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- Little Green Pharma (LGP) is set to pocket $5 million via a private share placement to repay debts and finance future growth
- Under the placement, LGP will issue roughly 27 million new shares to private investors at 18 cents per share — a 5.3 per cent discount to its last closing price
- The funds will primarily be used to repay the balance of a loan note with the Canopy Growth Corporation relating to LGP’s 2021 acquisition of its Denmark facility
- CEO Fleta Solomon says the company is confident it can continue to grow its sales and leverage domestic and international medicinal cannabis market opportunities
- LGP shares are up 13.6 per cent and trading at 21.5 cents at 2:18 pm AEDT
Little Green Pharma (LGP) is set to pocket $5 million via a private share placement to repay debts and finance future growth.
Under the placement, LGP will issue roughly 27 million new shares to private investors at 18 cents per share — a 5.3 per cent discount to its last closing price of 19 cents.
LGP Managing Director Fleta Solomon committed an additional $50,000 to the placement, subject to shareholder approval.
“The proceeds of the placement allow us to fully repay the outstanding loan note with Canopy Growth Corporation in relation to our 2021 Denmark facility acquisition, which both strengthens our balance sheet and removes associated interest expense,” Ms Solomon said.
“In addition, the business will use the balance of the funding to continue delivering on its growth trajectory and focus on achieving cash-flow break-even.”
She said the company was confident that with its current business momentum, it could continue to grow its sales and leverage domestic and international medicinal cannabis market opportunities.
LGP shares were up 13.6 per cent and trading at 21.5 cents at 2:18 pm AEDT.
