(Alliance News) - Seed Innovations Ltd on Friday said that its portfolio company, Little Green Pharma Ltd, has signed a second deal worth EUR3 million over two years to supply bulk medicinal cannabis from Denmark to Germany.
The medical cannabis, health and wellness company said that Little Green Pharma's Danish subsidiary had partnered with Cannamedical Pharma GmbH, an independent German medical cannabis wholesaler.
According to the agreement, Little Green Pharma Denmark ApS will exclusively supply its product to Cannamedical for sale in Germany, subject to ordering minimum quantities every six months to maintain exclusivity.
Additionally, the product pricing contemplates an adjustment for every percentage point the THC content is above or below 22%, and with the payment terms requiring the upfront payment of a portion of the purchase price upon delivery.
Little Green Pharma said it was targeting delivery of its first shipment of non-irradiated SMS product in the first quarter of 2023.
In other news, the company on Thursday reported strong revenue growth over the first half, up 25% to USD9.2 million from the six months to December 31.
During the period, the group successfully delivered products into Australia, Denmark, Germany, France, Italy, the UK, and Belgium seeing strong sales growth, particularly within the flower category.
Australian operations continued at a steady state, while the optimisation programme at the Danish facility continued, with the implementation of an automated packaging machine, the right-sizing of the operational team and a review of its standard operating procedures.
On September 28, the company received 28 infringement notices valued at USD372,960 from the Therapeutic Goods Administration in connection with alleged unlawful advertising of its medicinal cannabis products.
Since then, Little Green Pharma has successfully applied for two extensions until December 20, and has now filed detailed appeal submissions with the TGA in relation to the notices.
Seed Innovations shares were trading 0.8% lower at 2.58 pence each in London on Friday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
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