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LGP - Little Green Pharma

Discussion in 'Stocks I-P' started by System, Jan 15, 2020.

  1. System

    System Administrator

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    Little Green Pharma Ltd (LGP), together with its exclusive Manufacturing Partner and via its distribution arrangements, operates a vertically integrated medicinal cannabis business comprising cultivation, production, research and development, manufacturing, and distribution of medicinal cannabis products.

    LGP holds all licences and permits required in Australia to cultivate, produce and sell medicinal cannabis products, and all licences to import and export medicinal cannabis products offshore. LGP's Manufacturing Partner holds all relevant licences to import and export medicinal cannabis products as well as all licences and permits to manufacture and distribute finished medicinal cannabis products for LGP.

    LGP currently sells and distributes its medicinal cannabis products in Australia through Oxford Compounding Pty Ltd for patients in Western Australia and Health House International Pty Ltd for patients in other states and territories. As of October 2019, LGP products have been used by more than 1,400 patients in Australia, with over 4,500 bottles of medicinal cannabis oil sold.

    LGP aims to take advantage of opportunities relating to the emerging medicinal cannabis industry in Australia and in certain international jurisdictions.

    It is anticipated that LGP will list on the ASX during February 2020.

    https://www.littlegreenpharma.com
     
  2. Dona Ferentes

    Dona Ferentes

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    https://smallcaps.com.au/little-green-pharma-asx-listing-grow-medical-cannabis-exports/
     
  3. Chief_Wigam

    Chief_Wigam

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  4. Chief_Wigam

    Chief_Wigam

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    I expect the demand will be high.

    They already had all the investment funds they needed. The IPO wasn't open to the general public. This is from the prospectus:
    QUOTE
    The Offer comprises:

    • the Broker Firm Offer, which is open to Australian resident retail clients of Brokers who have received a firm allocation of Shares from their Broker;
    • the Institutional Offer, which consists of an offer to Institutional Investors in Australia and a number of other eligible jurisdictions to apply for Shares; and
    • the Chairman's List Offer, which consists of an offer to selected investors in Australia who have received an invitation from the Chairman or the Company

    No general public offer will be made under the Offer.

    UNQUOTE
     
  5. galumay

    galumay learner

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    Thats a clever way to create FOMO!

    I dont doubt it will attract plenty of punters buying into the pot narrative.
     
  6. Chief_Wigam

    Chief_Wigam

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    They only needed about 6mil to build a factory and their pre-float investors pumped in more than that.

    I would think that as they are the only GMP certified co. out there, with a recognised Leadership team and Academics from University as advisors, they will be differentiated from other companies in this space.
     
  7. galumay

    galumay learner

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    Its still a crap sector, its an cyclical agricultural commodity play. The whole pot narrative is completely disconnected from business fundamentals. May as well buy bitcoin or lithium companies.
     
  8. Chief_Wigam

    Chief_Wigam

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    I would beg to differ. Motely Fool has this to say about the sector:

    On Tuesday, Nov. 6, Michigan became the 10th state in America to legalize recreational marijuana... and the very first Midwestern state.

    Additionally, Missouri and Utah both legalized medical marijuana use. If you're keeping track, that's now 33 of 50 states with some form of decriminalized marijuana.

    Now, why am I taking time out of your day to tell you about this?

    Because I believe these three states are ushering us one step closer to an unprecedented boom in the cannabis market.

    Frankly, I don't care about cannabis itself... but I sure do care about massive opportunities for forward-thinking investors... which is EXACTLY what I see here.

    Here's what I'm talking about. Financial experts from all over the world agree: a marijuana boom is coming.

    To the tune of an estimated $80 billion.

    And here at The Motley Fool, we've identified a little-known Canadian company that might have just unlocked the key to profiting off marijuana.

    The state of cannabis

    Cannabis legalization is sweeping over North America:

    • 9 U.S. states plus Washington, D.C. legalized recreational marijuana in recent years
    • Full legalization in Canada as of Oct. 17th
    • Michigan, Missouri, and Utah all pass marijuana referendums in 2018 midterms
    • Legal cannabis worth $50 billion in the U.S. today
    And since some experts have projected the American industry to skyrocket to as much as $80 billion by 2026, I think it's time for investors to start paying attention.

    But until recently, it's also an industry that we've stayed on the fence about. it's a relatively new field... untested... unproven.

    And while The Motley Fool analysts love being on the cutting-edge of new investing trends...

    ...like picking Amazon at $15.31 a share...

    ...Netflix at $1.85 a share...

    ...or Disney at $1.84 a share...

    ...we've been quiet on this growing marijuana industry for a while.

    Until now.

