The trading halt will remain in place until the start of regular ASX trading on Friday, July 24, or when an announcement is released to the market, whichever occurs earliest.
Shares last traded at 2.4 cents and are up from 2 cents at the market close on July 1.
Move to acquire medicinal cannabis clinics
MGC Pharma this week announced that it intends acquiring 100% of the operating clinic-based assets, data and intellectual property of Medicinal Cannabis Clinic Pty Ltd (MCC).
The company has signed a binding term sheet with Cannvalate Pty Ltd to acquire its wholly-owned subsidiary MCC.
As well as being one of Australia's leading medicinal cannabis clinics, MCC has an extensive doctor and patient network.
A new company will be incorporated to hold all the MCC assets which will be wholly-owned by MGC Pharma.
This would move MGC Pharma’s Australian supply chain to the new company, allowing the company to continue providing increasingly affordable cannabinoid medications though the focused reduction of importation, storage and distribution costs per unit.