Little Green Pharma (LGP) has signed a large-volume, take-or-pay contract with Four 20 Pharma for the exclusive supply of its high-THC (25%) SMS strain in Germany.
The minimum commitment of A$7.5 million over 30 months includes a fee to help cover strain development costs.
LGP said the deal followed a bidding process for the strain among a number of potential distribution partners, a process it intends to repeat for other new strains, as well as rolling out SMS into other markets.
Four 20 Pharma is a GMP licensed German manufacturer, wholesaler and importer of medicinal cannabis.
LGP CEO Fleta Solomon said: “We are very excited by our new SMS strain as well as the opportunity to be partnering with Four 20 Pharma, one of the largest medicinal cannabis operators in Germany with a highly successful track record of supplying its 420 Natural brand into the German market.
“The agreement represents another significant milestone in LGP’s continued growth of its Danish facility, as well as an exciting development in [its] supply processes that promises to dramatically shorten supply timelines for future key strains.”
Last month, LGP announced its Danish operation would provide more than 1.3 tonnes of white-label flower to German distributor Demecan in a deal the company said could generate A$27 million in revenue over the next three years.
