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MGC Pharmaceuticals bags $10M for medical cannabis growth

MGC’s cosmetics and dermatological product sales is growing.
MGC Pharmaceuticals bags $10M for medical cannabis growth
MGC is also assessing acquisition opportunities

MGC Pharmaceuticals (ASX:MXC) has closed an oversubscribed share placement after receiving commitments to raise $10 million via the issue of shares at $0.065 each.

MGC will use the funds to fast-track its growth objectives, including the research and development of pharmaceutical-grade cannabis based products.

In addition, the funds will be used to expand sales of the company’s cosmetics and dermatological product ranges.

MGC is also aggressively assessing acquisition opportunities in the Australian and international medicinal cannabis sector.

In January, MGC received approval in Europe for its cannabidiol based dermatological products for the relief of acne, psoriasis and seborrhoea skin conditions.

The development of a dermatologically tested cannabidiol skin care range is a key priority for MGC, given the significant commercial opportunity that such products represent globally.

In 2016, the company signed a distribution deal in California, U.S. for over 60,000 units of cannabidiol-based anti-aging cosmetics products with a contract value of about €1.2 million.

Carrying through a capital raise of $10 million is a substantial validation of the enormous potential of medical cannabis globally and MGC’s potential in this rapidly growing industry.

The company’s share price has increased by more than 80% since the start of 2017, last trading at $0.079.

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