Australian medical cannabis company Little Green Pharma has moved to become a major player in Europe’s market.
The firm has bought up a major Denmark production operation, making it one of the continent’s most significant producers.
According to company analysis, the £11.6m facility is only operating at 25% of its capacity and could 20 tonnes of raw material a year.
Denmark is a major exporter of medical products and legislators recently confirmed the pilot medical cannabis programme will be extended
The 21,500 square meter site is already fully operational and operates at Europe’s benchmark GACP/GMP standards.
Little Green Pharma will ‘ramp up’ production at their new Denmark operation and plan to use the acquisition to break into Europe’s nascent medical cannabis market.
The company says the move ‘positions LGP as a leading global pure play medicinal cannabis producer and owner of one of the largest cannabis production assets in Europe’.
LGP’s managing director Fleta Solomon said: “The acquisition is a step change for LGP. We have been speaking for some time about the need to increase our production capacity and the Denmark facility not only gives us the cultivation and manufacturing capacity we need but does so immediately.
“We won’t be constrained by the two-year build and permitting time required to expand our existing west Australian facility.
“We are well positioned in the market to capitalise on the brand equity LGP has built in Europe and Australia, with the Denmark facility providing immediate access to medical grade product at volumes that will allow us the opportunity to accelerate our growth strategy.
“We are confident this acquisition is an efficient use of our capital and will drive long term value for our shareholders.
“The Denmark facility provides more than eight times the capacity of our previous planned production expansion.
“Purchasing the Denmark facility provides both cost and time savings and was a preferable option to building out production capacity at our existing facility.
“We’ll keep our foot on our Australian property for longer term growth but are now able to redeploy the significant capex investment we had planned.
“We greatly appreciate the support of our institutional shareholders in helping us accelerate our growth strategy.”