Little Green Pharma Ltd (LGP.XA) Earnings Call Transcript & Summary

Good afternoon, everyone, and welcome to today's Little Green Pharma Investor Webinar. My name is David Tasker, and I'll be your host today. We're joined by Paul Long, Managing Director of Little Green Pharma, who will present on the proposed merger with Cannatrek. Paul will walk through the strategic rationale for the transaction, the pro forma financial profile of the combined group and the key synergy opportunities across Australia and Europe. And importantly, the structure and timetable for the proposed transaction. We will finish with a live Q&A at the end, so get your questions ready and submit them using the Q&A button at the bottom of the screen. Paul, I'll now pass over to you to run through the presentation, and I will see you at the end.

Brilliant. Thank you, David. Just confirming. You can hear me?

Yes, we can.

Brilliant. Excellent. First of all, thank you to everyone for joining today's presentation. Certainly very exciting news for Little Green Pharma and the broader industry. David, I might get you just to jump down to the executive summary slide. That's the one. So as for those of you listening today that are familiar with the little green farmer strategy, Pillar 3 of our strategy has always been Well, certainly, for the last 18 months to 2 years has been focused on consolidation in this market. We successfully rolled in Health House about 18 months ago now, and that transition inside the business has been a great success and a really good learning opportunity for us moving forward. And this next big news around a merger with Cannatrek, it's one in which that has been working in the background for a long time and the synergy is well known and the opportunity well known. So it's really exciting to be able to be sitting here today to be talking about this. But ultimately, what this means is the coming together of 2 of Australia's largest and most successful with these new cannabis companies. And it will create what will be 1 of the largest pure-play medical cannabis companies globally and certainly here in Australia, which will bring a significant competitive advantage. And I'll certainly expand on the strategic rationale a little bit later in this presentation. So the structure of the deal is that Cannatrek holders will receive new Little Green Pharma shares, and it will be based upon an implied value that gets them to a 60.5% ownership, and Little Green Pharma existing holders with a 39.5% ownership split, and that is subject to a continued contingent value share, which this ultimately covers any unquantifiable or undetermined liabilities and this importantly will swing both ways over a period as well. Thanks, David. So I guess the question, why now. And certainly, as I mentioned just before, it has been a focus for a long period of time. And one of the things I have been talking about to the market is if we zoom out of the medicinal cannabis industry and look at our industry, like any other industry that evolves from this early stage where you get growth and those entrepreneurial businesses, and then you get a bit of a flattening off and you go into this in this difficult period. We believe that we're in that period at the moment. It's the consolidation and shake up period of our market evolution like any other industry. And we do believe this is beginning to mature and this step for Cannatrek and Little Green Pharma is a significant step in that direction. Like any mature market, as it scales, we tend to find to companies capture 60% to 80% of the total value in the market, we could see that across every industry that's in a mature, stable market. And so while the additional cannabis industry is still highly competitive, but we have a long tail of competitors in it. that we're trending towards this pathway and that we are one of the leaders now in that space. And look, ultimately, what we do find is that the more mature players in any other market, and it will be the same for ours will favor companies with a deeper balance sheet, lower margins and integrated supply chains, which we'll be able to now capture and abandon those a little bit later in the slide. Thanks, David. So a little bit of about Little Green Pharma. Most of the people today would know a bit about us. But firstly, our financial performance has been relatively strong in the last number of years. So our last financial year, we recorded a $36.8 million revenue, which was approximately a 40% top line revenue increase, and we had an adjusted EBITDA of $2.9 million and a cash position of $2.4 million. The business itself has now a range of products that sit in multiple categories within the industry, particularly the Australian market as we look at the Australian market, whilst we operate within the framework of a medical environment. We understand that there are different parts of the market that require different price points, different products, different branding. So that's why we have such a large portfolio of products. We have now 4 facilities across the globe. And for those that don't know, one of our large -- our largest facility is a site up in Denmark. That site is capable of producing up to about 20 tonnes of final finished flower. We're currently edging towards using 50% of that capacity. We purchased that site off Canopy a number of years ago, a large international company, they had invested up to about $120 million in that site. We purchased the site for $20 million. we now own that site almost debt-free on our balance sheet. So not only the site but the farm mix or in the 2 houses, which really underpins a position of business. We have a large-scale distribution not just in Australia as a company. We've been very, very focused on opening doors into new emerging markets, in particular, the markets that excite us in our strategy are those that have very, very high levels of quality expectation and pharma grade dossier submission. So countries like Poland, France and Spain, and I'll talk a little bit more about those today, have been a big focus for the company. So in some ways, that stretched us a little bit in a business that has been in an industry that's been difficult to find. Cash flow, that has been a challenge, but it's one of the biggest synergies, which I'll talk about in these 2 businesses is what Cannatrek brings to us is something we perhaps haven't quite been able to capture in the Australian market. but it will deliver us the ability to unlock that European opportunity. Thanks, David. So a little bit about Cannatrek there. They have been, as I mentioned before, an industry leader from day 1 and