Little Green Pharma Ltd ($LGP)

Good morning, everyone, and thank you for joining us today. My name is David Tasker from Chapter One Advisors, and I'm pleased to welcome you to today's webinar for Little Green Pharma. Joining us today is Managing Director, Paul Long, who will present the company's March 2026 quarterly results and provide an operational update before opening the floor for Q&A. [Operator Instructions] As always, I'd remind attendees that today's discussion may contain forward-looking statements, so please refer to the company's ASX announcements and disclosures for further detail. Without further ado, I'd like to now hand over to Paul Long, who will run through the formal presentation. Paul, over to you.

Thanks, David, and good morning and good afternoon, everyone. Thank you for joining. Okay. We'll just jump down to Slide 3, please, to kick off. Great. So just a quick update on this slide. I think we reported last time that we scaled up into another room, giving us a capacity of now up to about 8 to 10 tonnes as we continue to see the growth into the German market. So that's all been progressing really well at our Danish site. We've also had some really promising increases in some of our R&D for new genetics coming through the facility, in particular, some really high-yielding genetics, which obviously, if we capitalize on the opportunity through the correct yielded or the high-yielding genetics in our facility, it has a big impact on our production capacity. So some really promising results coming through there. And then, on the brand front, a big focus at the moment, given what we've seen, and I'll talk a bit more in today's presentation about the growth that we've seen, particularly into the European market, which is really exciting to see after a big focus over many years to execute on that. We'll be focusing quite heavily on the LGP brand portfolio, in particular into the U.K. and German market, but I'll expand on that in today's presentation. Next slide. Thanks, Dave. So exciting to see on this slide that the overall growth for the quarter. So you can see there that our cash receipts were record -- a record amount for the quarter up to $13.2 million and our total revenue of $12.5 million. So, a record quarter all around, which really gave us a solid end to our financial year '26 finish, obviously, unaudited at this stage, but a total revenue unaudited of $42.4 million for the year, which also represents our highest year and an increase of 15% on the year before, and a compound annual growth rate now we've seen over the last 4 years of over 30%. So yes, we're really, really thrilled with the end to the March quarter. And yes, it's exciting to see the return from the growth, in particular, from the European market. One thing to note there is that March itself was a record month by quite a long way. So we had an unaudited number of $5.7 million revenue just for the month of March. Some of that's been timing, but it was a very, very promising month. Thanks, Dave. So this slide, we're having a look at our revenue by category. So we can see here that flower and oil continue to dominate. The vaporizer and edible parts of our product category are certainly areas that we see opportunity, in particular here in Australia and in some of those emerging markets. So, for the quarter, our flower sales were strong, so a $10 million unaudited figure, which was up 40% on the prior quarter. I'll expand on why that is the case in subsequent slides. We have continued to see a bit of a decline in our oil sales. However, I will note that the prior quarter, we did have a one-off -- not a one-off, but we did have a large shipment into France, which had an impact, but we do foresee that we're now moving more towards a balanced approach from what we would expect from flower to oil in this market. And we have seen in the Australian market, a pretty significant increase in the -- in particular, the edibles or [indiscernible] part of the market, so definitely an opportunity for us and our product team. Thanks, David. Okay. If we have a look now at revenue by segment, so the top bar graph there, we can see that for the first time ever, we had a larger quarter inside our European operations than the Australian operations. So, as I said off the start there, something that, as a business, we've been working incredibly hard at for a number of years to enable growth inside that market, to expand our Danish operations, and really [ thanks to ] the decision that our Board and our executive made to acquire the Danish site some 4 to 5 years ago now. And so, we've continued to see a gradual growth. We did predict that at some stage, around about now or maybe in the next 12 months, we would see the European sales begin to increase above the Australian sales. Perhaps slightly ahead of what we thought. We did see and we are seeing a bit of a contraction inside the Australian market. We saw that in the quarter. And in fact, you can see that now in the FY '26, bottom graph there, that the Australian market is certainly feeling some contraction in this market. But obviously, it's really exciting to see that we've seen the growth inside the European market. So overall, as I said, the 30% compounded growth over the last 4 years, really strong into the quarter, which gave us a solid performance for FY '26. Thanks, David. If we break that down a little bit by brand, we can see that we had a significant quarter in our white label sales, so this $6.3 million unaudited, which was up significantly, 105% on the prior quarter. And so, we really are beginning to see, as we scaled into that additional room that I spoke about to get us up to the sort of 8-tonne mark in Denmark, that was largely driven by