SEED Innovations Ltd (AIM:SEED) has noted the results from portfolio company Little Green Pharma Ltd (ASX:LGP) for the year ended 30 June 2021.
Alfredo Pascual, VP of Investment Analysis of SEED, said: "I am filled with confidence from this latest financial report from LGP, showing a positive snapshot of the current financial position of the business following a year of growth, both organic and by acquisition, in the Australian and overseas markets.
"LGP has had a meaningful increase in revenue during the period and has seen gross margins increasing to 82%, with cash at the period end standing at A$40.2m.
"Alongside the strong financials reported are the reported growing patient numbers, particularly in Australia where numbers grew to over 15,000 at the end of the reporting period compared to 4,550 the prior year.
“This trend is expected to continue with their expanding international reach, including the new GACP/GMP licensed medicinal cannabis production facility in Denmark, and distribution deals agreed for Poland and products already being delivered in Germany, the United Kingdom, France, New Zealand and Brazil."
LGP Group generated A$7mln in revenue and a profit after tax of A$24.6mln (loss of A$9.3mln) predominately reflecting the impact of the bargain purchase of the Denmark Facility for accounting purposes.
As of 30 June 2021, LGP had a cash position of A$40.2mln.
SEED owns 7,324,796 ordinary shares in LGP representing 3.14% of its issued share capital.