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Little Green Pharma (ASX:LGP) secures distribution agreement for Polish market

Health Care
ASX:LGP      MCAP $37.72M
17 June 2021 16:00 (AEST)
Little Green Pharma (ASX:LGP) - Managing Director, Fleta Solomon

Source: AUManufacturing

Little Green Pharma (LGP) has inked a five-year agreement to distribute LGP’s cannabis medicines into Poland.

Under the deal, Little Green Pharma is set to supply Pelion SA subsidiary Medezin with its medicinal cannabis oil and high THC flower products for distribution into the country.

Pelion SA is regarded as the largest operator in the Polish and Lithuanian healthcare sector and touts an annual revenue of zł10 billion (approximately A$3.5 billion).

Medezin will hold exclusive rights to distribute LGP medicinal cannabis products — subject to meeting certain sales hurdles — and is targeting sales of at least 20 per cent of the Polish medicinal cannabis oil market and at least 10 per cent of the Polish high-THC medicinal cannabis flower market.

According to LGP, the financial value of the agreement will be subject to final order numbers under the agreement, which in turn are subject to the minimum order requirement.

Broadly, LGP said the distribution partnership represents another “key plank” in expanding its European sales platform.

LGP Managing Director Fleta Solomon said the company was pleased to be partnering with Medezin.

“Our distribution agreement with Medezin reflects LGP’s strategic ambition to
acquire and maintain a substantial share of the Total Addressable Market in
each jurisdiction we supply,” she said.

Little Green Pharma shares closed today’s session up 2.33 per cent to trade at 66 cents.

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