Sign up Australia
Proactive Investors - Run By Investors For Investors

MGC Pharmaceuticals attracts $5 million for medical cannabis facility in Malta

Cannabis produced at the facility to be used in the production of GMP-grade pharmaceutical products.
a cannabis plant
Awarded full medical cannabis production and cultivation contract

MGC Pharmaceuticals Ltd (ASX:MXC) has successfully raised over $5 million via a share placement to sophisticated and professional investors at 7 cents per share.

The oversubscribed placement received strong support from new and existing shareholders and was cornerstoned by the Merchant Opportunities Fund.

New medical cannabis production facility in Malta

MGC will use the new funds to contribute to the construction of a fully-licensed medical cannabis facility in Malta.

The company has been awarded a contract by the government of Malta to construct a 4,000 square metre state-of-the-art medical cannabis production and cultivation facility.

MGC is one of only five companies, and the only company from Australia, to be awarded a full medical cannabis production and cultivation contract, following a competitive tender process.

Cannabis-based pharmaceutical products for global markets

Under the agreement, the company will be permitted to produce all THC (tetrahydrocannabinol) and CBD (cannabidiol) strains of medical cannabis.

This will expand the commercial opportunity for MGC to develop additional medical cannabis pharmaceutical products into key European and global markets.

Cannabis produced at the facility will be used by MGC in the production of its GMP-grade pharmaceutical products for global markets including Australia.

The facility is also expected to enable the supply of medical cannabis flowers directly into the emerging European markets, including Germany.

Changes to Malta’s medical cannabis laws

The Malta contract terms require MGC to spend a minimum of about US$6.5 million over the first three years on the construction and operations of the medical cannabis facility.

The contract terms will be governed under the final legislative changes to Malta’s medical cannabis laws which are currently in final stages of a parliamentary process.

READ: MGC Pharmaceuticals commencing production of CannEpil for epilepsy

MGC recently commenced production of its first batch of CannEpil at its European medicinal cannabis facility.

CannEpil is MGC’s first pharmaceutical-grade medical cannabis product targeting people with drug-resistant epilepsy.

Once the distribution of CannEpil commences, it is expected to generate more than $1 million in annual sales in the Australian market in its first year.

Join our Crypto, Blockchain and Cannabis Telegram group here
View full MXC profile View Profile

MGC Pharmaceuticals Ltd Timeline

Related Articles

Picture of growing facility
May 07 2018
Establishing a vertically integrated business model provides THC with the ability to optimise efficiencies in the manufacturing process.
surgeons working
September 03 2018
Chief executive Steve Couldwell also told investors the regenerative medicines specialist had identified a number of potential new commercial opportunities it was “actively pursuing”
September 20 2018
Following the disappointment of its DMD treatment over summer, Summit is leveraging its Discuva platform to develop new antibiotics, which doctors are in desperate need of

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use