our plan to -- well, firstly, to deliver into our white label customers, in particular, into the German market and some into the U.K. market, but also to get us ready to really drive our own brand into the German and U.K. markets as well. So exciting to see that growth, and we're in close connection with our white label partners, and we are foreseeing some really strong 12 months ahead with those partnerships. CherryCo sales, you can see here, was slightly down, certainly across the board in the Australian market. We see a heavily competitive market and a slightly compressed market by total volume across the board with both across the CherryCo brand and, in fact, the LGP brand as well. On the Lush Labs side of the business, only a small part of what we can see there in our revenue by brand portfolio mix. However, we have been working for a period of time on launching some new products in that space, which are focused on craft -- the Australian-grown craft, and we believe that, that should have a significant impact into the coming quarters. Thanks, David. Now, this slide, you would have seen before. So obviously excited to report that our net cash position is in the positive territory, so operating cash flows of $1.1 million, which was up from a negative $1 million in the prior quarter. So we had a minimal increase in our operating costs. You can see there on the blue line on the graph, and that is significant when we have a look at the top line growth, but also we had -- we're starting to incur some of the merger costs to do with the Cannatrek merger within the last quarter, and we'll continue to see a bit of that as well. So, that was encouraging. Within the quarter, we repaid $1.1 million in debt, and we secured an extra $0.5 million in equipment financing to increase our total of unused debt facilities to $5.6 million, which was up from $4 million. So $5.6 million unused, paid down additional $1.1 million in debt and an operating cash flow of $1.1 million for the quarter. So it really strengthened our balance sheet significantly in this quarter. Thanks, David. Again, this is a slide we've spoken about a lot. I think we can certainly see here that our net tangible asset continues to significantly exceed our enterprise value. As I mentioned before, we paid down $1.1 million of debt. So, that brings our debt position down to $2.6 million with $5.6 million unused. Cash at bank sits -- at the end of 31 March was $1.4 million, so pretty similar to where we were at 31 December. And overall, I think if you look at our enterprise value of 0.75x our revenue, still really talks to a position of being undervalued. And I think if we compare that, say, to the top Tier 1 U.S. companies -- and that is also in a pretty difficult market up there, and we would call that a very compressed market along with the Canadians. But if you look at the U.S., they're trading -- the top-tier U.S. companies are trading at, on average, 1.4x their calendar year -- 2026 revenue for calendar year. And so, if you overlay that even in reverse with our financial year '26 number that we've reported unaudited in this report, that puts our EV at $60 million if we make that comparison. So certainly, we feel that -- and I'll talk a bit more about where we think we are in a broader market sense on share price and certainly a big focus of the company in the long term. Really for us, it's about building a solid balance sheet as we reported in this quarter, growing the business, growing the top line, focusing on cash generation in the short to medium term, but equally keeping a strong eye on the market, absolutely. Next slide we'll jump into is to just chat briefly around where we're at with the merger timetable. So this is the -- this is with -- obviously with Cannatrek. So, as shareholders listening today would know, we did have a 30-day delay based upon several CPs and some more information, which we reported earlier this week on Monday. So happy to say that we are on track now for 1st of June. So the shareholder vote will happen on the 22nd of May, so very, very soon, and then another court hearing and then a final implementation date being the 1st of June. So certainly pressing very close now. Thanks, Dave. And just to remind those on the call today around some of the rationale and the synergies behind the merger. I think now that we've spent -- I personally have been spending a period of time, obviously, working with the future Board and aligning on culture, and I feel even stronger that from -- compared to day 1 when we announced this to market, I feel incredibly positive now around the combination of the 2 businesses. But the revenue scaling that we have on the pro forma numbers that we previously reported gives us a significant uplift in comparison to other companies on the market. The pivot on the EBITDA position and the free cash flow that, that will generate and our ability to invest that cash flow into growth -- there's no doubt that one of the weaknesses we've had on our balance sheet has been a cash position. And that has, in some ways, perhaps slightly hamstrung our ability to really scale growth into those markets that we've managed to open up inside Europe. And so, this opportunity really enables us to smartly deliver into some of those growth markets, in particular, the German and the U.K. market, and I'll expand more about that. And I think the consolidation in the global market is well and truly in play at the moment. There's sort of not a week that goes by where there's more opportunity in that space. So we believe that the combination of the 2 businesses, the new Board structure, the executive leadership team, the know-how, the experience we have in consolidation now, successful