Little Green Pharma signs UK medicinal cannabis supply agreement
- Under the agreement, the parties grant exclusivity for the supply of LGP 10:10 Classic Oil
- Revenue is expected to hit $1.44 million
- The startup was listed in 2020
Australian medicinal cannabis company Little Green Pharma has signed a three-year agreement for the distribution of LGP-branded oils and flower products to Sana Life Sciences across the UK and Crown dependencies.
Under the agreement, the parties grant mutual exclusivity in the territory for the supply or distribution of LGP 10:10 Classic Oil and medicinal cannabis oils with the same ratio.
The agreement also entails Sana’s right of first offer in relation to future distribution of LGP products.
LGP estimates a potential revenue opportunity of $1.44 million per annum in their third year from the distribution of their 10:10 oil.
Established in 2016 as a privately-owned company in Perth, Western Australia, LGP has been supplying Australian patients with naturally grown medicinal cannabis products since August 2018.
In 2020, the startup made its debut on the ASX and earlier this year demerged the ownership of the Reset Mind Sciences division.
LGP’s growth strategy is initially focused on continued expansion in Australia, followed by expansion into European and other international markets.
The agreement represents a key step in LGP’s strategy of selling its very own LGP-branded sales in the UK and EU, while developing and supplying client-specific strains for clients across Europe.
LGP chief executive officer Fleta Solomon says this agreement is a key indicator to shareholders that the company is moving in the right direction.
“Shareholders can be sure that Little Green Pharma is making great progress towards its international growth strategy, meaningful distribution agreements are crucial for Little Green Pharma’s first mover advantage and brand equity in emerging markets.”
– Fleta Solomon
Fleta is also hopeful that this agreement will help improve LGP’s vision.
“Little Green Pharma now has all the building blocks in place to grow and manufacture high quality pharmaceutical grade cannabis medicines in Australia and Denmark (Europe),” she concluded.
Original article date: 8 May 2022