Little Green Pharma Ltd (ASX: LGP) has secured firm commitments for a $4 million placement from new and existing institutional and sophisticated investors as well as commitments for a further $200,000 from the company’s Board and Executive.
The company has also confirmed it will shortly launch a Share Purchase Plan (SPP) for eligible existing shareholders on the same terms as under the Placement.
Under the SPP Offer, eligible shareholders will be invited to apply to subscribe for up to $30,000 of shares and free-attaching options without the cost of brokerage fees or commissions. The SPP will be open to eligible shareholders, being shareholders on the Company’s register as at 5.00pm (AWST), November 1, 2022.
LGP intends to raise $2 million via the SPP.
Settlement of the Placement Securities is expected to occur on Tuesday November 8, 2022, and the issue of the Options will occur at the same time as under the SPP. All Placement Securities and exercised Option shares will rank equally with the Company’s existing shares on issue.
We are pleased by the strong support shown by new and existing institutional and sophisticated investors and the company’s Board and Executive for both the company’s success to date as well as its prospects for the future,” CEO, Fleta Solomon, said.
“We are also very pleased to be able to offer our existing shareholders the same opportunity to expand their investment in LGP on attractive terms and look forward to providing shareholders with full details of the SPP in the coming weeks.”
Use of funds
LGP is now wholly focused on achieving breakeven and ultimately delivering profitable sales, including by executing against its existing and proposed new supply agreements into Europe and driving increased sales in Australia, while continuing the cost reduction and rightsizing measures outlined in its Quarterly Activities Report.
LGP has an extensive portfolio of European sales agreements as detailed in its September Quarterly. That announcement outlines the sales progress achieved to date and provides a tangible pathway for revenue growth for the company.
The company will use the funds from the Placement and SPP for operational expenses, accelerating European and Australian sales, and offer costs.