consolidation, positions us incredibly well to lead a global market conversation in this space. And obviously, we're hopeful but certainly confident of valuation uplift and rerating once we get through the post-June and we really talk about the synergies and the opportunities for the business. Thanks, Dave. I'll quickly touch on a couple of the key European markets. So the German market in the last -- in calendar year 2025, we did see a really big increase in the total tonnage imported into the country, a slight decline in the last quarter reported. However, we do believe that, that may be an exhaustion of the annual quota that's enabled to be set and then imported because we've seen -- I think we will see an increase in that in the coming quarters. So, one of the concerns that we've had in the German market is this MedCanG amendment, and the potential -- or the potential for that pathway was a limitation on the mail order dispensing of products and also a limitation on telehealth, whereby patients would need to access their first script via face-to-face before they transition to telehealth. There seems to be a bit of constitutional EU law pushback on that from what we're hearing in the market. And in fact, I was just recently up at a conference in Berlin and talking with our partners, and there seems to be a renewed positive energy on what the next 12 months looks like as we think will reflect in some of our ongoing partnership deals through our white label part of the business as well. The benefit of that and the scale of the white label is, it really enables us to bring our cost per gram down with scale through the Danish site and makes -- it ensures that we can be very competitive on our own brands. And so, within the German market, we have been for a long time really trying to ensure that we get the right balance of white label versus our own brand. And so, I'm pleased to announce that we're very close to approval of 16 products inside that market. In fact, within our forecast, we're expecting sales in July or August this year. So we're really close to really driving that, and we've recently brought a key person on board to help us deliver that inside the market. The U.K. market has also been one of growth. In the last 12 months, there has been a doubling of the size of that market. For us, it's definitely been a flower-driven market. And for us, the opportunity we see is, again, through our vertical supply from the Danish side into the U.K. market. So we're pretty busy looking at that plan. A big part of -- or part of the investment that we will see from the cash generation of MergeCo will be to look at the U.K. market and invest up there, and look forward to talking about that once that becomes clear in the coming months. Thanks, David. Just touching on Poland on the next slide. So yes, thanks. The Polish market, we -- as I have previously spoken about, is an authorization or registration pathway to the Polish market. The nice thing about that is there's fewer competitors, unlike the Australian, the German and the U.K. market. Those dossier approvals or authorization approvals can take north of a year. In fact, I think ours has been north of a year, but we did recently have an engagement with the regulator. So we believe that we're moving closer to that market, and we do see a significant opportunity. There's still a limited number of products in that market, so a really good opportunity to drive products from the Danish site just down across the border through Germany to the Polish market as well. The French market, for those who have been following us for a long time, has been a long journey, but a really, really positive journey for us because we've been able to positively sell product into that market as they continue to extend the date in which they push towards a regulated market. Largely, the timing has been driven by political instability. And for those who follow politics in that region, it has been a long moving and shifting progress. So we do see that there's light at the end of the tunnel for this part of the market, and we're pretty busy working on finalizing our dossiers to submit. And we believe that the decree will come into place later -- probably mid this year, which puts us in line with products potentially on market by late this year, early next year, at this stage. The Spanish market is quite similar, as I've said before, to the French market, and there won't be flower, to begin with. It will be an oil-based market, but it will be a full dossier-based submission. So it's almost like a registered submission that you'd see in any normal pharma pathway. And so, that does limit the competition in the market. So we're attracted to those markets. And whilst we see the fast-mover markets being key to our short- to medium-term success being Australia, U.K., Germany, eyes on the Polish, French and Spanish market, those that are heavily regulated has always been a point of difference for our business. So we do believe there's some significant upside from, in particular, those 3 markets. There's a few others we're working on as well. Thanks, David. Okay. So the U.S. cannabis markets -- and this slide, we've again had a few times before in our presentation. So this is the Gartner curve. And we do believe that us, along with the industry, have been, for a period of time, in this trough of disillusionment that we see in the Gartner curve and very much a shakeout period. And so, in a typical shakeout period of a normal Gartner curve, you'd expect to see consolidation in the market, which we are seeing. We're a part of that conversation. We do believe that the news in the U.S. of down-scheduling to Schedule III will have and is having an impact. So the U.S. index, we