certainly one of the first companies to bring products to the Australian market. They've got a licensed manufacturing site on the East Coast and a big team, a highly effective team on the East Coast of Australia. We'll just up to the next slide there. So we've got 2 sites, the Shepparton site, which is a GMP packing side and the Queensland distribution site. They've got a head office in Victoria with approximately a team of about 80 staff. They've got a national distribution model across a lot of the primary wholesalers across Australia and leading market products that have been able to really drive significant market share in the Australian market. And if we can attract that has solely been their focus. So in financial year 2025, they produce a $75.5 million revenue year with a $10 million EBITDA. They have a broad portfolio of products, but one of their key hero products is a flower product called [ Topaz ] that product is the number -- has been and continues to be the #1 selling product in the Australian market and by a long way. So the second largest product in the Australian market behind Topaz is 50% of that volume. And we're talking a product list now as long as approximately 1,500 products in the market. So Topaz a hero product has really has been -- has underpinned the business. But having said that, the Cana trite team have done an incredible job in building out a really strong and well-rounded portfolio, and they've got some other really interesting products coming through at the moment as well. So I think for Little Green Pharma, again, the strength that we see and we've seen in Cannatrek, and I'll talk about the rationale and synergies later. But as we've gone through the process of -- before we've announced Pivotal today over a number of months, we've really got to know that the team inside Cannatrek and the strength and the quality of the team has been absolutely imminent. And the presence on the East Coast has been another thing that's been perhaps a little bit lacking, with Little Green Pharma being a WA-based business. So some brilliant synergies on team, but also products there as well. Thanks, David.. And next one. Okay. So touching base on the rationale. I think firstly, for Little Green Pharma, as I mentioned before, $36.6 million revenue for our last financial year. this combination will 3x our revenue. The pro forma revenue based upon financial year '25 numbers will be $112 million. This will also be a bit of a breakout as a rationale for our EBITDA profile. So whilst we had a $2.4 million EBITDA last year, the combination pro forma will bring $13 million for -- and that's before we add on the growth for financial year '26. And of course, the synergies that we expect to see inside the business as well. The rationale around, as I mentioned before, the ability to unlock opportunities in EU is significant. So the cash flow as those that would have -- that have followed this merger closely, Cannatrek will be bringing $13 million of cash to this deal, and that will enable us to significantly unlock those European opportunities. So the countries where we -- in Pillar 1 of our strategy are focused on those fast-moving markets, Australia, obviously being one, but in Europe, it is the U.K. and Germany. And whilst we've had some success in leveraging primarily through white label into the German market and a little bit into the U.K. market. We've scratched the surface on pushing our own brands in those faster mover market. So -- and that has been, in many ways, been a limitation on capital to really build out a team and drive our own brand as we do in Australia. So this synergy and rationale will enable us to really scale up that growth inside the market. Another rationale would be the vertical integration, and that will capture margin all the way through our supply chain. At the moment, that margin, on the Cannatrek side, they're largely purchasing flower. They are entirely purchasing player from a third party. So whilst a large percentage of that will continue to happen out of their Canadian partners. There is a number that they purchased or elsewhere, where we will be looking for opportunity to rationalize that and bring that inside our supply chain. So what we'll be able to do is capture margin at a cultivation level. And then on the flip side, for Little Green Pharma, we currently outsource some of our manufacturing. So we'll be able to transport that across to the Shepparton facility and capture another layer of margin through that process as we bring that supply chain all in-house. And I guess the other rationales as we look. And we think about the team and the management is the opportunity for -- to bring together a combined management team that have a track record of consolidation. So we know the Cannatrek team have also made an acquisition of very successful smaller business, hay day inside this market, and that has been very successfully integrated inside the Cannatrek team and as I mentioned before, Australia with the Health House team. So we bring that team that believes consolidation is happening, has track record in pulling multiple companies together. And one of the most important things is this real discipline about around financial management. And we are still in a -- perhaps a largely cottage industry at the moment where the industry is perhaps not as disciplined as it could be in driving shareholder return, EBITDAs and top line growth. So for us, this combined team, really, we believe will be best-in-class. Thanks, David. So I've spoken a little bit about the pro forma that you'll see on the screen here. So pro forma revenue for financial year 2025, $ 12.3 million will be combined adjusted EBITDA of $ 13 million operating cash flow of $6.6 million at a cash position of $14.9 million. And importantly, a net tangible asset of $136.7 million in Little Green Pharma's case, as I mentioned before, that is largely backed by property, both in Europe and in Australia. And it's important to note that these pro forma numbers from last year, we would expect to see greater numbers in the financial year 2026 growth. We would also expect to see some significant savings through synergies, as I mentioned before, and bringing that supply chain in. So certainly an exciting financial outlook for 2026 and beyond. Thanks, David Thanks. And the next one. Key transaction terms, I've really been through perhaps the overview and some of the consideration in CV shares. The important thing to note in this deal is that we do have unanimous director support inside the business, which was great, but also the voluntary escrow is one in which is important to just add a little bit