MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, ASX:MXC) is set to receive just under £3.7mln in funding from various sources, including a placing of new shares and backing from Cantheon Capital, a specialist investor in the cannabinoid sector.
The group, which specialises in 'plant-inspired' medicines, has raised £1.2mln through a conditional placing of new ordinary shares at a price of 0.44 pence (0.8 cents) a share with investors in the UK and Australia.
In addition, MGC entered into a binding term sheet with Cantheon, which will fund a phase IIb trial of CannEpil, a drug candidate targeting treatment-resistant epilepsy.
Cantheon agreed to invest up to £629,775 in tranches to take the asset through the study.
The company said it can also claim up to a further £1.1mln via a 43.5% Australian federal R&D government rebate.
Furthermore, MGC Pharma has provided a broker option that could raise up to £750,000 via an offering to exempt sophisticated and high-net-worth Australian investors.
MGC's managing director Roby Zomer said: "This fundraise will provide MGC Pharma with the capital required to continue the excellent progress we have made advancing our clinical pipeline.
"We see it as a vote of confidence in both our clinical pipeline and our strategy, which we continue to progress, most recently with the listing of ArtemiC as an OTC product by the FDA."