Continuing to build its European footprint, Little Green Pharma has shipped its new high THC strain medicinal cannabis flower product to Illios Sante in Germany as the first delivery of a massive two-year supply deal with a minimum value of approximately $AUD2.3 million dollars.
The deal was first signed in July of last year, making this first shipment the culmination of a nine-month engagement process. The rest of the deal will see Ilios Santé purchase minimum annual qualities of high-THC white-label products developed by LGP, with ~80 per cent of the minimum quantities falling into the second year of the agreement.
The shipment follows up on a previous delivery of 30kg of high-THC flower to German cannabis giant Demecan in February, alongside the company balancing its books with firm commitments for a $AUD5 million dollar placement which allowed the company to strengthen its balance sheet.
With the supply deal now being acted on, LGP has now opened a pathway to a second major cannabis distributor in leading European medical cannabis healthcare group Bloomwell, which maintains total ownership over Illios Sante, as the company continues to cement its place as the preeminent non-Canadian medicinal cannabis supplier to Germany.
This is just another step in LGP’s European strategy of being a first mover in the market, with extensive quality and regulatory requirements associated with shipping pharmaceuticals between countries giving pioneers a massive head start.
The company has numerous other supply agreements for its high-THC cannabis flower from its world-class GACP cultivation and GMP licensed facility including two separate supply deals with medicinal cannabis giant Cannamedical totalling a potential $AUD9 million dollars for the producer.
LGP’s Australian Stock Exchange-listed share price has risen 2.77 per cent today, currently selling at 18.5c (10:12 am UTC+8 hours).