of commentary on. So on the Cannatrek side, all shareholders with greater than 1.5% equity in the business have agreed to an escrow. On the Little Green Pharma side, board investments and myself have agreed to the same escrow. So this will ensure that we hopefully have a bit of a soft landing when the business has come together and a testament to the bigger picture and the support of the deal that we had with all our large shareholders support the deal and agreed to voluntary growth. Thanks, David. indicative timetable, you can see that on screen. I don't want need to step you through the detail there. Obviously, the implementation date we're targeting, you can see is the 1st of May. And we are on track at the moment. And while we expect to see a few of those dates to move slightly on the way through, the good news is we're well on track for first of May implementation date. Thanks, David. Look, I think finally, this slide just tries to capture the big 3 cases in point around why this merger makes sense, but it is a validation of a strategy around consolidation for the reasons I mentioned before. the value creation that we see in the combined businesses, both in pulling our supply chain in and capturing margin but also unlocking hitting capital and cash flow inside the business to unlock future growth and rapid expansion into the European market is significant. And again, that vertical integration. And probably the key point on that last one for us is we do have a 20-ton site, as I mentioned before, up in Europe currently utilizing only 50% of that. So our ability to scale into the Cannatrek brands and our combined growth into Europe is there, and we can continue to capture the margin. that side up in Denmark is just a 2-hour drive from the biggest market, the biggest medicinal cannabis market in the world being Germany. Thanks, David. I've got a couple of slides as well. If we have time just to summarize our most recent quarterly as well, which we just released. So it was a solid quarterly, as you can see on the graph there, our total revenue of $10.7 million was actually a record revenue. What you can see in that top graph on the right-hand side is the expansion of the European of our business, and we've been forecasting this for a long time. At Little Green Pharma, we've been investing heavily over a number of years into really trying to build out that part of the business. So if you look at the annualized revenue on the bottom graph, you'll see that the light blue section there is significant -- is a significant growth and increase from what we saw in FY '25. And then obviously, with the synergies, we've spoken about the opportunity in bringing Cannatrek in, we expect in FY '27 to be able to scale that up significantly as well. Thanks, David. I'll touch just really briefly on some of our key markets. I spoke about the 2 pillars being Germany and the U.K. as our fast mover markets, along with Australia. The German market has continued throughout the last 12 months to have very, very strong quarter-on-quarter growth. We have been able to capture some significant growth in through our third-party white label solutions into that German market. It's important to note there are some regulatory headwinds within the German market as that progresses, but we still believe that there's a solid market ahead and a significant opportunity. The U.K. market is a little bit behind the German market and the Australian market. So we see significant opportunity, and we've been actively targeting the private clinic market that serves 60,000 to 65,000 patients in that current market. And again, the capital we will bring to the combined deal will enable us to bring actually head count on the sales front to really drive Little Green Pharma brand into that market. David, on the next slide. I'll briefly touch on Spain and France. So the Spanish market is one that looks to be following the French market and the time line looks to be -- to be on track with registration -- the opportunity to submit registrations are happening now. We do have a small investment in the group in Spain, and we'll also be looking to submit our dossiers into that market in the coming months. The French market for those who have followed us have been 1 that we've been excited for a long time. We've been 1 of only 2 companies to be a part of the latter stages of a trial run by the French government. That this year, so this calendar year, we expect that to open up into a full medical market. The interesting part about the French market is that it's likely to be a fully rebated market. So the cost of patient will be fully rebated and the prices will be set and fixed by the by the French government. So that ultimately builds a really interesting competitive mote. And we think about that scale of around 65 million people, a significant opportunity. And whilst we don't see we will see significant CAGR growth, but we don't see huge numbers to begin with, but it will be a soft base. And primarily, that will be specialists prescribing only not GPs and certain conditions and within hospitals as well. So that will likely slow down. Sorry, the other thing is flower, there'll be no lower prescribed to begin with, so just other formats. So we've got a really interesting opportunity to be a first mover and open when that market opens up. But we do believe that competitive might for the reasons I mentioned before, will give us a long-term competitive advantage. Thanks, David. I think this is the last slide from my side, from my end before we go to Q&A, David. But I briefly spoke about this sort of early growth phase on the left-hand side of this graph before, and this follows a typical Gartner curve. And so we do believe that we've been in this sort of shakeout phase that we see there or otherwise known as the trough of disillusionment. And the trend on where this market will evolve is not something that's specific to municipal cannabis is something that occurs that we see in across industry. So we believe that we are trending now into this growth phase, shakeout and consolidation perhaps at the back end there put a question mark there over the rescheduling in the U.S., the executive order announcement we will see some changes this year, hopefully come into place and then it will set probably likely for next year. But that will likely change the rhetoric in the talk globally for our industry. And obviously, through consolidation, we're starting to see some of those major companies or major brands really starting to stand out as we head back into that slope of enlightenment and a growth phase into more of a mature market. Thanks, David.

