AUSTRALIA - Little Green Pharma Ltd (LGP), a global medicinal cannabis company, has signed a binding letter of intent to acquire Health House Australia Pty Ltd for AUD $1.25 million in cash. This move is part of LGP's strategy to expand its distribution capabilities and capitalize on current market conditions by acquiring sustainable businesses within the sector.
Health House, a nationwide distributor of medical cannabis in Australia, has been a distribution partner for LGP since 2019. The acquisition is expected to bring significant operational synergies and strengthen LGP's vertical integration, enhancing its ability to supply medical-grade cannabis products to Australian, European, and overseas markets. Health House is currently cashflow breakeven and generates approximately $7.5 million in annual revenue.
The acquisition aligns with LGP's focus on patient access and its commitment to education, outreach programs, and participation in clinical research. Little Green Pharma operates two global production sites, one in Denmark and another in Western Australia, with compliance to all required regulations and testing requirements by the Danish Medicines Agency and Therapeutic Goods Administration.
SEED Innovations Ltd, an AIM-quoted investment company with a stake in LGP, noted the potential benefits of the acquisition. SEED owns approximately 2.4% of LGP's issued share capital, equating to 7,324,796 ordinary shares.
The information in this article is based on a press release statement and does not constitute an endorsement of LGP's products or services. The completion of the acquisition remains subject to the final terms being agreed upon and other customary closing conditions.
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