Western Australian medical cannabis company Little Green Pharma (ASX:LGP) has agreed to acquire 100% of Victoria’s Cannatrek’s issued capital.
The proposed acquisition will be implemented via a scheme of arrangement between Cannatrek and its shareholders. Shareholders of Cannatrek will be asked to approve the Scheme at a meeting expected to be held on 2 April 2026.
The move will see two of the largest medicinal cannabis companies in the Australian market creating an international, vertically integrated medicinal cannabis business; one of the largest pure-play medicinal cannabis companies globally according to the announcement.
LGP notes its Denmark-based facility is the largest medicinal cannabis production facility in Europe and currently operating with excess capacity available to support Cannatrek products bound for our shores as well as Europe. The site, acquired in 2021, includes 21,500 m² of cultivation area and 4,000 m² of post-harvest manufacturing space.
It’s estimated the Combined Group will have consolidated cash of ~$14.9 million and net assets in excess of ~$136.7 million resulting from the merger.
Commenting on the move, LGP’s Managing Director Paul Long said:
“Cannatrek is one of largest and most successful medicinal cannabis companies in Australia, boasting a highly attractive product portfolio, diversified, vertically integrated business, robust balance sheet, and strong cash and EBITDA generation; and presents a wide range of potential synergies and growth opportunities for the Combined Group.”
Cannatrek’s Chair, Brent Dennison, said the merger will assist the business in achieving the substantial growth potential Cannatrek has in LGP’s European operations.
“I anticipate that with the platform this merged entity creates, we will be active in the ongoing consolidation of the global medicinal cannabis market,” he said.
Little Green Pharma was founded in 2016, and in 2018, launched Australia’s first locally grown cannabis medicine. LGP claims to be the one of the top three suppliers in Australia, the largest supplier into France, and a significant supplier into Germany and the UK.
Victoria-based Cannatrek was launched in 2015 after being propelled by a community-led movement. Tommy Huppert is the founder and Chief Executive of the company. In 2023, the firm secured Good Manufacturing Practice (GMP) accreditation for its Shepparton facility in regional Victoria.