Thanks, Paul. Great overview. Now we do have a few questions, and I would preface the questions with us. This is a proposed transaction moving through essentially a legal process. There may be some limits on questions that can be asked, but we'll get through as many as we possibly can, and we'll answer them or Paul will answer them as directly as he possibly can. But if we need to take some off-line, we will. There is a question here that has come through from a shareholder, which talks about as initial and long-standing shareholder. When do you think the company may generate this type returns that shareholders are hoping for, whether that be share price appreciation, maybe dividends or something like that? And is this proposed transaction deliver that opportunity faster?

Yes. Look, we do believe that, that is the case. We wouldn't be as a unanimous board agreeing to being a transaction that makes sense unless. We thought that was the case. So we acknowledge that share price has been a challenge for us and the broader industry for a long period of time. We do -- if we sit back and look at the fundamentals of our business at the moment, we say, well, we've got $75 million plus in net changeable assets with a business that last bit year grew top 1 40%. We're one of the early movers into 3 or 4 or 5 European markets with blue sky growth opportunity and likely to be 20% to 30% CAGR growth in those markets more broadly. And so we do believe at the moment, we're being very much undervalued, particularly with that net tangible asset position. However, we understand that it's a difficult market and the capital markets at the moment have been or historically for the last 6 to 12 months. We've just been focused on mining in gold and silver and rare earth, perhaps that's changing in the last few days, we've been some change there. And so for us, what's been really important is that let's ensure that we don't need to go back to the market, and we've been actively focused on getting to EBITDA -- positive EBITDA cash flow provision as a business to ensure that we're not diluting our shareholders in this market, and we've successfully been able to not achieve that through the last 18 months. And that has put us in a position where something like this does actually make sense. And if you look at the pro forma slide we mentioned before, to $112 million pro forma FY '25 $13 million in EBITDA and then you add some growth to 2026, and then you add some synergies to those numbers. And then if you started to say, okay, if we're going to value this business as a multiple of an EBITDA number, and I'm certainly not going to put out future EBITDA numbers in this presentation, but you can probably do the math, if you're a shareholder looking at what could they get it to -- and if you look at the average being a 10x EBITDA, what would that sort of market cap do for our business. So the good thing about that for those shareholders on the line is that, that is a normal way of valuing the business and it has -- it will have some significant upside we see inside the market. So yes, sorry, long response to that question, but we firmly believe that the case.

