#1little green pharma Denmark Acquisition and Capital Raise 22 JUNE 2021#2Disclaimer Disclaimer This presentation contains summary information about Little Green Pharma Ltd (ACN 615 586 215) ("LGP") and its activities current as at the date of this presentation. The information in this presentation is of general background and does not purport to be complete or to contain all the information which a prospective investor may require in evaluating a possible investment in LGP or that would be required in a prospectus or a product disclosure statement prepared in accordance with the Corporations Act 2001 (Cth) ("Corporations Act"). It should be read in conjunction with LGP's other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, which are available at www.asx.com.au. 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Acceptance By accepting, accessing or reviewing this presentation you acknowledge and agree to and accept the terms and conditions as detailed above in this slide entitled "Disclaimer". little green pharma 2#3Executive Summary Transaction summary Denmark Facility overview Strategic rationale Little Green Pharma Ltd ("LGP") has acquired 100% of the issued shares of Canopy Growth Denmark A.p.S ("LGP Denmark") which owns a medicinal cannabis production facility in Denmark (EU) ("Denmark Facility") Acquisition price C$20 million (~A$21.4m¹) World class cannabis cultivation and manufacturing facility in Denmark Meets GACP cultivation standards and holds EU-recognised GMP manufacturing licence Capable of producing >20 tonnes p.a. biomass including ~12 tonnes p.a. of dried cannabis flower Accelerates LGP's current planned capacity expansion and market penetration by two years Immediately increases LGP's cultivation capacity to >23 tonnes of biomass and ~13.5 tonnes per annum of dried cannabis flower (up from ~3.0 tonnes and ~1.5 tonnes, respectively) Acquisition consistent with LGP's EU expansion strategy and clear strategic fit with LGP's existing operations and capabilities Provides platform to leverage Company's early mover advantage and brand equity in key EU markets Consistent with LGP's strategy of acquiring or building adequate capacity to meet market demand and avoiding over-capitalisation Acquisition consideration compares very favourably with facility investment to date Maintains LGP's sole focus on medicinal cannabis LGP Group will benefit from internally sharing best-practice cultivation, manufacturing, and pharmaceutical practices and expertise 1. CADAUD: 1.07 little green pharma#4Executive Summary (cont'd) Integration success Acquisition consideration Additional terms Acquisition funding Timing LGP will optimise production between new Denmark Facility and existing West Australian Facility Primary focus on ramping up sales from Denmark Facility LGP has acquired LGP Denmark (including the Denmark Facility) for C$20 million (A$21.4 million¹) payable in cash as follows: C$10 million (A$10.7 million¹) at Completion ("Initial Consideration"); and C$10 million (A$10.7 million¹) in 12 months pursuant to a retained loan at an imputed interest rate of 12.5% Purchased on a cash-free, debt-free basis with final purchase price adjusted on a dollar-for-dollar basis for cash on hand at Completion Canopy Growth Corporation ("Canopy") to provide LGP: a licence to use four medicinal cannabis cultivars currently produced by the Denmark Facility for a period of 12 months; and transitional IT services Acquisition cash consideration, capex and working capital costs to be funded from existing cash reserves and an institutional placement to raise A$27.2 million (the "Placement") The acquisition completed on Monday, 21 June 2021 ("Completion") 1. CADAUD: 1.07 little green pharma 4#5Empty#6Our Business Model Captures Value LGP operates across the entire medicinal cannabis supply chain Cultivation & Production Πη Manufacturing Product Innovation Patient Access & Education Sales & Distribution EU GACP cultivation facility in Denmark AU GACP cultivation facility in Australia Total biomass cultivation capacity of >23 tpa Total dried cannabis flower capacity of ~13.5 tpa Total cultivation footprint exceeding >23,500 m² EU-recognised GMP manufacturing facility in Denmark AU GMP manufacturing Facility in Australia Additional exclusive 5-year agreement with third-party GMP manufacturer based in Western Australia¹ Capability to expand product range into multiple delivery formats R&D pipeline includes three scientific validation studies and two regulatory approval studies Partnership with Curtin University for exclusive use of ARISE delivery technology for medicinal cannabis formulation Exploring alternative delivery systems and product registration pathways Sponsor of QUEST Initiative investigating the effect of medicinal cannabis treatment on quality of life Partnership with HIF to support patient access and rebate cannabis medicines Proprietary Medical Portal driving patient access and education for medical practitioners Supporting prescriber community through LGP Engagement Team ~3 years track record of Australian sales Strong brand selling six LGP- branded medicines Patients in the UK, Germany, France, New Zealand and Brazil currently accessing LGP medicines Primary