• Combination of two of the largest medicinal cannabis companies in Australia to create an international, vertically integrated business
• Leveraging synergies across manufacturing, clinics, and distribution to improve profitability and growth potential
• Accelerating expansion of LGP's European operations using Cannatrek's strong balance sheet

Little Green Pharma Ltd (ASX: LGP) and Cannatrek Ltd have entered into a Scheme Implementation Deed under which LGP will acquire 100% of Cannatrek's issued capital by way of a scheme of arrangement. Cannatrek is a leading Australian manufacturer and distributor of medicinal cannabis products, with vertically integrated operations spanning GMP-certified manufacturing, medical clinics and distribution. The transaction will create a leading fully vertically integrated medicinal cannabis group with operations spanning cultivation, manufacturing, distribution and clinic/digital health channels in Australia and Europe. The combined entity is expected to have $112 million in revenue, $13 million in Adjusted EBITDA and $15 million in cash based on 2025 financial results. Synergies are expected from leveraging manufacturing capabilities, combining clinic and distribution assets, and optimizing costs. The transaction will also accelerate the expansion of LGP's European operations, which is expected to be a key growth driver. The combined group will have the platform and resources for further international expansion through organic initiatives and strategic acquisitions.

Based on a simple proforma amalgamation of LGP and Cannatrek's 2025 audited annual financial statements, the Combined Group will have a pro-forma position of consolidated revenue of ~$112.3 million, an Adjusted EBITDA of ~$13.0 million, consolidated operating cash flow of ~$6.6 million, consolidated cash of ~$14.9 million, and net assets in excess of ~$136.7 million.

The Combined Group will become a platform for further international expansion, via both organic initiatives and investment and/or acquisition of synergistic opportunities as the global industry consolidates. The Combined Group shall be cash generative and will have unutilised debt capacity to assist in the funding of future initiatives.