follow pretty closely. So with the announcement last month of the down-scheduling confirmation, we've seen about a 20% index climb across the board in the U.S., but we really expect that once implementation happens, there will be a lag on implementation. Likely late this year or early next year, we see -- we expect to see the real impact on the U.S. market. So the big impact will be this 280E tax change. And that will have a significant impact on net profits and increasing cash flow quite significantly actually for the U.S. market. So currently, the U.S. groups are trading on average about 5x EBITDA in the current market. Now, where that goes to when they get this tax relief, which will be significant, M&A will accelerate in that market. We think institutions will be really taking a good look at the U.S. market. Where that lands to, I won't guess at where I think that lands to on valuations. But if we take a step back and we go, okay, what's a normal consumer health care multiple in that U.S. market? And it's 8 to 12x EBITDA. So they're currently trading at, call it, roughly 5 to 5.5x EBITDA with a normal consumer health care market in 8 to 12. So, that -- what we think will happen in that market is a significant increase in the tailwinds and a growth phase for that part of the market. We do think that will be one of many but one of the tailwinds and quite significant tailwind that will impact on the global markets. And we do know, as I've said before, that the big U.S. players are the companies that we know and haven't yet been overly active in the European market. We're starting to see them sort of pop their head over the [ parapet wall ] now and spend a bit of time in Europe. And so, we do believe that their plan will be to acquire and they will look for opportunity in the European market. And equally, the Australian market is becoming more attractive for international opportunities as well. Thanks, David. [ So there's ] not a huge amount of change to report on this slide. Capital structure remains similar. The substantial shareholders and the support of the substantial shareholders obviously remains the same as last reported. Obviously, we're moving to a phase post 1st of June, where there'll be some significant changes here. So certainly, we'll spend a bit of time working through that in subsequent presentations. Thanks, David. And just to then -- just a bit of a summary slide to wrap up on the next 6 months. I think there will be some significant opportunity. We're really excited to talk about the synergies and the leveraging scale of the Cannatrek merger, in particular, the synergies through [indiscernible] just operational synergies, which we see through the scale of what we have into Denmark. Cannatrek are an incredibly strong brand and have been for a number of years inside the Australian market. So the internal synergies between our Danish site coming down into the Australian market, and then the Cannatrek team have a really strong manufacturing site here in Shepparton. So our ability to capture margin through accessing that part of the business will be significant. And it's just that latent access and capability that I think will be that sort of first-up easy wins inside the business that we look forward to executing immediately really from 1 June. For us, we'll continue to focus on that European growth. I think validation we can see inside this quarter that the decisions we have been making on our strategy and delivering on that strategy into Europe is paying off now. We think that, that has been the case, to be honest, for a number of years, but to see the quantum of this quarter has really validated that strategy, which is exciting to see. We continue to look and explore other opportunities to capture additional revenue through this incredible Danish site that we have. I think for those that have followed us for a while, they'll know the scale of our Danish site, but we purchased that site for cents on the dollar. We own it practically debt-free now. Not only do we own the site, we own the farm next door. We own multiple houses, which really talks to our net tangible asset position as a business and largely backed by property. But that particular site, even just the infrastructure of that site has such significant scale in what we could do. So no, there isn't another site like this in Europe. Europe is certainly one of the fastest-moving markets in the world in our industry, and we have this amazing site 2 hours from the German border, which is the biggest -- obviously, one of the biggest growth markets in the world now. So there's still -- whilst we're encouraged with where the site is heading, the laws did change in Germany -- sorry, in Denmark at the start of this year, and we're now looking to implement a strategy whereby we are capitalizing on more opportunities. So one of those opportunities might be a processing hub where we can utilize the capabilities we have, the bagging lines we have, the size of the GMP site, the laboratory we have, an EU GMP laboratory, to really scale the processing and deliver top line revenue, but really healthy margin business back into our operations as well. And then for us, we'll continue on our strategy. I think the consolidation -- we are still in this phase of consolidation. So that is critical and will continue to be critical. As I mentioned at the start, I think we probably have one of the best teams in the market to look at opportunity and to consolidate and to bring businesses together. So we'll continue to do that, both Little Green Pharma and with MergeCo and with the new Board. Thanks, David. That's the end of my slides and certainly happy to take on some questions if you've had any on the way through.