suppler to French government trial Agreements with Polish and Danish distributors European subsidiaries as platform to supply European market 1. LGP has an exclusive agreement with a GMP licensed medicinal cannabis manufacturer who may only terminate the agreement after 22 November 2023 on 12 months' notice. little green pharma#7Growth Strategy Little Green Pharma has a track record of sales growth with a clear pathway to increasing margins and driving significant revenue growth in Australia and offshore markets 1 Patient acquisition in Australia 2 Why these are strategically important: Clear pathway to international sales 3 Product and drug delivery innovations Sales in Australia demonstrate market validity and generate immediate cash flow to support development of international pathways > Early-mover commercial volumes in international markets the primary mechanism to secure and grow offshore market share Focus on developing unique delivery systems for patients in the future to solve real patient problems and differentiate LGP little green pharma#8Acquisition G#9• Denmark Facility - Overview World class cannabis cultivation and manufacturing facility in Denmark Meets GACP cultivation standards and holds EU-recognised GMP manufacturing licence Previous exports to Australia, Germany and Czech Republic Capable of producing >20 tonnes p.a. biomass including ~12 tonnes p.a. of dried cannabis flower 21,500m² greenhouse cultivation area 4,000m² post harvest GMP manufacturing facility including laboratory Plant and equipment to produce ~12 tonnes p.a. of bulk dried cannabis flower Current inventory of ~1 tonne of cannabis flower for potential sale into international markets, subject to relevant import/export regulatory requirements Currently operating at ~25% capacity but able to scale to 50% with existing team (60 staff) and minimal capex Denmark Facility Cultivation facility Manufacturing facility little green pharma#10Empty#11Acquisition Strategic Rationale Accelerates planned capacity expansion and market penetration Significantly increases capacity Consistent with expansion strategy Platform to penetrate EU markets Attractive deal metrics LGP was already planning to expand its cultivation and manufacturing capacity to meet growing market demand - decision point was build vs buy Decision taken to buy Significantly accelerates planned capacity expansion by up to two years Enables faster market penetration and brings growth forward Immediately increases LGP's cultivation capacity to >23 tonnes per annum of cannabis biomass (up from ~3 tonnes) a~8x increase Significant production capacity ensures self sufficiency and long-term security of supply Provides future expansion capability in Europe Acquisition consistent with LGP's EU expansion strategy and clear strategic fit with LGP's existing operations and capabilities Provides platform to leverage Company's early mover advantage in key EU markets Additional capacity positions the Company to meet market demand driven by LGP's established brand and distribution channels in Europe Location within EU avoids many EU export/import barriers and requires substantially less export and logistics resourcing than sales from Australia into Europe Improves distribution strategy by serving European customers from Europe Acquisition consideration compares very favourably with facility investment to date little green pharma 11#12Acquisition Strategic Rationale (cont'd) Increased economies of scale Superior cost of incremental capacity expansion Geographic diversification Medicinal cannabis focus Access to best- practices and knowledge Efficiency gains through greater scale of operations Denmark Facility expected to produce GMP medicinal cannabis flower at superior economics (cost per gram) to the West Australian Facility Further cost efficiencies driven by manufacturing and certain laboratory testing being done in-house Future cost efficiencies will be driven by additional automation Consistent with LGP's strategy of acquiring or building adequate capacity to meet market demand and avoiding over-capitalisation Significantly lower cost of incremental capacity expansion through acquisition, with the acquisition cost of ~A$1.0 million per tonne being approximately one third of the ~A$2.7 million per tonne cost of building equivalent capacity in Australia while also representing a time saving of up to two years Two strategically located production facilities from which LGP can service Southern and Northern hemisphere markets Maintains LGP's sole focus on medicinal cannabis The Danish pharma and biotech industry is among the best and most innovative in the world Ensures continued access to market jurisdictions and investors that do not permit engagement with companies undertaking recreational cannabis activities LGP Group will benefit from internally sharing best-practice cultivation, manufacturing, and pharmaceutical practices and expertise 60 staff with average of three years' industry experience and trained by the world's largest cannabis company in a country known for its high GMP standard little green pharma 12#13レ 5#14Capacity Expansion Strategy LGP's West Australian Facility near 100% capacity for finished flower as result of orders