Little Green Pharma (ASX:LGP) share price leaps 7% on revenue growth

Patient demand for medicinal cannabis products has grown in Australia.

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The Little Green Pharma Ltd (ASX: LGP) share price is well in the green today, currently up 3.7% at 70 cents after soaring 7% higher this morning.

Below we take a look at the ASX cannabis share’s quarterly results that look to be driving investor interest.

What did the quarterly update reveal?

Little Green Pharma’s share price is soaring after the company reported “strong revenue growth” and a record month of sales for September.

Unaudited revenue came in at $3.18 million while the company reported an all-time monthly high of $1.39 million in sales for September.

As at 30 September, Little Green Pharma had a cash position of $29.1 million. It reported that, “Cash receipts lagged sales as debtors missed the cut-off for the month, with over $900,000 being received in the first few days of the current quarter.”

Growth and acquisitions

The Little Green Pharma share price may also be getting a boost from the strong growth in its Australian market. The company reported 4,580 new patients, a 39% quarter-on-quarter increase. And 110 new prescribers represented an increase of 46% from new prescribers coming on board during the previous quarter.

During the quarter, the company also completed its $6 million acquisition of “the properties underlying its cultivation and manufacturing facilities in Western Australia, as well as the two adjoining properties”.

Little Green Pharma said it was continuing to focus on European commercial sales. In line with that, the company has started integration of its Danish facility.

Atop its cannabis offering, the company also is progressing with its psychedelics business. In September, the Western Australian State Health department revised Little Green Pharma’s Schedule 9 licence “to permit the supply of psilocybin”.

Little Green Pharma share price snapshot

Over the past 12 months, the Little Green Pharma share price has rocketed 105.8%. That compares to a gain of 24% posted by the All Ordinaries Index (ASX: XAO) over that same time.

Little Green Pharma’s shares have been trading relatively flat over the past month.

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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