Seed Innovations Ltd hailed the performance of 3.1%-owned portfolio company Little Green Pharma Ltd (ASX:LGP) (LGP), which increased revenue 30% to AU$3.2mln and cash receipts 100% to AU$3mln in the first quarter of 2022.
This was despite Australia-based LGP’s international cannabis flower sales being impacted by the commissioning of its upgraded GMP facility, but management expects sales momentum to resume in line with previous quarters.
Other developments in Australia during the quarter included 18% new patient growth rate in the launch of two new portals in the country connecting eligible patients with prescribers for direct online delivery.
During the quarter LGP signed its largest offtake agreement to date with long-standing distribution partner Demecan in Germany, representing an annual revenue opportunity of around AU$9mln (£5.2mln) after ramping up its Danish facility.
Investment in the LGP Denmark facility and local genetics program results in the doubling of the yield per plant without increased cultivation costs, LGP said.
Elsewhere, a first tender was won in Italy, with an order from the national government for a shipment of EU GMP medicinal cannabis flower from the Danish facility.
“The tender represents the only route for cannabis flower products into Italy and imposes some of the highest quality standards globally,” said LGP, which “anticipates its success in the tender will help position it well for any upcoming tenders, one of which is expected in the near term for a significantly larger volume”.
LGP announced the intention to demerge its Psychedelics business during the quarter into a separate unlisted entity named Reset Mind Sciences Ltd, which is to be implemented via distribution of 100% of the company’s ownership to eligible LGP shareholders.
With the process expected to be completed in the September quarter, the company said it has made progress with the prospectus and contractual arrangements, while also receiving a licence from the West Australian Department of Health authorising Reset to supply psilocybin to appropriately licensed recipients in anticipation of its West Australian-based clinical trial into psilocybin assisted psychotherapy.
LGP had AU$20.1mln of cash in the bank at end of March.