    Because a game-changing deal just went down between the Ontario government and a powerhouse Canadian company.

    And that company - which now has the opportunity to rake in profits from the $7 billion Canadian cannabis industry AND potentially the $80 billion US cannabis industry - is no stranger to us here at The Motley Fool.

    Because we've actually recommended this company before... for completely different reasons! And take a look at how it's done since we recommended it to our members in July 2016:

    • 1,402% returns since
    • 52% sales growth in last year alone
    • Estimated 98% of addressable market left to conquer
    This small Canadian powerhouse has locked in key partnerships with behemoths like Facebook, Amazon, and now the Ontario government.

    And even with all that, the company's CEO declared that he thinks they're only 2-3% into what this company could eventually become.

    We here at The Motley Fool are convinced we're only in the VERY early days of this company's trajectory.

    Which means there could still be boatloads more profit to be had for in-the-know investors who are prepared to take action.

    Now, I don't like to brag... but here at The Motley Fool, we've had a pretty good track record of picking trends before they get big. Take a look at a few of the companies we picked to dominate their field:

    • Netflix, up 15,718%
    • Amazon, up 13,288%
    • Bookings Holdings, up 7,764%
    • Walt Disney, up 7,910%
    If you'd invested $1,000 in each of those companies when we recommended them in Stock Advisor, you'd be sitting on $450,797 right now.

    Which brings me back to this latest find.

    This company's future doesn't hinge on marijuana. If all forms of THC are banned forever in the United States, we think this company still has an incredible field of opportunity. (Heck, that's why we recommended it in the first place!)

    But now that there's an estimated $80 billion industry emerging from the woodwork, their prospects are positively mouth-watering - and we think you'll regret not getting invested now.

    Because now there's the potential for even more capitalization for this small company. And if you're not invested, you may come to regret it.

    Forget penny pot stocks.

    Forget untried, inexperienced cannabis farmers.

    THIS is the company we think you should have in your portfolio if you want to position yourself wisely for the coming marijuana boom.

    And even though this company has had unprecedented success so far... and they've just made a history-defining deal with the Canadian government... far fewer investors than you might expect are taking advantage of this VERY rare moment.

    Due to the urgency of this recent development, we put together a thorough report that shows you how this emerging industry could potentially mint its own "marijuana millionaires".

    It reveals the reasons why we think every forward-thinking investor should be paying close attention to this revolutionary new industry and what might be a potentially life-changing investment opportunity.

    Best of all, this report is FREE to you when you sign up for Stock Advisor today.

    Simply click below to learn about the one stock we think you need to consider for your portfolio for the coming cannabis boom.
     
  9. galumay

    galumay learner

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    If you think MF's are the path to successful investing, then no doubt you will fall for the pot fomo too.

    Have a read of the tripe you have copy and pasted and try to do some second level thinking about what the agenda actually is.

    Go and have a deeper look at the thousands of companies that MF have recommended over the years and see the proportion of them that have disappeared, gone bankrupt or at best are trading below the price MF had them as a buy.

    This sort of nonsense belongs on Hot Copper and its disappointing to see it pushed here.
     
    qldfrog likes this.
  10. Chief_Wigam

    Chief_Wigam

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    You're welcome.
     
  11. Chief_Wigam

    Chief_Wigam

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    A diamond in the rough. Congrats on those who managed to buy yesterday. A great run company with top leadership team, attractive MC. Buying at float price is still a bargain, based on the fact the IPO was oversubscribed
     
  12. Dona Ferentes

    Dona Ferentes

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    There's an article in today's AFR titled
    Would you buy shares from an Instagram model. There's a mention of this company, among many, and the efforts to get companies to market at IPO.
    LGP didn't do too well, and I suspect the serial poster is less attractive than the model (she's blonde)(loves puppies, tattoos and sunshine).

    https://www.afr.com/companies/profe...hares-from-an-instagram-model-20200219-p5427f

     
  13. Chief_Wigam

    Chief_Wigam

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    I find it baffling that LGP can be valued by the market lower than AusCann (AC8). Here is my quick look comparison between the two. Am I missing something? Seems to me LGP is undervalued.
    LGP v AusCann


    Market Cap
    $51m v $73m

    2H 2020 Revenue
    $716k v zero

    Growth rate
    20% per month v zero

    2H 2020 Burn Rate
    $4.1m v $3.4m

    Products in Market
    4 v 0

    Cash on Hand
    ~$10m v $26m

    Production Capacity and Timing
    LGP: 110,000 bottles or 1750kg of dried flower per annum to commence in 2Q 2020. Current capacity is ~200-250kg / annum??
    AusCann: none - all outsourced

    Breakeven expectations
    3Q 2020 v no timeline given
     
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