Mining billionaire Gina Rinehart’s Hancock Prospecting has taken a 10% stake in Little Green Pharma with a A$15 million investment.
Rinehart’s move into cannabis stocks was part of a $27.2 million capital raising by LGP to fund the acquisition of an existing, licensed cultivation and manufacturing facility in Denmark.
Managing director Fleta Solomon said the purchase would increase the capacity of its previously planned production expansion eight-fold.
“Purchasing the Denmark facility provides both cost and time savings and was a preferable option to building out production capacity at our existing facility,” she said.
“We’ll keep our foot on our Australian property for longer term growth but are now able to redeploy the significant capex investment we had planned.”
“We are confident this acquisition is an efficient use of our capital and will drive long-term value for our shareholders,” she added.
The Danish facility brings forward LGP’s expansion plans in Europe by two years and will see its annual cultivation capacity increase from three tonnes of biomass at its existing WA facility to a total of 23 tonnes, including 12 tonnes of dried cannabis flower.
Hancock Prospecting business development general manager Dan Wade said: “We believe medicinal cannabis has a vital role in helping to treat a range of chronic conditions, and we’re pleased to support an Australian medicinal cannabis company that continues to put patients first and contribute to the development of this helpful and emerging industry.”