Cannabis company Little Green Pharma has announced that it has firm commitments for a $5 million share placement at $0.18 per share, with the new capital to be used to repay the balance of a loan note to Canopy Growth Corporation and working capital.
LGP, which makes cannabis products at a facility in Perth and in Denmark, said the placement offer price represented a 5.3 per cent discount to the last price close on March 21.
“The proceeds of the Placement allow us to fully repay the outstanding Loan Note with Canopy Growth Corporation in relation to our 2021 Denmark facility acquisition, which both strengthens our balance sheet and removes associated interest expenses,” said CEO Fleta Solomon (pictured) in a statement on Friday.
“In addition, the business will use the balance of the funding to continue delivering on its growth trajectory and focus on achieving cash-flow break-even.”
LGP was established in 2016 and its main product types are cannabis oils (for ingestion) and flowers (typically vaporised and inhaled.)
Picture: credit LGP