(Sharecast News) - Investment company FastForward Innovations has put a further AUD 2.77m (£1.5m) in its portfolio firm Little Green Pharma (LGP), it announced on Monday.
The AIM-traded company described LGP as an ASX-Listed, vertically-integrated medicinal cannabis business, with operations from cultivation and production through to manufacturing and distribution.
It said the investment was part of a AUD 27.2m placing by LGP at 60 Australian cents per share, to part-fund the acquisition of a fully-operational GACP cultivation and GMP-licenced medicinal cannabis asset in Denmark.
Following the investment, FastForward said its holding in LGP totalled 7,324,796 ordinary shares, representing 3.15% of its enlarged issued share capital.
The board said the investment further developed the FastForward's exposure to the medicinal cannabis industry, noting "strong support" for LGP's AUD 27.2m fundraise from institutional and sophisticated investors.
Proceeds from the placing would be used by LGP to part-fund the acquisition of a "world-class, fully-operational" GACP cultivation and GMP-licenced medicinal cannabis asset in Denmark, with the capacity to produce more than 20 tonnes of biomass annually, including 12 tonnes of dried cannabis flower.
The facility was a "clear strategic fit" with LGP's existing operations and capabilities, FastForward said, immediately providing it with additional cultivation and manufacturing capacity and accelerating its planned capacity expansion by up to two years.
It was also in line with its EU expansion strategy, providing a platform to leverage LGP's early-mover advantage in key European Union markets.
The facility would position LGP as a "leading" global pure-play medicinal cannabis producer and owner of one of the largest cannabis production assets in Europe.
"LGP is ambitious in their growth strategy and to date have delivered beyond our expectations," said FastForward chief executive officer Ed McDermott.
"We are pleased to further support them in this fundraise as part of a very significant development in their history, which will contribute to increasing cultivation and manufacturing capacity accelerating their planned expansion by up to two years.
"With strong management, a broadening range of operations and being well capitalised, I believe they are well positioned to build on the very solid foundations already in place in Australia and increasingly so in Europe, and with access to the Danish facility now secured, this will provide immediate access to medical grade product at volumes that will allow LGP the opportunity for further growth."
At 0910 BST, shares in FastForward Innovations were up 1.84% at 8.3p.
28 Jan 2016 17:13