Shares in Little Green Pharma (ASX: LGP) jumped on Thursday on news it had delivered its highest monthly sales to date during March 2020.
The Australian-based medicinal cannabis company reported sales of 1,580 bottles of its medicinal cannabis oil product in March, up 21% on the number of bottles sold in February which was also a record sales month.
In an update to the market, LGP said that while it had taken precautionary measures across the business in light of the COVID-19 pandemic, it was business as usual with its overseas partners and expects to fulfil its international sales orders once the expanded cultivation facility – which was commissioned in Q1 CY2020 – is in production.
With its international sales agreements denominated in Euros or Pounds Sterling, the weaker Australian dollar was resulting in foreign exchange gains, according to LGP.
Meanwhile, LGP also said it was accelerating production to ensure adequate inventory is on hand and to source additional consumables and bulk starting materials for the production of finished cannabis medicines.
“These actions are intended to de-risk supply lines that may be affected by COVID-19,” LGP said in the ASX release.
First planting from the expanded cultivation facility will occur following the granting of the expanded Medicinal Cannabis permit by the Office of Drug Control (ODC), which is still expected to occur in Q2 CY2020, subject to any potential delays due to COVID-19.
Meanwhile, LGP also received its new ODC Manufacturing Licence and commenced construction of its onsite manufacturing facility in Q1 CY2020 with construction continues to progress as planned.
While the Company said it didn’t anticipate having to raise additional funds in the foreseeable future, it had nevertheless been implementing measures to minimise its cost base.