received to date • Expansion of West Australian Facility to 6 tonnes p.a. expected to require $8 million investment and require one to two years to build out (construction and permitting) Incremental 3 tonnes capacity (~$2.7m per tonne) Acquisition of Denmark Facility immediately adds >20 tonnes of biomass cultivation capacity (~$1.0m per tonne) and gives LGP two years of additional market access Acquisition of Denmark Facility enables LGP to redeploy significant capital investment previously earmarked for the expansion of cultivation capacity at its West Australian Facility The Company will continue to progress its manufacturing capacity expansion at its West Australian Facility to match its current cultivation capacity LGP proposes to embark on a rapid, market-share acquisition strategy by placing Denmark-produced strategically-priced new LGP brands/strains and white-label products into EU and global markets little green pharma 14#15Post Acquisition Integration Fundamental post integration elements for synergy and value CULTURE SALES & MARKETING OPERATIONS Develop EU sales and marketing capability Integrate LGP brands into facility Launch white-label sales and bulk flower offerings Ramp up operations from 25% to 50% capacity using existing resources Target cash generation - sales ramp-up and cost reductions Current cost efficiencies driven by manufacturing and lab testing being done in-house All 60 staff at Denmark Facility will be retained Mindset change to new global sales model Key LGP Australia personnel to spend time in Denmark integrating the Facilities INTEGRATION LGP will roll-out shared IT and ERP systems across group assets SYSTEMS little green pharma 15#16Post Acquisition Integration (cont'd) How we will increase sales Why we are confident: • Previous owners were only selling within corporate group . Previous owners had multiple external inbound sales enquiries Management were pursuing MBO so were already investigating sales Meaningful sales pipelines already progressed - significant area of focus during the due diligence process SALES & MARKETING Develop Asset EU sales and marketing capability Integrate LGP brands into facility Launch white-label sales and bulk flower offerings Product Mix: 1. LGP branded products 2. White label sales 3. Bulk biomass little green pharma 16#17Post Acquisition Integration (cont'd) Phased and capital conservative approach to facility capex Phased approach to capex investment and facility upgrade: 1. Upgrade production capacity from 25% to 50%, requiring automated flower packaging equipment ($2m - $3m) 2. Install oil extraction and bottling equipment ($2m - $3m) 3. 4. Ramp up production to 100% capacity Realise scale efficiencies and facility upgrades to reduce costs and increase yields (~$5m) OPERATIONS Ramp up operations from 25% to 50% capacity using existing resources Target cash generation - sales ramp-up and cost reductions Current cost efficiencies driven by manufacturing and lab testing being done in-house little green pharma 17#18Clear Pathway to International Sales Poland Denmark France Germany Medezin Sp. z o.o., a subsidiary of Pelion SA, appointed as exclusive distributor in Poland - Pelion SA is the largest operator in the Polish and Lithuanian healthcare sector Medezin targets to sell Products equivalent to ≥20% of the market for cannabis oil medicines and ≥10% of the Market for high-THC cannabis flower medicines Provides production platform to leverage Company's early mover advantage in key EU markets Additional capacity positions Company to meet market demand driven by LGP's established brand and distribution channels in Europe Primary medicinal cannabis oil supplier to French government 2-year medicinal cannabis trial in partnership with local distributor Intel Chimos First mover advantage and brand equity in trial anticipated to catalyse the legalisation of medicinal cannabis market ✓ Medicinal cannabis oils and flower now shipped to Germany for patient use ✓ LGP third global medicinal cannabis producer to export medicinal cannabis extract oils to Germany Firm purchase orders totaling $5.7m (>47,000 units) in CY2021 from DEMECAN Medicinal cannabis oils now shipped to UK for patient use HI United Cannabis flower to be shipped to UK in near term Kingdom 米 Working with local distributors to distribute medicines Pathfinder Shipments Pathfinder shipments crucial for gaining intelligence of new market regulatory frameworks and establishing presence and distribution network growth - New Zealand, Lesotho, Brazil NZ little green pharma 18#19Capital Raising#20Capital Raising Overview Institutional placement LGP has raised A$27.2 million by issuing approximately 45.3 million new fully paid ordinary shares in the Company ("New Shares") under the Placement Offer price of $0.60 per New Share under the Placement: • 7.7% discount to last close of $0.65 on 18 June 2021 Pricing • 9.8% discount to 10-day VWAP of $0.665 9.5% discount to 20-day VWAP of $0.663 Proceeds of Placement to fund: Initial Consideration of the Acquisition; Use of Proceeds . capital expenditure works to permit scaling of Denmark Facility to 50% capacity; Ranking Lead Manager the build out of the Company's European sales team; and working capital