24th Mar 2023 14:16
Seed Innovations Ltd - AIM-listed investor in the medical cannabis, health, and wellness space - Says its portfolio firm Little Green Pharma Ltd has completed a placement worth USD5 million from from new and existing investors. Says the funds will be used to repay balance of loan note with Canopy Growth Corp and for working capital and costs of offer. Little Green Pharma says, under the placement, it will issue new shared at USD0.18 per share, representing a 5.3% discount to the last price of USD0.19 per share on Tuesday.
Chief Executive Officer of Little Green Pharma Fleta Solomon says: "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. 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."
Seed Innovations owns 7.3 million ordinary shares in LGP representing 2.7% of LGP's issued share capital.
Current stock price: 1.83 pence each, down 3.7% on Friday afternoon in London
12-month change: down 61%
By Xindi Wei, Alliance News reporter
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