ASX Health Stocks: Cannabis Plays Little Green Pharma Signs $7.5M German Supply Deal
- Little Green Pharma expands footprint in Germany after signing major supply deal
- Apiam Health acquires two veterinary networks
Cannabis Company Little Green Pharma (ASX:LGP) signed a large volume, take-out contract with Four 20 Pharma for the exclusive supply of a new high-THC strain in Germany.
The agreement is LGP’s largest single-strain draw quantity contract to date, with a minimum take-or-pay commitment of $7.5 million over 30 months.
The deal is for the high-THC (25% THC) SMS strain recently developed by LGP, and will further expand LGP’s traction in Germany following the exclusive deal it signed with Demecan in April.
“We are very excited about our new SMS strain as well as the opportunity to partner with Four 20 Pharma, one of the largest medical cannabis operators in Germany,” said Fleta Solomon, CEO of LGP.
“They have a very successful track record of supplying its 420 Natural-branded cannabis products to the German market,” she added.
LGP has been making rapid progress in signing supply deals lately.
Under the Demecan agreement, LGP has the potential to supply up to 1.3 tons per year, representing an annual revenue opportunity of approximately $9 million in white label flowers from its factory. danish.
A deal with British company Sana Life Sciences in the UK in May for the company’s branded CBD oils was also worth a potential $1.44 million in revenue.
LGP has two global manufacturing sites for its white label lines of GMP grade medical cannabis products.
The Danish facility is a 21,500 m2 cultivation facility and a 4,000 m2 GMP manufacturing facility capable of producing over 30 tonnes of medicinal cannabis biomass per year.
The WA facility, on the other hand, is capable of producing approximately 3 tonnes of medicinal cannabis biomass per year.
Little Green Pharma share price today:
Apiam Animal acquires two veterinary networks
Apiam Animal Health (ASX: AHX) signed agreements to acquire the assets of Victorian Equine Group (VEG) and Romsey Veterinary Surgery.
VEG will be Apiam’s third high performance referral equine centre, which will provide Apiam with an expert referral equine offering across all of the eastern states of Australia.
It will also form a base for the expansion of Apiam’s equine services in Victoria.
Meanwhile, Romsey Vet Surgery is a rapidly growing clinic serving mixed animals (including equine) located in a major growth corridor from Melbourne to Bendigo.
Clinical activity benefits from a growing equine presence in this region.
The total combined consideration for the acquisitions is $13.75 million and will be funded by $9.8 million in cash and the issuance of $4 million in Apiam stock.
There will also be an additional earnout payable to VEG sellers of up to $1.2 million, based on FY22 performance.
Apiam Animal share price today:
At Stockhead, we tell it like it is. Although Little Green Pharma and Apiam Animal Health are Stockhead advertisers, they did not sponsor this article.