Join our daily newsletter At The Bell to receive exclusive market insights
- Medicinal cannabis manufacture Little Green Pharma (LGP) has received a firm purchase order and acquired new land for expansion
- The company agreed to purchase two properties near its cultivation and manufacturing facilities in South West Western Australia
- Under the agreement, LGP will purchase the properties for between $5.5 million and $7.5 million in a mixed cash-and-scrip deal
- LGP is planning to expand its current capacity by the second half of this year
- Additionally, the company has received a firm purchase order from German pharmaceutical wholesaler Deutsche Medizinalcannabis (DEMECAN)
- On the market today, LGP is down 1.43 per cent and is trading at 69 cents per share
Medicinal cannabis manufacture Little Green Pharma (LGP) has received a firm purchase order and acquired new land for expansion.
New land
The medicinal cannabis manufacture has agreed to purchase two properties near its cultivation and manufacturing facilities in southwest Western Australia.
Under the agreement, LGP will purchase the land in cash and script payment of between $5.5 million and $7.5 million. The new land covers around 16,000 square metres.
LGP says the new purchase will help service the higher-than-expected international and domestic market demand for LGP cannabis flower medicines.
Through the acquisition, the company can double its indoor cultivation capacity by 3000 square metres within its existing high-security fencing line.
LGP expects to complete the expansion in the second half of this year.
Purchase order
Alongside news of the expansion, the company has received a firm purchase order from German pharmaceutical wholesaler Deutsche Medizinalcannabis (DEMECAN).
The DEMECAN purchase order includes 9000 units of cannabis flower medicines to be delivered in the second quarter of the current 2021 year.
This follows the first commercial shipment of cannabis follower to Germany in February.
The companies have a medicinal cannabis purchase agreement, through which LGP can sell and export up to 1000 kilograms of its dried cannabis flower to DEMECAN each year.
On the market today, LGP is down 1.43 per cent and is trading at 69 cents per share at 12:56 pm AEDT.
