The ASX has granted the trading halt until the earlier of the start of normal trading on Monday, November 5 or when the announcement is released to the market, whichever occurs earliest.
MGC Pharmaceuticals shares last traded at 5.1 cents on Wednesday.
Transaction agreement with CannaGlobal
In September 2018, the two parties entered an agreement regarding the sale of MGC Derma.
Last month the parties mutually agreed to extend the completion date until October 31 to allow for completion and execution of the definitive agreements and all related contracts.
At the time CannaGlobal co-founder Lorne Gertner said, “We are firmly committed to the deal with MGC and extremely excited for the opportunity ahead of us to enter the cannabis skincare market with our acquisition of MGC Derma.
“CannaGlobal is committed to closing our deal with MGC quickly, including our advance C$1 million order under the supply agreement and the previously agreed acquisition terms of the MGC Derma business.”
In October, MGC received an Australian Therapeutic Goods Administration approval for its CannEpil medical cannabis product to be prescribed for reimbursement to people with drug-resistant epilepsy.
As a result, the company expects to make the reimbursable cannabis product available to the Australian market in December 2018 through pharmaceutical distributor HL Pharma.
Co-founder and managing director Roby Zomer said, “This is a significant achievement for us and we are excited at the prospect of ramping up production to a commercial scale and bringing CannEpil to Australia.
“This important step validates MGC’s seed-to-pharma strategy with the start of commercial revenues from our first investigational medicinal product offering.”
The company’s core business strategy is to develop and supply high-quality cannabinoid-based pharmaceutical products to medical markets in Europe, North America and Australasia.