Thanks, Paul. As you've just touched on, we'll now move into the Q&A section. [Operator Instructions] This was another record quarter for the business with revenue, cash receipts and operating cash flow all moving higher. What do you think were the key drivers behind that step-up in performance?

Yes. Look, I think for us, as we saw in that presentation, validation of the plan into the European market. I think we can clearly see through the white label increase in the quarter, in particular in the back end of March, the work that we've done to deliver solid white label partnerships that's years in the making. So they are relationships and partnerships we've been working at for a number of years. And we did benefit from the last 12 months, a pretty significant increase, as you saw in one of those slides, into the German market. The partners we're working with were a core component to their brand inside the German market. So, that was -- that was certainly a critical part. But equally, not just the German market, we really did see some emergence into the U.K. market in that quarter as well. We are absolutely driven to ensuring we have a really good balance between the white label partnership deals, but also our own brands. And as I mentioned, the more white label deals we get to scale up our Danish site, the better cost per gram position we get to, to ensure that our own brand can be competitive in that market. So it really does now feel like we've moved well and truly beyond that point of validation of that particular site. We believe, looking at our costs in terms of what we're producing out of that site, that we can be globally competitive. And what we've got is a site that's delivering constant regular quality to the market. The validation of that is the third parties that are continuing to come back and scale up their orders. So yes, we -- whilst it's taken us a number of years to get there, we think that we're incredibly well positioned now with that site at the scale we're at, and there's really upside from -- significant upside from here as we go take it hopefully from 8 tonnes all the way up to 20 to 30 tonnes as we scale.

