SEED Innovations Ltd (AIM:SEED, OTC:FFRIF) has highlighted results for the period ending 31 December 2022 from its portfolio company, Little Green Pharma Ltd (LGP) showing record quarterly customer cash receipts of $6.0mln.
AIM-quoted SEED, which invests in fast-growing and industry-leading businesses with a focus on the medical cannabis, health, and wellness space, owns 7,324,796 ordinary shares in LGP representing 2.8% of the issued share capital.
During the quarter, LGP generated revenue of $5.3mln (unaudited) and cash receipts of $6.0mln. Cash receipts exceeded revenue due to the collection of outstanding receivables from the previous quarter and the receipt of deposits for product sales delivered in January.
LGP noted strong growth in Danish flower sales in Australia, and highlighted a second exclusive supply agreement with Cannamedical for the SMS strain in Germany.
During the quarter, LGP raised $4.0mln from a successful placement of shares with institutional and professional investors with associated fees of $0.26mln. The company also launched its $2.0mln SPP which closed today, Monday 16 January 2023, at 5pm AWST.
In addition to this, LGP received its annual R&D rebate of $2.3mln which it used to repay its $1.9mln R&D financing. The company also drew down $2.0mln from its equipment finance loan. LGP finished the quarter with cash in the bank of $7.1mln including placement funds.
The full results announcement can be viewed on LGP's website via the following link: https://investor.littlegreenpharma.com/site/pdf/a0c25716-59ba-4cbd-a55c-6a45e7e8a236/Quarterly-Activities-Report-Appendix-4C.pdf
LGP is a global, vertically integrated and geographically diverse medicinal cannabis business with operations from cultivation and production through to manufacturing and distribution.