Global medicinal cannabis group Little Green Pharma (ASX: LGP) has received the final regulatory tick of approval for its recently commissioned manufacturing facility in WA, with investors welcoming the news.
The stock shot to an early high of 35.5c, up 22%, with over 580,000 shares changing hands by 8:30am WST (14 October 2020) on news it has received a Good Manufacturing Practices (GMP) licence issued by the Therapeutic Goods Administration (TGA) for the facility.
Importantly, this licence makes LGP the only fully licenced and permitted medicinal cannabis company listed on the ASX.
With all licences and permits in place, LGP is now allowed to operate a fully in-house and vertically-integrated cannabis cultivation, production, manufacturing, and wholesaling supply chain, capable of supplying various LGP-branded medicinal cannabis products into Australian and international markets.
The grant represents the culmination of LGP’s long-term regulatory strategy and is a clear watershed moment for the Company,” LGP Managing Director Fleta Solomon said.
“The grant of this GMP licence differentiates the Company as the only fully TGA and ODC licensed and permitted medicinal cannabis company listed on the ASX with local Australian cultivation, manufacturing and wholesaling capacity, as well as brands in market.
“This end-to-end capability allows us to more effectively manage costs, focus on higher-margin aspects of the supply chain, and supply LGP-branded GMP-grade medicinal cannabis products into the highly regulated markets of the European Union.”
Ms Solomon said the broad suite of licences and authorisations gave LGP flexibility to respond to changing market conditions, focus on higher-margin aspects of the product supply chain, and react quickly to new market opportunities. Building on the capacity offered by its experienced and exclusive GMP-licensed pharmaceutical manufacturing partner, LGP will continue to supply medicinal cannabis oils and flower products to patients in both the Australian and offshore markets as it continues to explore the development of alternative traditional and advanced delivery formulations.
LGP’s expanded facility is capable of processing and drying cannabis flower to GMP grade and comprises nine flowering rooms equipped with a number of automated technologies to enhance cultivation effectiveness (including rolling benches, computer-timed LED lighting, climate control, and irrigation control), two mother plant rooms, and two vegetation rooms.
The facility will increase potential annual production capacity to approximately 110,000 (50ml) bottles of medicinal cannabis oil, alternatively it could produce up to 175,000 x 10gm units of medicinal cannabis flower (as an alternative to 110,000 units of oil, or a combination of both)
Shares in the stock were last trading at 33c at 8:30am WST.