The Australian market seems to have seen a slight decrease quarter-on-quarter in sales numbers. Is that partly a shifting to where the high margin or the bigger opportunities are?

I think in the Australian market, we've seen some headwinds from a regulatory perspective, has been pretty clear across the board. So we are -- the TGA, which is the regulator -- health regulator here in Australia, are in the process of reviewing the framework here in Australia, and we have played an active role, in fact, supported that role inside the Australian market. So we applaud and encourage and are looking forward to some announcements hopefully soon, which will bring some tighter rules to the Australian market. I think if we look historically, the Australian market has been a somewhat easy market for global markets to sort of dump product in. So the primary source of product into this market has been imported initially out of Canada. We've seen a lot of product coming from some of the cheaper markets like the Thai market. And so yes, we certainly believe that a higher standard is -- will be important, and that's what the TGA will be looking at and focused on. So yes, look, those headwinds have had an impact. They've had an impact on some of the scale of the clinics that we've seen out there. And on top of that and perhaps aligned to that, we've certainly seen -- because of the ease of access to get product into this market, and we've seen a huge amount of competition. So we've got well north of 100 to 150 companies, probably north of 2,000 products now in this market. So brand becomes really important. Education becomes really important. Consolidation becomes really important. And so, whilst we are seeing some compression, it's what we expected and certainly, again, validates why we pushed hard into the European growth markets as well.

You probably get asked this question a lot. There is a few questions here on it. So I'm grouping them together. So apologies if I'm not paraphrasing exactly as presented. Share price is trading at a substantial discount to analyst forecast price targets, et cetera. You touched on it in your presentation. But what do you think the market is currently missing in its valuation of Little Green Pharma? And how do you reconnect that market understanding to the share price?

Yes. Look, I think there's probably a few things on that. I think one of the biggest things I think the market is probably missing is just a pure valuation under the assets that we have inside the business, to begin with. So first of all, if you sort of take a step back and go, let's have a look at the tangible assets, in many cases, a net tangible asset can be backed by other things on the balance sheet that may make that look favorable. But if you zoom in and actually have a deeper dive at us and our business, a lot of it is actually property-backed, which is fundamentally different to almost all of our peers in this market. So I did mention earlier, if you look at the Danish site, we own that almost debt free. We purchased it for CAD 20 million, obviously, now 4 to 5 years ago. The previous company that had that site spent north of $120 million building that site. We own the site. We own the land. We own the farm next door. We own the houses. So first and foremost, I think that is a bit of a [ mislook ], I guess, if you like, from the market in looking at our valuation. I do think that there's this cautious nature in our market, particularly the cannabis sector. So it's not just us. Like if you look at the cannabis market across the board, typically, there's caution towards our market. I do feel like that's starting to change. We're starting to see a bit of movement with a few players out there and some more normal valuations beginning to appear. So I think that's encouraging and exciting and hopefully, part of what we think will be the growth in that Gartner curve back up into more of normal growth operations and consolidation in the market. But look, ultimately, for us and our management team, I'm getting the team very much not necessarily focused on short-term price movements. For us, it's about executing consistently, delivering cash generation, opportunities for our business growing sustainably for the business, investing in opportunities like the French market, the Polish market that I think will deliver us, in more the medium to long term, some significant growth. And I think if we overlay that with global tailwinds, which we've spoken at length about today, I think we -- I'm still incredibly confident in where we're heading. But equally, very much it is a question we get a lot and one that we're hyper conscious of.

You touched on just then Europe and the various markets that are either expanding or opening up. Where do you see the markets that will deliver the biggest volume growth over the next 12 to 18 months and why those markets?

