Investment company FastForward innovations invested a further AUD 2.77 million (£ 1.5 million) in its portfolio company Little Green Pharma (LGP) on Monday.
The company traded by AIM described LGP as an ASX-listed, vertically integrated medical cannabis company with activities ranging from cultivation and production to manufacture and distribution.
The investment is part of a placement of A $ 27.2 million by LGP at Australian cents per share to fund the acquisition of a fully functional GACP grow and GMP-licensed medical cannabis asset in Denmark.
Following the investment, FastForward said its stake in LGP totaled 7,324,796 common shares, representing 3.15% of the expanded share capital in issue.
The board said the investment further increased FastForward’s exposure to the medical cannabis industry, noting that LGP’s A $ 27.2 million fundraising project is “heavily supported” by institutional and experienced investors.
Proceeds from the placement would be used by LGP to fund the acquisition of a “world class, fully functional” GACP cultivation and GMP licensed medical cannabis facility in Denmark with a capacity of more than 20 tons of biomass per year, including 12 tons dried cannabis flowers.
FastForward added that the facility “is a clear strategic fit with LGP’s existing operations and capabilities,” giving it immediate additional cultivation and production capacity and accelerating the planned capacity expansion by up to two years.
It was also in line with its EU expansion strategy and provided a platform to take advantage of LGP’s early mover advantage in key European Union markets.
The facility would position LGP as a “leading” global pure medical cannabis producer and owner of one of the largest cannabis manufacturing facilities in Europe.
“LGP is pursuing an ambitious growth strategy and has exceeded our expectations to date,” said Ed McDermott, FastForward’s chief executive officer.
“We are delighted to be able to continue to support you in this fundraising campaign as part of a very significant development in your history that will help increase cultivation and production capacities and accelerate your planned expansion by up to two years.
“With strong management, an expanding business spectrum and good capitalization, I believe that they are well positioned to build on the very solid foundations already in place in Australia and increasingly also in Europe, and with now secure access to the Danish location this will provide immediate access to medical grade products in quantities that will give LGP the opportunity for further growth. “
At 9:10 AM BST, FastForward Innovations shares rose 1.84% at 8:30 PM.