• Cannatrek reached in-principle agreement with TGA on civil penalty
• Cannatrek to contribute additional $6.5M capital at completion
• LGP shareholders to vote on Scheme Consideration Resolution at General Meeting

Little Green Pharma Ltd (LGP) has provided an update on its proposed acquisition of 100% of the issued capital of Cannatrek Ltd (Cannatrek) by way of a scheme of arrangement. LGP has been informed that Cannatrek has reached an in-principle agreement with the Therapeutic Goods Administration (TGA) regarding alleged historical contraventions of the Therapeutic Goods Act. While the civil penalty is material, LGP understands it remains within the limits of the agreed economic parameters contemplated in the transaction. Cannatrek has also informed LGP that it anticipates contributing an additional estimated capital amount of $6.5 million at completion, over what was agreed as the minimum under the transaction documents. LGP will continue to keep shareholders updated on any further material developments regarding the TGA's investigation. LGP also provided an update on the conditions precedent for the scheme, noting that the parties do not anticipate any issues in achieving their satisfaction. LGP shareholders will consider the resolution to approve the issuance of new LGP ordinary shares and convertible shares in connection with the scheme at the upcoming General Meeting. LGP's board unanimously recommends that shareholders vote in favor of the resolution, in the absence of a superior proposal.