Little Green Pharma and Cannatrek Are Finalizing Their Merger

Little Green Pharma has officially completed its merger with Cannatrek. This transaction brings together two of Australia's leading operators and creates a vertically integrated cannabis company with significant operations in both Australia and Europe.

Finalized on June 1, 2026, after receiving approval from the Federal Court of Australia on May 25, this all-stock acquisition marks the culmination of a process first announced in January.

The LGP Cannatrek Group, formed in this way, brings together cultivation, pharmaceutical manufacturing, distribution, clinics, and telemedicine services under a single corporate structure.

Cannatrek Acquires a Majority Stake in the Merged Group

Although Little Green Pharma officially acquired Cannatrek through a « scheme of arrangement », the transaction is in fact a reverse takeover. Upon completion of the transaction, Cannatrek's former shareholders will control approximately 60.5% of the share capital, while LGP's current investors will retain 39.5%.

The merger received overwhelming support from Cannatrek's shareholders in April, with 98.44% of the votes cast in favor of the proposal.

Based on the financial results for fiscal year 2025, the merged entity was expected to generate annual revenue of approximately 112 million Australian dollars (70 million euros), as well as adjusted EBITDA of 13 million Australian dollars (7 million euros).

The companies also announced projected combined net assets of more than 136.7 million Australian dollars (84 million euros) and cash on hand of approximately 15 million Australian dollars (9 million euros).

The European medical cannabis market is at the heart of expansion plans

One of the main reasons for this merger is the opportunity to strengthen the group’s position in the European medical cannabis market. Little Green Pharma already operates a large production facility for pharmaceutical-grade cannabis in Denmark, and participated in the French cannabis pilot program.

According to the company, this plant has unused capacity that could accommodate additional production as the merged entity expands its international distribution.

Cannatrek brings its Australian distribution network, product portfolio, manufacturing capabilities, and financial resources to the table.

The group plans to combine these complementary strengths to improve its operational efficiency, optimize its manufacturing costs, and expand its presence in both regions.

This strategy also reflects a broader trend toward consolidation within the global cannabis industry, where companies are increasingly seeking economies of scale and more integrated supply chains.Expansion in Europe remains, of course, subject to national regulatory frameworks and the group’s ability to integrate its operations.

New Management Structure for the LGP Cannatrek Group

The merger is also accompanied by a reorganization of the management structure. Brent Dennison, formerly president of Cannatrek, becomes the independent non-executive chairman of the merged group, while Paul Long retains his position as CEO of the group.

Commenting on the completed transaction, Mr. Dennison said, «The successful completion of this merger creates one of the largest and most diversified medical cannabis companies in Australia and Europe,»,

Other appointments include Paula Butler as the group’s chief financial officer and Jason Rance as CEO for Australia. Michael Lynch Bell will continue to serve as an independent non-executive director, alongside Thomas Huppert and Seth Yakatan.