Another one has come through, and I'll paraphrase it because it's quite a long question, so I'll paraphrase it. So you've clearly been a company that's looked at consolidation over a long period of time. And I think as part of that would have tracked everybody out there to see what they're all up to the different stages in their various evolution cycles. And it's -- and the point that's been made here by our shareholders, it's fair to say that Cannatrek has evolved itself over a period? So the business that was Cannatrek, maybe 2, 3, 5 years ago is vastly different to the business that is there now? When did that evolution sort of click for the Board of LGP to go, right, now we're ready to have a chat? And how important was that evolution to be able to bring it into the sites of doing a transaction such as what's been proposed?

Yes. Look, I think the history of Cannatrek, like I said before, there have been one of the early movers. They were very, very successful in bringing new products that were unique and obviously, that hero product in Topaz. But I think the industry as a whole and the conversation around consolidation has only been one that's been really live for the last 12 months. And for most of that, we've been in conversation with Cannatrek. Like all things, in consolidation, there's lots and lots and lots of conversations and more often, 95 out of 100 often just don't evolve. And one of the first things that I look at and we look at is there a cultural fit between the businesses and the evolution of Cannatrek. In particular recently, they've got a new Chairman involved a new fine CFO involved, and they have come from -- out from a separate industry into Cana track and they've brought real clarity and focus on financial discipline to that business, and they've seen great success with that approach. And so that was a really, really good cultural fit when we met the team and we understood their strategy with our strategy, how well length when we look at products and portfolio mix at length when we look at synergy opportunities, it was aligned. So it's probably not that often that you would get that level of synergy on the way through. So that's been exciting, and I think it represents a significant opportunity.

You touched on cost discipline, particularly in the Cannatrek business, and that has generated significant returns to their business. Looking forward, is for both the combined businesses, and I know you don't want to give forecast, but is cost discipline going to be a key? Or does it now switch to a mixture of cost discipline, but really starting to turbocharge growth -- the answer will be both.

Absolutely. I think the -- and we'll need both. I think in this industry, making sure that we are absolutely crystal clear on our expectation of gross margin and EBITDA will be critical inside the business. Managing our costs will be critical inside this market. but the cash flow that we produce inside the business for at least the short to medium term will be focused on growth opportunities. So those unlocking those European markets, the fast-moving market and those early mover markets to ensure that we can capitalize on that. but also there's some investment opportunity in the Denmark facility, it's not significant, but the opportunity to scale that site just to the next level. It is an absolute world-class site, the best in Europe, but with a little bit more of an investment in that site. Could we increase the quality, could we increase the yield yet is yes and yes. And so there'll be a small amount of investment there, but the large investment will be heading towards the growth opportunities, but the discipline around targets, budgets, finances and keeping everyone accountable to execute on that won't change for the business. So I think the combined business will be even stronger.

Just touching on growth, what are the growth options for the combined business in Australia?

Look, we don't -- the Australian market certainly has been a little bit flat. We don't expect to see double-digit growth in this market. The landscape is still very competitive. -- but growth opportunities, I think, will be further consolidation, and that might not just be active consolidation of 2 successful businesses, there may be competitors out there that are struggling and looking for an opportunity to join. But I think the other interesting thing around the opportunity in Australia for growth is the combined offering we now have between the Cannatrek products, the Heyday products and the levering pharma brands, including [ Cherry Co. ], we believe is kind of covering a lion's share of what the doctors and patients are looking for. And so that, whilst we think the top line Australian market is not growing double digit, we're still pretty optimistic around our opportunity inside the Australian market.

And what about growth across Europe? You touched on it in your presentation, but what do you think that looks like? Is that organic growth, as you've touched? Or is it again looking -- it out looking for opportunities?

Yes. So the -- I think it's the data breed market research points to about a 33% CAGR growth through to 2032 for Europe as a whole. Look, I think conservatively, if you looked at the German market, we would sort of expect that to be maybe in the low 20s. There are some regulatory headwinds I mentioned, but compound growth of in the low 20s roughly. The new market, U.K. market may be more towards the high 20s. And so I think if we can be positioned really well there to be capturing that growth. And the rest of Europe will be a significant growth rate. So if we look at the French market, there's only 3,000 patients on the trial. Best guess next year if we go conservative might be 5,000 patients that are now accessing it through the medical pathway through a specialist. Now that's a significant growth from 3,000 to 5,000, but obviously, off a lower base. So we have a slightly dual-pronged approach to the way in which we look at growth inside Europe, and we'll certainly be investing in a way to capture different parts of those markets.

