- Little Green Pharma (LGP) enters a 2.5-year take-or-pay contract with Four 20 Pharma for the exclusive supply of its high-THC SMS strain to Germany
- Established in 2018, Four 20 Pharma is a GMP-licenced German manufacturer, wholesaler and importer of medicinal cannabis
- The contract has a minimum take-or-payment commitment of at least $7.5 million over a 30-month period and includes a fee to help strain development costs
- Four 20 Pharma must purchase minimum quantities of the product per quarter with first supply expected late next quarter or early the following quarter
- Little Green Pharma is up 9.52 per cent on the market with shares trading at 34.5 cents at 12:42 pm AEST
Little Green Pharma (LGP) has entered a 2.5-year take-or-pay contract with Four 20 Pharma for the exclusive supply of its high-THC SMS strain to Germany.
Established in 2018, Four 20 Pharma is a GMP-licenced German manufacturer, wholesaler and importer of medicinal cannabis.
Since its establishment, the company has made a name as one of the biggest players in the medicinal cannabis market in Germany.
Its growth has been supported by the success of its 420 NATURAL brand which is one of the highest-selling medicinal cannabis brands in Germany.
The contract has a minimum take-or-payment commitment of at least $7.5 million over a 30-month period and includes a fee to help strain development costs.
Four 20 Pharma must purchase minimum quantities of the product per quarter and if it fails to do so must pay liquidated damages equal to the purchase price if make-up quantities are not purchased the following quarter.
First supply is expected late next quarter or early the following quarter.
“We are very excited by our new SMS strain as well as the opportunity to be partnering with Four 20 Pharma, one of the largest medicinal cannabis operators in Germany and with a highly successful track record of supplying its 420 Natural brand cannabis products into the German market,” CEO Fleta Solomon said.
“The agreement represents another significant milestone in LGP’s continued growth of its Danish Facility, as well as an exciting development in LGP’s supply processes that promises to dramatically shorten LGP’s supply timelines for future key strains.”
Little Green Pharma was up 9.52 per cent on the market with shares trading at 34.5 cents at 12:42 pm AEST.