LGC Capital (TSXV:LG) announced a Binding Term Sheet with Habi Pharma, an Australian licensed cannabis company engaged with Little Green Pharma. As part of the deal, LGC’s strategic interest in Little Green Pharma will increase from 11.91 percent to 14.99 percent.
The proposed increase to 14.99% will take LGC’s interest in Little Green Pharma to just below the 15% threshold requiring approval from the Australian Foreign Investment Review Board.
Increasing LGC’s interest in Little Green Pharma has been a top priority for LGC over the past few months, and even more so since the Australian Government announced on January 4, 2018 an important step for the development of the Australian medical cannabis sector by permitting the export of medicinal cannabis products from Australia.
John McMullen, CEO of LGC commented, “The recent changes in Australian Government policy to allow companies like Little Green Pharma to export medical cannabis outside of Australia significantly changes the importance of this investment within the LGC global footprint portfolio.”