Seed Innovations reported on Wednesday that its portfolio company, Little Green Pharma (LGP), has completed the acquisition of Health House, a medicinal cannabis distribution business in Australia.
The AIM-traded firm said the acquisition would strengthen LGP's vertical integration, and aligned with its long-term expansion strategy amid the restructuring of the Australian medicinal cannabis industry.
Health House, a long-standing distribution partner of LGP, generates about $7.5m in annual revenue and has reached cash flow breakeven.
The deal involved a net cash payment of around $0.38m, with LGP also assuming an estimated $0.35m in net liabilities, excluding existing payables owed to LGP.
"LGP's acquisition of Health House strengthens its position in the rapidly growing Australian medicinal cannabis market by enhancing its distribution capabilities and reinforcing its vertical integration strategy," said Seed's director of investment research, Alfredo Pascual.
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Seed Innovations
seedinnovations.co/