Yes. Yes. I think our strategy has been just crystal clear, I think, from our growth for a number of years on this now and I think validation that we're heading in that way. So the way we break up in our strategy, those growth markets is that we have those high-moving growth markets being Germany, Australia, U.K. And they are markets that we do look slightly through more of a -- it's medical, but we look at those markets slightly more through a fast-mover consumer goods style lens. And so, those markets are competitive. They're growing at scale, and we still see big opportunity. Obviously, the Australian market is having its challenges, which I've spoken about. The German market, there's a lot of noise about the German market, but it's still a relatively competitive market if we compare it to the Australian market. However, we have been very focused on white label. We haven't necessarily had the balance sheet in terms of the cash position to really drive home our own brands inside that market, which perhaps has been a bit of a missed opportunity, but I don't think -- I certainly don't think it's too late. I mentioned earlier in the presentation, we've got 16 dossiers that we're close to getting approved inside that market, and we are expecting our own sales in that pathway in July or maybe August at the latest this year, so in the coming months. So the German market would probably be #1 to answer your question. Number two, I'd say, would be the U.K. market, and that's another fast-moving one, again, has been underinvested from our side, but part of the MergeCo investment would be really to look at resourcing up that part of the market to drive growth. And both in Cannatrek and Little Green Pharma, we're definitely experts in building brand and driving our brand to market. So we're pretty confident on what we can do out there. And then, the next layer on those markets would be the heavily regulated markets that are harder to get into, that need the dossier style submissions that look more like a drug registration, so French market, Polish market, the Spanish market I spoke about. The Italian market, we reported that we delivered [ 80-kilo ] delivery into the Italian military recently as well. So we see a potential opportunity in that market as well. So I hope that answers the question. They would be the focus markets up in Europe for the next 12 to 18 months.

Now, just lastly, you touched on during the presentation and it's sort of on everyone's lips at the moment, Cannatrek and the completion subject to final CPs being met of that transaction. When you look at something like this, and I know you've spent a lot of time on it personally and within the executive group looking at this. It's -- bringing 2 businesses together, the first thing you're trying to find is synergies. What are the first 2 or 3 synergies you expect to realize once the merger completes and over what time frame?

Yes. So I think time frame, I'll try and talk to time frame, but certainly pretty clear on what the initial ones look like and time frame will be immediately, from the 2nd of -- which I think is a Tuesday, the 2nd of June will be -- we're not going to be sitting around on this consolidation is key to us getting this merger right. The drag -- the slow nature, I guess, of getting to completion by virtue of the framework that we work in, in this market has meant that we've done a lot of thinking. Obviously, we haven't been able to jump in together and build that out for obvious reasons. But certainly, from our side, we've done a lot of thinking of what that can look like. So we think from day 1, we'll be kicking off, and I expect to be showing synergies. There will be some cost of bringing the businesses together, of course, through the synergy process, which we'll see in the first few quarters probably. But I also expect to see some synergies within those quarters, too. So from a manufacturing and packing perspective, like optimizing that will be kind of number one straight off the bat. So at the moment in Australia, we actually pack off part of our products and we manufacture through some third parties. So we'll be delivering a synergy immediately on that. Procurement and leveraging of the procurement process. Obviously, both companies will be sourcing products from same or different suppliers. So the scale of what we can deliver through procurement and some infrastructure savings there will be effective almost immediately within that first quarter. Delivering, scaling -- I think I mentioned this before -- from the Danish site. So looking at the Cannatrek portfolio and saying how do we ensure that we look inside in our vertical supply chain to choose genetics that we can bring in through the Danish site to deliver margin at our cultivation level and then margin again at the wholesale level will be critical. So we'll be implementing those as soon as we can. That can take a bit longer because of the pathway to get patients scripted and products into market and how we educate and market that. But certainly, that will be something we'll be putting in place as soon as we can. And I think like any businesses coming together, there will be some duplication of some of the corporate costs inside the businesses as well, so one Board and don't need 2 law firms and accounting firms and audits and all those sort of things. So some pretty significant savings straight off the bat that we should see immediately.

Well, as you say, this decision on the completion will go to investors in the coming weeks. So it's all coming to a head, and it's an exciting time for Little Green Pharma and its shareholders. So Paul, thanks for your time.

Thanks, David, and thanks to everyone for joining today. Appreciate your time.

Yes. Thanks, everyone, for joining us today, and thank you, Paul, for the update and for answering investor questions. If there were any questions we missed, I know Paul is more than happy at any time to answer them and is always available. So please direct them to him via the means shown on the screen. And a recording of today's webinar will be made available following the session. It will be sent directly via a link to each of you in the next 24 hours. Thanks again, everyone. Enjoy the rest of your day.