REG - Seed Innovations Ltd - Investee Company Update: Little Green Pharma

Seed InnovationsAnnouncement

14/01/2026 15:00

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RNS Number : 9287O  Seed Innovations Limited  14 January 2026

 

Seed Innovations Ltd / AIM: SEED / Sector: Closed End Investments

 

14 January 2026

SEED Innovations Limited

("SEED" or the "Company")

 

Investee Company Update: Little Green Pharma Ltd

 

SEED Innovations Ltd, the AIM-quoted investing company, notes an announcement
released on the ASX by its legacy portfolio company, Little Green Pharma Ltd
("LGP"), regarding a proposed merger with Cannatrek.

 

Key highlights of the announcement are set out below. The full announcement is
available at the following link:

https://investlittlegreenpharma.com/site/pdf/72f4e4ae-5ae6-4348-a48e-11b81de9f804/Transformational-Merger-of-LGP-and-Cannatrek.pdf?Platform=ListPage
(https://investlittlegreenpharma.com/site/pdf/72f4e4ae-5ae6-4348-a48e-11b81de9f804/Transformational-Merger-of-LGP-and-Cannatrek.pdf?Platform=ListPage)

 

SEED holds 7,324,796 ordinary shares in LGP, representing approximately 2.4%
of LGP's issued share capital.

 

Little Green Pharma Ltd

 

Transformational Merger Of Little Green Pharma And Cannatrek

 

Highlights

·    Little Green Pharma Ltd (ASX:LGP) ("LGP" or the "Company") and
Cannatrek Ltd (Cannatrek) have today entered into a Scheme Implementation Deed
(SID) under which LGP has agreed to acquire 100% of Cannatrek's issued capital
by way of a scheme of arrangement (Scheme)

·    Cannatrek is a leading Australian manufacturer and distributor of
medicinal cannabis products, with vertically integrated operations spanning
GMP-certified manufacturing, medical clinics and distribution operations

·    The Scheme consideration will comprise LGP ordinary shares and new
LGP contingent value shares, with existing LGP shareholders holding ~39.5% and
Cannatrek shareholders holding ~60.5% of the fully diluted issued capital in
LGP at Completion, and with Cannatrek Shareholders additionally holding
contingent value shares (CV Shares) that based on the outcome of future events
may convert into ordinary LGP shares and increase Cannatrek shareholder
holdings by up to an additional eight percent

·    The Cannatrek Board representing ~22% of the Cannatrek shares on
issue unanimously recommends the Scheme, and the Cannatrek Directors intend to
vote all Cannatrek shares in which they have a relevant interest in favour of
the Scheme, in the absence of a superior proposal and subject to the
Independent Expert concluding (and continuing to conclude) that the Scheme is
in the best interests of Cannatrek shareholders

·    The LGP Board representing 13.1% of the LGP shares on issue
unanimously recommend the proposed merger, and intend to vote all LGP shares
in which they have a relevant interest in favour of the issue of merger
consideration shares in the absence of a superior proposal

·    The proposed merger will create a leading fully vertically integrated
medicinal cannabis group (Combined Group) with operations spanning
cultivation, GMP-certified manufacturing and packaging, distribution and
clinic and digital health channels in Australia and Europe

·    The transaction is consistent with LGP's prior market disclosures
regarding its strategy of industry consolidation and market rationalisation
and reflects the increasing importance of size in the Australian and European
medicinal cannabis markets, where operational scale, brand recognition and
distribution capability are key drivers for market share growth and long-term
competitiveness

·    If the Scheme is implemented, based on a simple amalgamation of the
2025 financial year results the pro forma Combined Group would have had $112
million in revenue, an Adjusted EBITDA of $13 million and cash of $15 million.

·    Synergy opportunities are expected to come from such areas as
leveraging Cannatrek's latent Australian GMP-certified manufacturing for the
Australian market and LGP Denmark's latent GMP-certified manufacturing
capacity for European markets; combining clinic operations; and optimising
cost and expense management

·    The strength of Cannatrek's balance sheet will accelerate the scaling
and growth of LGP's European operations. This is expected to be a principal
growth engine for the Combined Group in the short term, particularly as Europe
is projected to rapidly grow to become one of the largest medicinal cannabis
markets worldwide

·    The Combined Group will also provide a platform for further
international expansion, via both acquisition and investment and organic
growth initiatives

 

- Ends -

 

For further information on the Company please visit: www.seedinnovations.co
(http://www.seedinnovations.co/)  or contact:

 

 Lance de Jersey    SEED Innovations Ltd             E: info@seedinnovations.co 

                                                      
 James Biddle       Beaumont Cornish Limited,        T: (0)20 7628 3396

 Roland Cornish     Nomad                             
 Isabella Pierre    Shard Capital Partners LLP       T: (0)20 7186 9927

 Damon Heath        Broker
 Ana Ribeiro        St Brides Partners Ltd,          E: seed@stbridespartners.co.uk

 Isabel de Salis    Financial PR

NOTES

Seed Innovations Ltd

SEED Innovations Ltd (SEED.L) is an AIM-quoted investing company focused on
providing access to high-growth robotics and AI ventures typically beyond the
reach of everyday investors. The Company also oversees a legacy portfolio in
wellness and life sciences, with a medium-term strategy to unlock its full
value. Back by an experienced team and strong cash reserves, the Company
remains agile and well-positioned to capitalise on new investing opportunities
as they arise.

 

Nominated Adviser

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

 

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