepWellStudy and Schedule 3 product registration
- Company shares have ended the day trading 5.71 per cent higher to 18.5 cents
Little Green Pharma (LGP) achieved record quarterly customer cash receipts of $6 million for the December quarter, a rise of 35 per cent on the last quarter.
The global medicinal cannabis business posted rises in unaudited revenues of $5.3 million for the quarter, up from $4.9 million in the prior quarter and up $3.7 million on the prior corresponding period (December quarter 2021).
LGP’s rise was benefited by a 20 per cent increase in Australian flower sales from the September quarter, along with a 10 per cent increase in Australian oil sales.
The company’s financial results were finalised despite missing the cut-off for the delivery of a $400,000 shipment to Demecan, which went through in early January 2023.
Ultimately, flower sales to Demecan were down for the quarter as the cut-off was missed, as LGP only received its first shipment of Danish flower strains in late November. However, if delivered on time, the company would have achieved a 65 per cent sales increase on the previous quarter.
In November 2022, the company also closed its $4 million placement to investors and launched its $2 million share purchase plan (SPP).
The SPP, set to close Monday January 16, 2023 at 5:00 pm AWST, allowed shareholders to buy up to $30,000 of LGP ordinary shares at 20 cents per share, with a free-attaching option with an exercise price of 25 cents
The proceeds will bolster the company’s sales efforts in Europe and Australia, while also strengthening general working capital and other costs.
LGP’s ongoing efforts saw it recognised at the Australian 60th National Export Awards in November 2022 within the International Health category.
The company’s quarter was also highlighted having secured Human Research Ethics Approval for its phase three clinical trial (SleepWellStudy), using its Australian Schedule 3 CBD product development to improve sleep quality and reduce stress.
After ending LGP’s contract with Four 20 Pharma in December 2022, the company moved quickly to secure a new distribution partner for its SMS strain in Germany, locking away Cannamedical Pharma GmbH.
The agreement is said to be worth $4.7 million.
LGP’s cash in bank at the end of the quarter was $7.1 million, including placement funds.
Company shares ended the day trading 5.71 per cent higher to 18.5 cents.