SYDNEY: MGC Pharmaceuticals Ltd has signed a supply agreement with THC Global Group Limited to produce and supply white label pharmaceutical grade Canndeo branded phytocannabinoid products to Australia and New Zealand for THC Global, adding a new revenue stream to the Company.
Under the binding Supply Agreement between MCG Pharma and THC Global Group Limited, the Company will produce and supply white label pharma grade Canndeo branded products to Australia and New Zealand.
The Supply Agreement also provides for a 6 monthly review of opportunities for supply of active pharmaceutical ingredients (API) and finished product on commercial terms to be agreed as the Company extends commercial production capabilities.
The Supply Agreement will provide a new, and immediate, revenue stream for MGC Pharma with the first purchase order already received by the Company for €25,000 and all subsequent purchase orders will be for a minimum order quantity of €50,000.
Roby Zomer, Co-founder and Managing Director of MGC Pharma, commented: “The Supply Agreement with THC Global for the white label production and supply of pharma grade Canndeo branded products demonstrates MGC Pharma’s reputation, high quality and cost competitiveness in the ever-growing use of phytocannabinoids for medicinal purposes.“This new, and immediate, revenue stream will contribute to increasing revenues from Australia andNew Zealand going into 2020, and we expect that further discussions between MGC Pharma and THC Global on mutual exports of product to respective international markets will be beneficial to the Company going forward, particularly as we develop our 15,000m2 multipurpose GMP certified pharma production and research facility in Malta.”
Ken Charteris, THC Global Chief Executive Officer, commented: “The terms agreed with MGC Pharma provide THC Global with an immediate extension of medicinal cannabis range for the Australian market under its Canndeo brand. As THC Global transitions into a large-scale Australian manufacturer of a full range of medicinal cannabis, we will seek further supply agreements with MGC Pharma that take advantage of quality and cost leadership in our respective operations, and competitively address the needs of multiple international markets.”