Little Green Pharma to sell WA production facility
Key points
- Signed agreement to sell and lease back production facility in Western Australia
- Sale proceeds to fund opportunities in Australia and expansion into Europe
- Will continue to operate the facility under a head lease for ~3.5 years
Full summary
Little Green Pharma Ltd (ASX:LGP) has signed an agreement to sell and lease back its production facility in South-West Western Australia. The facility comprises a ~1.3tpa GACP indoor cultivation facility and GMP-compliant production facility. The sale price is $7.8 million, and the buyer is Lauana Pty Ltd ATF Lauana Trust. The parties are now working to satisfy the various conditions precedent to the contract, which include buyer due diligence, financing, and agreement of a head lease through to 29 August 2029. LGP will continue to operate the facility under the head lease for a further period of approximately 3.5 years. As per the company's strategy, the sale proceeds will be used to fund opportunities in Australia and expansion into growth markets in Europe.
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