Medical cannabis producer and manufacturer Little Green Pharma Ltd (ASX:LGP) has secured firm commitments to raise $22 million via placement of shares to new and existing institutional and high net worth investors, the company announced today.
Under the Placement, LGP will issue 34 million new fully paid ordinary shares at an issue price of $0.65 per New Share. To raise up to $5 million, the company will offer a Share Purchase Plan to eligible shareholders.
LGP revealed that proceeds of the Placement will be directed towards executing its growth strategy which includes bolstering sales and marketing both in domestic and offshore markets, improving manufacturing capacity, and providing general working capital.
LGP’s successful Placement adds to a number of milestones achieved under the Company’s growth strategy, including:
- first commercial exports to the UK;
- first commercial export of oil and flower medicines to Germany;
- winning a French government tender for a national trial of cannabis medicines; and
- new product launches
On January 28, LGP was appointed as a primary medicinal cannabis oil manufacturer for Intsel Chimes, a leading French pharmaceutical distributor.
Commenting on the Placement, LGH Managing Director Fieta Solomon said: “We’re highly encouraged by the strong support shown by new and existing shareholders for Little Green Pharma.
“Little Green Pharma has gone from strength to strength, and has achieved immense growth in the last year, most recently setting new records for quarterly revenue, unit sales, and patient numbers.
“We expect the next 12 months to be very exciting for the Company and look forward to reporting on our continued success.”