Little Green Pharma will bank $9 million a year following its most significant off-take agreement with Germany’s first independent and vertically integrated medical cannabis startup.
Demecan will purchase 450 kilograms of high-quality THC flower strains with an eye on tripling the yearly order of medicinal from its facility in Denmark’s Nordic nation.
Demecan managing director Philipp Goebel said LGP’s flower products were right at the top of the market.
“It marks the beginning of a highly mutually beneficial partnership,” he said.
LGP chief executive Fleta Solomon said the agreement is a significant turning point for her company, Australia’s first locally-grown medical cannabis producer.
“I hope this is the first in what we hope is a suite of high-volume purchase agreements underpinning the facility’s arc towards profitability and full production,” she said.
The company will continue engaging in education, clinical investigation, and delivery system research while moving on to additional high-volume purchase agreements.
LGP’s Australian Stock Exchange-listed share price was trading at 45c today (12: 25 pm UTC+ 8 hours).