Little Green Pharma (LGP) swung to a half-year loss of A$8.6 million as the company significantly expanded its research and development operations in Europe.
Spending on R&D at the Danish facility climbed to $7.3m from $516,000, with sales and marketing expenses reaching nearly $2m compared with $580,000 in the prior-year period.
The deficit contrasts with the company's half-year net profit of $484,000 in FY21.
The company attributed the deficit “predominantly” to efforts in developing new medicinal cannabis strains at its facility in Denmark.
Top-line revenue grew 94% during the period, reaching $7.2m.
The first half saw the company establish a foothold in several markets characterized by limited supply availability, including Greece, Denmark and Italy.
“Each of these territories are distinguished by having only one or two global cannabis suppliers qualified or registered to supply into these markers,” LGP said in its interim financial report.
“These pathways complement LGP's existing distribution networks and agreements into other limited supply territories, including France, where LGP is one of only four qualified suppliers, and Poland, where LGP anticipates being one of the first registered products on the market.”
The company continues to pursue discussions regarding “highly prospective” UK and EU markets, while strengthening its brand presence in Germany.
According to LGP, the company's portfolio of new and existing distribution agreements will create first-mover advantages and provide potential access to over 350 million Europeans.
LGP indicated it possesses a “clear understanding” of its pathway to achieving schedule 3 over-the-counter status following meetings with the Therapeutic Goods Administration.
