SOUTH West-based Little Green Pharma (LGP) has confirmed its position as a significant exporter of medicinal cannabis products to Europe after receiving another large purchase order for 2021.
LGP announced last week that it has received an additional firm purchase order for about 21,300 units of the company's high-THC (tetrahydrocannabinol) medicinal cannabis flower medicine from German pharmaceutical wholesaler DEMECAN.
The purchase order has a value of $2.5 million and represents about 320 kilogram of flower for delivery during the quarter ending December 31.
LGP managing director Fleta Solomon said the order meant a lot more than just the value of the sales it represented as it was tangible evidence of the success of their strategy.
"We are currently in a position where all flower products we produce are sold into Australia and overseas markets and we have customers looking for more," Ms Solomon said.
"It heightens the urgency for us to focus on increasing our production capacity to capitalise on the brand equity we have built in the market."
This is the fourth purchase order received from DEMECAN, following previous quarterly orders of 500, 9000, and 17,000 units for delivery in Q1, Q2, and Q3 of 2021, respectively.
DEMECAN has now ordered a total of about 47,800 units of LGP medicines which would bring the total revenue for 2021 to around $5.7m from DEMECAN alone.
"The annualised run-rate based on this CYQ4 order would be about 1300kg per annum," Ms Solomon said.
"That would significantly exceed the original target run-rate of 1,000kg per annum under the medicinal cannabis purchase agreement and would bring the total annualised DEMECAN revenues to around $10.2m per annum."
LGP has brought its existing cultivation facilities to full capacity in order to capitalise on growing demand in the German market, as well as increasing demand from Australian and other offshore markets.