Little Green Pharma has received an additional firm purchase order for ~21,300 units of the Company’s high-THC medicinal cannabis flower medicine from German pharmaceutical wholesaler Deutsche Medizinalcannabis GmbH (“DEMECAN”). The purchase order has a value of $2.5m and represents ~320kg of flower for delivery during the quarter ending 31 December 2021.
LGP’s Managing Director, Fleta Solomon, commented that: “This order means a lot more than just the value of the sales it represents, it’s tangible evidence of the success of our strategy. We are currently in a position where all flower product we produce is sold into Australia and overseas markets and we have customers looking for more. It heightens the urgency for us to focus on increasing our production capacity to capitalize on the brand equity we have built in the market.”
This is the fourth purchase order received from DEMECAN, following previous quarterly orders of 500, 9,000, and 17,000 units for delivery in CYQ1, Q2, and Q3 of 2021, respectively. DEMECAN has now ordered a total of ~47,800 units of LGP medicines which would bring the total revenue for CY2021 to ~$5.7m from DEMECAN alone. The annualised run-rate based on this CYQ4 order would be ~1,300kgs per annum, which would significantly exceed the original target run-rate of 1,000kgs per annum under the medicinal cannabis purchase agreement (refer ASX announcement dated 27 February 2020), and would bring the total annualized DEMECAN revenues to ~$10.2m per annum. The Company has brought its existing cultivation facilities to full capacity in order to capitalise on growing demand in the German market, as well as increasing demand from Australian and other offshore markets.
For more information:
Little Green Pharma
PO Box 690, West Perth WA 6872
+61 8 6280 0050
[email protected]
littlegreenpharma.com