Federal Court Greenlights Little Green Pharma's Cannatrek Takeover

Federal Court Approval Confirms Acquisition

Little Green Pharma Ltd (ASX:LGP) has crossed a critical legal hurdle with the Federal Court of Australia approving its scheme of arrangement to acquire 100% of Cannatrek Ltd. The court order was lodged with ASIC on 25 May 2026, officially making the scheme effective and cementing LGP’s control over Cannatrek’s issued capital.

Next Steps for Scheme Implementation

The acquisition’s implementation date is set for 1 June 2026, when Cannatrek shareholders will receive their scheme consideration. The record date for determining entitlements was 7:00pm Melbourne time on 25 May 2026. This timeline aligns with previous announcements that had anticipated early June for completion, following shareholder approval and court clearance.

Strategic Expansion in Medicinal Cannabis Markets

The acquisition expands Little Green Pharma’s already significant footprint across Europe and Australia, adding Cannatrek’s assets and operations to LGP’s vertically integrated medicinal cannabis platform. LGP operates three production facilities, including Europe’s largest, and has a strong presence in key markets such as Germany, France, and the UK. This deal is expected to enhance LGP’s scale and product offering in a sector experiencing robust global demand.

This move follows a period of strong revenue growth for LGP, which recently reported a 15.3% increase in FY2026 revenue to AUD 42.5 million driven by European sales, despite a modest loss after inventory write-downs. The pending merger with Cannatrek is anticipated to reshape the company’s market positioning and operational capabilities FY2026 revenue climbs 15 percent.

Regulatory and Shareholder Milestones Met

The Federal Court’s approval follows overwhelming support from Cannatrek shareholders, who voted in favour of the scheme earlier this year. The court also granted exemptions from certain statutory compliance provisions, smoothing the path for the transaction. The orderly progression of approvals and timetable adjustments, including a delayed court hearing to 25 May, reflect careful navigation of legal and regulatory requirements court date rescheduled to May 25.

With the scheme now effective, attention will turn to integration efforts and operational updates once the scheme consideration is issued. LGP has committed to providing further information on the combined entity post-implementation, signaling an important phase in its growth trajectory.