Gina Rinehart’s Hancock Prospecting made a $15 million investment into cannabis cultivator Little Green Pharma
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Little Green Pharma (ASX:LGP) has announced a $27.2 million capital raising, $15 million of which was invested by Gina Rinehart’s Hancock Prospecting.
Hancock Prospecting will as a consequence hold over 10 per cent of the company.
The WA cannabis cultivator raised the proceeds to acquire a medicinal cannabis facility in Denmark (in Europe) which it hopes to help it expand into European markets.
LGP managing director Fleta Solomon said the acquisition was “step change” for the company, that would provide for over eight times the capacity of its previous planned production expansion.
“We are confident this acquisition is an efficient use of our capital and will drive long term value for our shareholders,” she said.
Shares only rose 5 per cent this morning but are 90 per cent up in the last 12 months.
While a cannabis stock may seem like a peculiar investment for Hancock Prospecting, it is far from the only ASX company that is backed by Rinehart either directly or through Hancock.
Another is Victorian gold play Catalyst Metals (ASX:CYL) which received a $13 million investment from Rinehart for an 11 per cent stake in early 2019.
Prior to that she indirectly backed the company as a joint venture partner.
Earlier this year, Rinehart invested in high-flying lithium play Vulcan (ASX:VUL) acting as a “cornerstone investor” in its $120 million capital raising.
She is also a shareholder in oil and gas junior Lakes Oil (ASX:LKE).
This investment has been less successful for her with the company hit by Victoria’s gas ban. It’s currently fighting against the clock to avoid delisting having been suspended for nearly two years.
Hancock has also been trying to get into coal in Alberta with plans for her company to build a coal mine at Grassy Mountain but earlier this month local authorities ruled the mine was not in the public interest.