Little Green Pharma (LGP) reported a half-year loss of A$8.6 million after embarking on a multi-million dollar research and development project in Europe.
The company spent $7.3m on R&D at its Danish facility, up from $516,000, while sales and marketing costs hit almost $2m, up from $580,000 in the previous corresponding period.
The loss compares to a half-year net profit in FY21 of $484,000.
LGP blamed the deficit “predominantly” on the development of new medicinal cannabis strains at its facility in Denmark.
Revenue during the period jumped 94% to $7.2m.
The company said the first half was marked by a continued early move into markets with limited supply options, including Greece, Denmark and Italy.
“Each of these territories are distinguished by having only one or two global cannabis suppliers qualified or registered to supply into these markers,” LGP said in its interim financial report.
“These pathways complement LGP’s existing distribution networks and agreements into other limited supply territories, including France, where LGP is one of only four qualified suppliers, and Poland, where LGP anticipates being one of the first registered products on the market.”
Negotiations to supply other “highly prospective” UK and EU markets are ongoing, the firm said, while it continues to raise its brand presence in Germany.
LGP said new and existing distribution agreements will provide early-mover advantage and give it potential access to more than 350 million Europeans.
Meanwhile, LGP said it has a “clear understanding” of its pathway to a schedule 3 over-the-counter product following meetings with the Therapeutic Goods Administration.