Investee Company Update: Little Green Pharma Ltd

SEED Innovations Ltd, the AIM-quoted investment company offering exposure to disruptive, high-growth, life sciences and technology ventures typically inaccessible to everyday investors, is pleased to announce that its portfolio company, Little Green Pharma Ltd ("LGP"), is today (5 February 2025) due to complete the acquisition of HHI (Australia) Pty Ltd ("Health House"), the owner of Health House, a leading medicinal cannabis distribution business in Australia.

SEED holds 7,324,796 ordinary shares in LGP, representing approximately 2.4% of LGP's issued share capital.

Commenting on LGP's acquisition, Alfredo Pascual, Director of Investment Research at SEED, said: "LGP's acquisition of Health House strengthens its position in the rapidly growing Australian medicinal cannabis market by enhancing its distribution capabilities and reinforcing its vertical integration strategy. This move comes amid ongoing industry consolidation and allows LGP to secure a key distribution partner at an attractive valuation, demonstrating its ability to execute disciplined, value-accretive growth. We are confident that this acquisition will create long-term value for both LGP and SEED shareholders."

Key Highlights:

• LGP is completing the acquisition of Health House today (5 February 2025), marking a significant step in its strategic growth.
• This acquisition extends LGP's vertical integration, aligning with its long-term acquisition strategy amid the ongoing restructuring of the Australian medicinal cannabis industry.
• Health House, a longtime distribution partner of LGP, generates around $7.5 million (unaudited) in annual revenue and has achieved cashflow breakeven.
• The deal involves a net cash outlay of approximately $375,000, with LGP also assuming Health House's estimated $350,000 net liability (excluding existing payables owed to LGP).
• LGP sees the acquisition as offering exceptional value, especially considering that Health House's parent company, Melodiol Global Health (in liquidation), had previously listed the business for sale at $10.9 million in September 2024.

LGP's full announcement can be accessed here:

Little Green Pharma

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