Little Green Pharma (LGP) has received firm commitments for a A$4m placement and launched a $2m share purchase plan (SPP) for eligible shareholders.

The firm said the placement is being supported by new and existing institutional and sophisticated investors with a further $200,000 from the company’s board and executive, subject to shareholder approval.

Funds will be used for operational expenses and to accelerate European and Australian sales.

LGP said it is now “wholly focused on achieving break-even and ultimately delivering profitable sales, including by delivering into new and existing European supply agreements and driving increased sales in Australia”.

Meanwhile, in its September 2022 quarterly activities report, the company said it generated unaudited revenue of A$4.9m during the period, up 13% from the prior quarter’s $4.3m and 55% up on the previous corresponding period

It also increased its cash receipts from the previous quarter by almost 20%, to $4.4 million, ending the period with $4m cash in the bank. 

Revenue growth was driven by a 40% increase in flower sales in Australia ($1.6 million) and a 25% increase in Australian flower sales into Germany and the UK ($500,000) over the previous quarter. Oil sales in Australia increased by 10% to $2.6 million over the same period.

LGP said it “continues to see positive results from its rightsizing initiatives across the group”. 

While payroll was consistent quarter on quarter, the firm said it included several one-off payments that will result in a $250,000 reduction per quarter going forward. 

It also installed LED lighting at its Danish facility to reduce power consumption, with the Danish Government indicating its intention to provide support in relation to the ongoing high cost of power.

In October, LGP signed an equipment finance lease for $2 million with National Australia Bank secured over equipment at its Western Australian facility. The company said it will draw down against the loan in November.

Prior to launching Cannabiz, Martin was co-founder and CEO of Asia-Pac’s leading B2B media and marketing information brand Mumbrella, overseeing its sale to Diversified Communications in 2017. A journalist...

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