Little Green Pharma : Quarterly Activities Report & Appendix 4C

onlyDECEMBER 2021

QUARTERLY ACTIVITIES REPORT AND APPENDIX 4C

For personal use

RECORD REVENUE AND CASH RECEIPTS FOR QUARTER

LGP'S EU DISTRIBUTION PLATFORM NOW WITH ACCESS TO OVER 60% OF EU POPULATION

REGISTRATION OF FIRST LOCALLY PRODUCED CANNABIS MEDICINE IN DENMARK

Highlights

Company achieves record quarterly revenue and cash-receipts, with ~$3.7 million revenue (unaudited) and $4.9 million in cash receipts

Agreements signed for exclusive distribution partnerships in Germany and Greece, including for medicines produced from LGP's Danish Facility

Granted Denmark's first locally produced cannabis medicine registration, with encouraging first sales in January 2022

Danish Facility prequalifies for Italian government medicinal cannabis tender and submits first bid

Strongly positioned to capitalise on French market, with LGP continuing to be the preferred primary supplier into the French trial with less than a year until completion

Receives unconditional approval of $5.8 million financing facility from National Australia Bank

Receives research and development rebate of $1.9 million

Strong balance sheet with $25.2 million cash in bank

Little Green Pharma Ltd (ASX: LGP, "LGP", "Group", or the "Company") is pleased to provide its quarterly activities report and Appendix 4C for the period ending December 2021.

Head Office PO Box 690, West Perth WA 6872 | T + 61 8 6280 0050 | E [e-mail] | littlegreenpharma.com

Revenue and cash receipts

onlyDuring the Quarter, the Company achieved a record ~$3.7 million in revenue (unaudited), an increase of over 15% from the previous quarter despite the cyclical reduction in sales normally experienced during the holiday period. This represents more than a 50% increase from the corresponding 2020 quarter.

LGP also generated record cash receipts of $4.8 million in the Quarter, even after accounting for the $0.9 million due in the previous quarter which was received in the

usefirst few days of Q2FY22.

personalAustralian patient and prescriber results

During the Quarter, the Company achieved a record number of 117 new prescribers, an average of 39 new prescribers per month. The Company is till awaiting new patient numbers from its wholesalers however anticipates new patients for the Quarter are likely to be lower than the previous quarter given the cyclical slowdown over the Christmas holiday period.

For

International distribution

In addition to supplying Demecan in Germany with close to $750,000 worth of white label medicinal cannabis flower during the Quarter and registering Denmark's first locally produced cannabis medicine, LGP continued its negotiations with a range of other potential key distributors across the EU, the United Kingdom and the British Isles.

Post-Quarter end, LGP signed agreements for the distribution of LGP-branded cannabis medicines with two of these key distribution partners, being AMP Medical Products GmbH in Germany (see ASX announcement dated 19 January 2022) and PharmaServe Hellas SMSACI in Greece (see ASX announcement dated 21 January 2022).

LGP also prequalified its Danish Facility with the Italian government during the Quarter and in January 2022 participated in its first Italian tender, with tender award expected in February 2022. These government tenders represent the sole product pathway into Italy with only a very limited number of suppliers meeting the strict requirements for participation.

LGP continues to be the predominant supplier of medicinal cannabis products to the French Pilot trial (see ASX announcement dated 27 January 2021) which is also currently the only pathway for medicinal cannabis into France. With only a year to the end of the Pilot program and only four producers supplying into the Pilot, the Company has started investing in its post-Pilot positioning and further consolidating its close relationship with its distributor, Intsel Chimos.

During the Quarter, the Company also hosted Medezin Sp. S.o.o in connection with their vendor qualification of the Danish Facility, after the Company successfully submitted its dossier for product registration in Poland for cannabis medicines from its facilities (see ASX announcement dated 17 June 2021).

LGP now has supply pathways into Germany, France, Italy, Poland, Greece, and Denmark, which gives it access to over 265 million EU citizens, representing more than 60% of the EU population, and including four out of the five most populated countries in the EU.

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Registration of Denmark's first locally- produced cannabis medicine

onlyIn November 2021, LGP's "Billinol LGP 16" medicinal cannabis flower was approved for sale in Denmark. "Billinol LGP 16" is Denmark's first locally-produced cannabis medicine since legalisation in 2018 and follows a robust 2.5 years regulatory approval process with the Danish pharmaceutical authorities.

The Company has subsequently agreed wholesaling arrangements with subsidiaries of the two largest wholesalers in Europe, Nomeco (Phoenix Group) and

useTjellesen Max Jenne (McKesson Europe) enabling the supply of Billinol in Danish pharmacies and hospitals, as well as a contract with Movianto to distribute product for the remainder of Scandinavia.

Prescriber interest in Billinol has been relatively strong given LGP is only one of two suppliers in Denmark, with the first Billinol medicines supplied to Danish patients early in January 2022 and the ramp-up of sales exceeding expectations.

personalGMP certification of analytical laboratory facility

During the period, LGP Denmark received its GMP certificate to provide analytical testing services to third

arties. There are currently no GMP certified cannabis testing laboratories in Denmark and a very limited number in Europe. As such LGP has commenced offering

Fortesting services to other Danish and European medicinal cannabis producers.

Online ordering platform with home delivery

LGP has now completed the build of its new Australian online medicinal cannabis ordering platform with its launch expected in the coming weeks. The platform will streamline the ordering and delivery process and reduce delivery times down to 1 - 2 days for patients using an e- script, with products being delivered directly to patients' homes.