requirements New Shares issued under the Placement expected to be allotted and quoted on the ASX on or about 28 June 2021 and will rank equally with existing LGP shares Canaccord Genuity (Australia) Limited little green pharma 20#21Acquisition Terms Acquisition consideration Timing Restraints Additional terms LGP has acquired LGP Denmark (including the Denmark Facility) for C$20 million (A$21.4 million¹) payable in cash as follows: C$10 million (A$10.7 million¹) Initial Consideration paid on Completion; and C$10 million (A$10.7 million¹) payable in 12 months pursuant to a retained loan at an imputed interest rate of 12.5% Purchased on a cash-free, debt-free basis with final purchase price adjusted on a dollar-for-dollar basis for all cash on hand at Completion The acquisition Completed on Monday, 21 June 2021 Canopy restrained from producing and exporting from Denmark and selling medicinal cannabis flower into Denmark for a period of 24 months from Completion, and from purchasing medicinal cannabis flower from third parties in Denmark for 12 months from Completion Canopy to provide LGP: a licence to allow LGP to use the four medicinal cannabis cultivars currently produced by the Denmark Facility for a period of 12 months; and transitional IT services 1. CADAUD: 1.07 little green pharma 21#22Corporate Overview (pre-Placement) Capital Structure Current Share Price¹ $0.65 Register Breakdown4 Institutional, 22% Shares Outstanding 2,3 187,274,615 Options and Performance Rights on Issue 12,008,746 Market Capitalisation (undiluted) 1,3 ~$121.7 million Board, 15% Cash Reserves (31 March 2021) Enterprise Value ~$28.5 million ~$93.2 million Others, 62% Shareholder Elixxer Ltd Fleta Solomon HSBC Custody Nominees (Australia Limited TIGA Trading Pty Ltd (Thorney Investment Group) Angus Caithness Top 20 shareholders Board ownership Shareholders4 1. As at 18 June 2021 2. 54,034,703 shares are escrowed 24 months from date of listing (20 February 2020) 3. Excludes ~2.7 million shares to be issued in respect of property acquisition (see ASX announcement dated 15 March 2021) 4. As at 9 June 2021 Shareholding Ownership 25.0m 13.4% 20.3m 10.8% 10.9m 5.8% 9.5m 5.1% 6.4m 3.4% 96.5m 51.7% 27.9m 15.2% little green pharma 22#23Key Risks • • LGP Denmark is unable to either meaningfully reduce current working capital requirements or place adequate sales into global markets resulting in additional capital requirements Denmark Facility optimisation capex projects are significantly delayed or do not result in additional capacity growth or yield optimisation as anticipated Regulatory timelines for approvals for sales into one or more key jurisdictions are materially delayed beyond current expectations resulting in reduced short- and medium-term sales profiles Key management and Quality team personnel exit LGP Denmark and LGP is unable to find suitable replacements • There is a risk that the COVID-19 pandemic could result in the reduction, cessation or delay in operations or implementation of plans at the Denmark Facility The Danish medicinal cannabis industry is currently governed by the Danish Pilot Scheme which is due to end in December 2021, however, the Danish Parliament recently announced its intention to permanently enshrine the cultivation, manufacturing, and export regime into Danish law and to extend the local Danish prescriber Pilot Scheme for a further four years. Notwithstanding recent announcements and posture, the Danish government may subsequently refuse to extend the Danish Pilot Program beyond December 2021 little green pharma 23#24Market Opportunity#25Total Addressable Market LGP's total addressable market is estimated at ~$24bn¹ at maturity The global medicinal cannabis is experiencing dramatic growth and LGP is one of a few companies world-wide with the capability to deliver into these new and emerging markets The following countries have been identified as LGP's current target markets based on regulatory frameworks and capability to deliver into key distribution networks Country Australia Population 25m TAM at maturity Notes A$1bn France 65m A$6bn Germany 84m A$8bn CBD over the counter could increase this estimate Currently illegal (Government medicinal cannabis trial underway) Already a large market United Kingdom 68m A$6bn Denmark 6m A$1bn Restricted by condition. CBD legal and widely available Government extended medicinal cannabis trial Brazil 213m A$2bn Cultivation illegal, but imported oils are permitted TOTAL 461m A$24bn 1. Canaccord Genuity Estimates - 12 May 2021 (based on Worldometer) little green pharma 25#26Track Record of Patient Access Strong growth in sales and patients using LGP products in Australia 31 DEC 20 31 MAR 21 37,700 UNITS SOLD AUSTRALIA AUSTRALIAN REVENUE $1.81m $2.3m TOTAL PATIENTS 11,900 54,700 9,500 TOTAL REVENUE $2.46m $2.45m 31 DEC 20 31 MAR 21 CASH AT BANK $28.5m $4.4m 31 DEC 20 31 MAR 21 31 DEC 20 31 MAR 21 31 DEC 20 31 MAR 21 little green pharma 26#27Key Points ✓ Accelerated growth strategy ✓ Greater production capacity Enables faster market penetration ✓ Close to our markets ✓ Efficient use of capital T#28little green pharma LGP Head Office PO Box 690, West Perth Western AUSTRALIA 6872 1300 703 999 | +61 8 6280 0050 [email protected]