Little Green Pharma Ltd is pleased to announce the signing of a medicinal cannabis distribution agreement with Sana Life Sciences Ltd for the distribution of LGPbranded Classic Oils, Desert Flame flower, and a new balanced flower product currently in development in the United Kingdom and UK crown dependencies. Sana Life Sciences has agreed to distribute LGP-branded oils and flower products in the United Kingdom for a three-year period.
The parties agree to give each other mutual exclusivity in the Territory for the supply or distribution of LGP 10:10 Classic Oil and therapeutic cannabis oils with comparable or identical ratios, as long as Sana meets specific minimum exclusive purchase criteria per year. This agreement marks another step forward in LGP’s EU/UK strategy of marketing LGP-branded products in the UK and EU.
The Agreement represents a key step in LGP’s twin strategy of selling its own LGP-branded sales into the UK and EU while also developing and supplying client-specific white-label strains for clients across Europe, with a potential revenue opportunity of A$1.44m (£820,0001) per year just for the 10:10 oil in the third year, plus additional revenues from sales of the remaining oils and flower ranges.
Material terms of the Agreement
- The duration is three years from the date of first import, with the possibility of an extension by mutual consent.
- Minimum purchase orders for flower products weighing between 10 and 20 kilograms post-ramp-up, as well as 500 oil units each shipment, are required.
- Sana will issue purchase orders to confirm supplies — the first order is scheduled to arrive in late CYQ2 or early Q3.
- To preserve exclusivity for LGP 10:10 Classic Oil in the Territory, Sana must purchase units worth between $431,000 (£246,000) and $1.44 million (£820,0001) every year, and she may not purchase other medicinal cannabis oils with the same or similar active component ratios.
- Product pricing is set, and volume discounts are available.
- Under LGP’s Global QUEST Initiative, Sana has the right to the first offer for the distribution of any LGP products.
- LGP may pass on 50% of any increases in production costs that exceed 110 percent of its production costs as of the date of the Agreement.
Contact us with your feedback and suggestions.