The Little Green Pharma Ltd (ASX: LGP) share price has had a tough run over the past few months. This comes despite the medicinal cannabis producer releasing some positive announcements to the market of late.
At Friday’s closing bell, Little Green Pharma shares finished the day down 2.04% to 72 cents apiece. They are now down 22.5% since the start of July
What has Little Green Pharma recently announced?
In late August, Little Green Pharma released its preliminary report for the 2021 financial year, highlighting mixed results.
The company generated more than $7 million in revenue, up 218% over the prior corresponding period. The robust performance came from the sale of medicinal oil and flower products.
On Little Green Pharma’s bottom line, profit after tax came to $24.6 million, an improvement from the $9.3 million loss in FY20. While this appears a sound performance, the $25 million gain on the purchase of the Denmark facility bumped up the end result.
In addition to the result, Little Green Pharma was granted a Schedule 9 licence to supply psilocybin by the Western Australian government. The licence is a key element of the company’s entry into the international field of psychedelic drugs to treat mental illness.
Furthermore, Little Green Pharma successfully imported its first shipment of its THC 16 cannabis flower medicine from its Danish facility into Australia. The Little Green Pharma share price jumped on this news.
Regardless of the positive progress, Little Green Pharma shares have tanked from the beginning of July. Its peers too, Creso Pharma Ltd (ASX: CPH) and Althea Group Holdings Ltd (ASX: AGH) have not been immune. They have fallen 12.5% and 27%, respectively.
A possible catalyst for the fall could be weak investor sentiment as the cannabis sector has been slow to take off. In 2018, there was massive hype in cannabis products, but this has since waned.
About the Little Green Pharma share price
Over the past 12 months, Little Green Pharma shares gradually moved upwards to advance around 150%. The strong accent came off the back of late 2020 where the cannabis sector took off following optimistic investor sentiment.
However, in 2021, the company’s share price moved relatively sideways, registering gains of approximately 30%.