LGP Postpones Scheme Consideration Resolution Amid Outstanding Conditions

Postponement of Crucial Shareholder Vote

Little Green Pharma Ltd (ASX:LGP) has pushed back the shareholder vote on the issuance of new ordinary and convertible shares related to its proposed acquisition of Cannatrek Ltd. The resolution, originally set for April 22, will now be considered on May 22. The delay is intended to allow both parties to satisfy outstanding conditions precedent necessary to proceed with the scheme of arrangement.

While the company and Cannatrek have not flagged any major obstacles in meeting these conditions, the postponement introduces fresh uncertainty around the timing of the acquisition’s completion. Other resolutions set for the April 22 shareholder meeting will still go ahead as scheduled.

Federal Court Hearing to be Adjourned

Following the vote postponement, Little Green Pharma and Cannatrek intend to seek an adjournment of the Federal Court hearing originally scheduled for April 24. This hearing is a key step in approving the scheme under Australian corporate law. The parties have yet to announce the new court date, but have committed to updating shareholders once confirmed.

The acquisition has already secured strong support from Cannatrek shareholders, with over 96% voting in favour of the scheme in early April, moving the transaction closer to Federal Court approval and implementation expected by early May. However, Little Green Pharma’s delay in its own shareholder vote marks a notable shift in the timeline, requiring investors to recalibrate expectations around deal closure.

Implications for Little Green Pharma’s Growth Strategy

The Cannatrek acquisition is a strategic move to consolidate Little Green Pharma’s position as a leading global medicinal cannabis supplier, expanding its footprint across Europe and Australia. The company operates significant production facilities, including the largest in Europe, and distributes products across more than a dozen export markets.

Recent developments, such as the termination of a planned sale and leaseback of Little Green Pharma’s Western Australian facility, underscore the company’s focus on maintaining operational control while navigating complex transactions. The delay in the shareholder vote adds a layer of timing risk to this growth trajectory, though the company’s board remains confident in satisfying outstanding conditions.

Investors should watch closely for the updated timetable and court hearing rescheduling, which will provide clearer signals on when Little Green Pharma will fully integrate Cannatrek. This follows the earlier strong endorsement from Cannatrek shareholders, as noted in the overwhelming shareholder approval that set the stage for the acquisition.