Research & Development update

The QUEST Initiative

As of 31 December 2021, the QUEST Initiative and its 100+ participating doctors across Australia had successfully completed baseline recruitment of 3,365 participants. This achievement makes the QUEST Initiative the world's largest longitudinal study investigating the quality of life and health economics on patients with chronic disease who have been prescribed medicinal cannabis. LGP expects the study findings will produce independent, clinically valid, real-world quality of life and health economic analysis to help guide LGP's product development pipeline.

In line with its protocol, the QUEST Initiative has now ceased recruitment, with interim study findings expected to be available mid-2022. With the success of the first QUEST Initiative, in December 2021 LGP submitted for ethics approval for an expanded Global QUEST Initiative with recruitment expected to commence in Q3FY22.

Clinical Studies

During the Quarter, results from the LGP Classic 10:10 refractory pain study were accepted for publication in the peer-reviewed journal, "Medical Cannabis and Cannabinoids". These results represented successful clinical validation of LGP's Classic 10:10 product and comprised highly relevant clinical findings, given the patient cohort comprised cases where existing medications, including opioids, NSAIDs and steroids, had failed to provide relief.

Successful pre-submission meeting with TGA for Schedule 3 registration

On 21 December 2021, the Company held a pre- submission meeting with the Therapeutic Goods Administration (TGA) during which it successfully presented its clinical trial strategy for its proposed Schedule 3 CBD medication. Based on this meeting, the Company now has a clear understanding of the pathway to product registration.

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onlyRegulatory update

On 18 January 2022, the TGA formally updated the medicinal cannabis industry on its implementation program requiring all foreign cannabis suppliers to

c mply with Australian Good Manufacturing Practices (GMP) standards when importing medicinal cannabis to Australia. The TGA has confirmed the regulatory change will come into effect from March 2022, with a yet-to-be-

useconfirmed transition period for non-compliant suppliers. With both LGP's Australian and Danish facilities being GMP certified, these positive changes for patient safety hould result in reduced competition for the Company from low-cost unregulated jurisdictions.

personalPsychedelics business update

During the reporting period, the Company's psychedelic ubsidiary was renamed Reset Mind Sciences Limited and finalised the design of a stand-alone grow room for psilocybin mushrooms, with construction to commence imminently.

Planning also continued for a West Australian based clinical trial into psilocybin assisted psychotherapy, with the trial currently in protocol development phase. The Company has received an import permit from the Office of Drug Control for synthetic psilocybin to be used in the trial.

For

Quarterly financial highlights

During the Quarter, the Company generated revenue of $3.7 million (unaudited) and cash receipts of $4.8 million.

The key cash flows during the Quarter included:

• Customer receipts of $4.9 million;
• Receipt of R&D rebate of $1.9 million;
• Capital expenditure of $1.2 million associated with the GMP facility expansion in Australia and lighting and automation equipment in Denmark;
• Increased power costs associated with the Danish facility due to an increase in the electricity spot price; and
• Increased product dispensing costs associated with increased cash receipts for the Quarter.

Related party transactions during the Quarter comprised $0.2 million in remuneration and allowances paid to the directors of the Company.

The Company has also received unconditional approval from National Australia Bank for a $5.8 million financing facility, which comprises a $3.8 million finance facility secured against its WA production facilities and a $2.0 million equipment finance lease subject to finalisation of loan documentation.

In the coming quarter, LGP anticipates continued growth in sales, ~$1.5 million to complete the Company's planned capex programs across the group and a reduction in opex costs as operations in Denmark are automated and right sized.

The Company finished the Quarter with cash of $25.2 million. Given the above anticipated cash flows and limited remaining capex expenditure the Company expects to be in a strong position to fund further sales and marketing activities in the current and future quarters.

The Company completed its IPO in February 2020 and in accordance with the ASX Guidance Note 23, Appendix One to this report sets out the use of funds since admission to the ASX.

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ENDS

For personal use only

BY ORDER OF THE BOARD

Alistair Warren

Company Secretary

For further information please contact:
Alistair Warren	Fleta Solomon
Company Secretary	Chief Executive Officer
Little Green Pharma	Little Green Pharma
E:[e-mail]	E:[e-mail]
T: [phone]	T: [phone]

About Little Green Pharma

Little Green Pharma is a global, vertically integrated and geographically diverse medicinal cannabis business with operations from cultivation and production through to manufacturing and distribution.

The Company has two global production sites for the manufacture of its own-branded and white-label ranges of GMP-grade medicinal cannabis products, being a 21,500m2 cultivation and 4,000m2 GMP manufacturing facility capable of producing over 20 tonnes of medicinal cannabis biomass per annum located in Denmark (EU) and an indoor cultivation and manufacturing facility located in Western Australia capable of producing ~3 tonnes of medicinal cannabis biomass per annum.

Little Green Pharma products comply with all required Danish Medicines Agency and Therapeutic Goods Administration regulations and testing requirements. With a growing range of products containing differing ratios of active ingredients, Little Green Pharma supplies medical-grade cannabis products to Australian, European and overseas markets.

The Company has a strong focus on patient access in the emerging global medicinal cannabis market and is actively engaged in promoting education and outreach programs, as well as participating in clinical investigations and research projects to develop innovative new delivery systems.

For more information about Little Green Pharma go to: www.littlegreenpharma.com

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Head Office PO Box 690, West Perth WA 6872 | T + 61 8 6280 0050 | E [e-mail] | littlegreenpharma.com