• LGP enters binding letter of intent to acquire 100% of Health House Australia
• Acquisition aligns with LGP's strategy to acquire sustainable medicinal cannabis businesses
• Transaction offers potential for significant operational synergies and enhanced vertical integration

Little Green Pharma Ltd (LGP) is pleased to announce it has entered into a binding letter of intent ('LOI') with Health House Australia Pty Ltd ('Seller'), granting LGP exclusive rights to acquire HH (Australia) Pty Ltd ('Health House'). The proposed acquisition aligns with LGP's strategy of capitalising on current market conditions to acquire sustainable medicinal cannabis businesses at attractive valuations. With a purchase price of $1.25 million for a cashflow breakeven business generating approximately $7.5 million in annual revenue, the transaction offers the potential to deliver significant operational synergies along with enhanced vertical integration capability while ensuring Health House can continue to operate as one of LGP's key distribution partners. The Seller has granted LGP an exclusivity period until 31 January 2025 to complete due diligence and finalise the terms for acquiring 100% of the issued shares in Health House on a fully diluted basis. The purchase price is $1.25 million in cash, calculated on a cash-free, debt-free basis as at 31 January 2025, with adjustments for net payables and receivables at closing. LGP also retains an option to complete the acquisition on these terms at any point during the exclusivity period. LGP will pay the Seller a non-refundable deposit of $50,000 and a refundable deposit of $25,000, which will be applied to the final acquisition price at closing. The Company views this transaction as an exciting opportunity to expand its vertical integration capability, enhance its operational flexibility, and further strengthen its leadership position in the Australian medicinal cannabis sector. Health House operates a nationally focused medicinal cannabis distribution business across Australia and has been a trusted distribution partner of LGP since 2019.