Little Green Pharma Ltd. announced the entry into a medicinal cannabis distribution agreement with Sana Life Sciences Ltd. for the supply of LGP-branded Classic Oils, Desert Flame flower, and a further balanced flower product currently in development, for distribution in the United Kingdom and UK crown dependences (Territory). Under the Agreement, the parties grant each other mutual exclusivity in the Territory for the supply or distribution of LGP 10:10 Classic Oil and medicinal cannabis oils with the same or similar ratios, subject to Sana meeting certain minimum exclusivity purchase thresholds per annum. With a potential revenue opportunity of AUD 1.44 million (£820,0001) per annum in the third year just for the 10:10 oil, together with additional revenues from sales of the remaining oils and flower ranges, the Agreement represents a key step in LGP's twin strategy of selling its own LGP-branded sales into the UK and EU while developing and supplying client-specific white-label strains for clients across Europe.

Material terms of the Agreement: Term is 3 years from first import with extension by agreement. Minimum purchase orders for flower products between 10- and 20-kilograms post ramp-up and 500 oil units per shipment. Sana to provide purchase orders to confirm supply ­ first purchase order expected end CYQ2 or early Q3.

Sana must purchase units valued at between $431,000 (£246,000) and $1.44 million (£820,0001) per year to maintain exclusivity for LGP 10:10 Classic Oil in the Territory and may not purchase any medicinal cannabis oils with the same or similar active ingredient ratios. Product pricing is fixed with volume discounts. Sana has right of first offer for the distribution of any LGP products under LGP's Global QUEST Initiative.

LGP may pass on 50% of any increases in cost of production above 110% of its production costs as at date of Agreement.