Touching on marketing and sales, in particular, what does the combined business look like in that area? And will there need to be an investment in people to go after some of these opportunities, particularly in Europe?

Yes, no doubt. Yes. Yes. As I mentioned, part of perhaps our frustration has been our limited ability to invest capital into the EU market. So we gained early mover advantage. And we've done what I think our team have done an incredible job our commercial team and our operational team in Europe to capture the growth you saw in those earlier slides. But yes, I mean, the way we turbocharge growth is through an acquisition of great talent on the sales and marketing side. So that will clearly be part of the strategy.

And I know we've talked about Australia, we've talked about the EU. The U.S. market, obviously very competitive in all ways, but is that an opportunity to look at? Or is it bedding down what you've got in the foreseeable future?

Hasn't been on our radar at Little Green Pharma. It's certainly not something that we've sat down with the Cannatrek team to say, do we actively want to bring products into the U.S. market at this stage, the recreational market is a very different beast to the medical market. So we've stuck within our swim lanes of the medical market for now, albeit always keeping an eye on the recreational market as all markets evolve. And so the medicinal side makes a lot of sense for us. We think that we're we've got a competitive advantage against those U.S. companies that are very much focused on the recreational side. We are keeping a pretty close eye on the on the medical market in the U.S. And obviously, if the policy changes and as the policy changes and gets down scheduled, then just keeping half an eye on an opportunity up there to see if there's a medical pathway given the layer of quality and pharma grade information that we can bring to a medical market, perhaps there could be an interesting opportunity. But it's kind of -- it's certainly not on the top of our priority and something that will be sitting down as a combined business to review later this year.

I don't want to think too far ahead, but the question is here in relation to consolidation, you've spoken very proactively or spoken about how proactive Little Green Pharma has been in this area. Assuming the proposed transaction goes through in Cannatrek and Little Green Pharma join and create a formidable business in Australia and into the European market, does that create an opportunity for the combined business? Or is there now a threat that you're all going to be looked at as potentially being part of that consolidation mix from some of the players trying to get into this market or the EU market?

I think both, David. I think we're ultimately a business that as a combined Board will be looking through the lens of what's best for all shareholders, and that's as directors, that's our job. And so if that opportunity is to be a part of something bigger, and we drive really good shareholder return to do that, and we believe that's what's right for shareholders, then yes, I think we'll look at that opportunity. But I don't think that's a now thing. I think for us, it's continuation of smart consolidation. This will be a big integration process. So we've got -- as I mentioned before, there's been a lot of water under the bridge to get to where we are today. Very, very confident in synergy, absolute confidence on execution and the time line we spoke about. But certainly, 1 of the conversations we'll be having is what's next and what makes sense for us and what are the bolt-on opportunities do we see both in Australia and abroad. And then if the time comes, that there's a real global consolidation and perhaps some of the big U.S. players looking for a solid position inside Europe and rest of world, then yes, if that's in the best interest of our shareholders, that will be something I'm sure the Board will have a look at.

On personal note, you've looked at lots of companies, no doubt, a lot of companies have looked at Little Green Pharma, and you and the Board have driven a lot of success with Little Green Pharma in recent history and a really tough market. How excited are you with this proposed transaction?

Very excited. Yes, I think part of the frustration for all of us as shareholders have been a bit of a stagnant market as we've gone through a difficult period. So for me personally, I think the opportunity to really scale up inside this market is exciting. I think the new -- except some of the new senior team members, I mentioned before, bring a really fresh set of thinking to this industry and obviously, the opportunity to actually execute. We've done the hard yards we've done up in Europe is in 5 years of deliverables. And so now the opportunity to really turbocharge that is something exciting for the team.

Thanks, Paul.

Thank you. Thanks, everyone, for joining. Appreciate your time.

Yes. And thanks, everyone, for joining us today. And as discussed, the proposed Little Green Pharma -- Cannatrek merger represents a significant step change in scale, profitability and global positioning. And today's session was intended to give you a clearer understanding of the strategic logic underpinning this transaction. Further information, including the scheme book that will be provided to shareholders in due course and investors are encouraged to review the ASX materials in all. On behalf of Little Green Pharma, thank you for your time today and asking your questions and showing your interest. This does conclude today's webinar. Thanks, everyone, and have a great day.