• LGP to acquire Health House, a long-term distribution partner, for $375,000
• Acquisition enhances LGP's distribution portfolio and opportunities for synergies
• Health House generated $7.5 million in annual revenue and achieved cashflow breakeven

Little Green Pharma Ltd (LGP) has announced that it has entered into a binding sale and purchase agreement to acquire HHI (Australia) Pty Ltd, the owner of the Health House medicinal cannabis distribution business. The acquisition, which is scheduled for completion today, represents a strategic extension of LGP's vertical integration and aligns with the company's stated acquisition strategy amid the ongoing restructuring of the Australian medicinal cannabis industry. Health House has been a long-term distribution partner of LGP, generating approximately $7.5 million (unaudited) in annual revenue and achieving cashflow breakeven. LGP will acquire Health House, including all of its property, plant and equipment, inventory, and intellectual property, for a total net cash outlay of an estimated $375,000, which includes a $75,000 deposit already paid. The remaining $300,000 will be paid in two installments, with $171,000 paid immediately and the balance paid in 40 days once the 31 January 2025 working capital position has been determined. On completion, LGP will absorb Health House's estimated $350,000 net liability position. LGP believes the final agreed terms represent exceptional value, with the acquisition following an earlier sale process where Health House's ultimate parent company, Melodiol Global Health (In Liquidation), listed the business for sale at $10.9 million in September 2024. LGP will work closely with Health House's team to ensure a seamless transition, including the integration of operations, systems, and personnel.

LGP expects the acquisition of Health House to enhance its distribution portfolio and opportunities for synergies, positioning the company strongly as the industry continues to consolidate.