Purchase of Denmark cultivation/ production facility

- LGP recently purchased (21/6/21) a Denmark cultivation and production facility for A$21.4m

- This is capable of producing 12 tonnes pa of dried flower

- Its production facility in West Australia is hitting output capacity limits as a result of orders which has an output of 1.5 tonnes pa of dried flower

- This increases output from 1.5 -> 23 tonnes pa

- New facility in EU avoids many EU export/import barriers allowing early mover advantage in EU markets

- Efficiency gains through economies of scale

- Maintains LGP's focus on medicinal cannabis

Headwinds

- The Faculty of Pain Medicine of the Australian and New Zealand College of Anaesthetists (ANZCA) has recomended to its pain specialists and anaesthetists to, "Do not prescribe currently available cannabinoid products to treat chronic non-cancer pain unless part of a registered clinical trial."

- The Dean of the Faculty of Pain Medicine, Associate Professor Mick Vagg, a specialist pain medicine physician, said while managing chronic, non-cancer pain is complex, there has as yet been no evidence from clinical trials to support the use of medicinal cannabis as a treatment.

- A study called the QUEST (Quality of Life Evaluation Study) is being run by Sydney Uni.  It has recruited 805 patients and includes Professor Stephan Schug as an advisor who is a recently retired Chair and Director of Anaesthesia and Pain at Royal Hospital.

- I am an anaesthetist.  There is currently a very low prescriber rate for cannabis products amoung our profession.

- The outcome of these higher quality studies are important in determining whether these products will be incorporated into the armentarium of doctors