LONDON: MGC Pharmaceuticals, a European based and Australian listed bio-pharma company, is in the final stages of listing the Company’s shares on the Standard Segment of the Main Market of the London Stock Exchange.
As part of the listing process, the Company intends to raise gross proceeds of approximately £5m via institutional and other sophisticated investors in the United Kingdom
The net proceeds of the capital raising will be used primarily to:
· meet the costs associated with Phase III clinical trial ArtemiC™ planned for H1 2021;
· meet the costs associated with Phase IIb clinical trial in respect of CannEpil®;
· increase distribution of the Group’s product range and expansion into new key markets to drive sales growth and future revenue, including Brazil and major EU countries;
· meet the registration costs for ArtemiC™ in new markets, including Russia, Middle East and Europe; and
· general working capital including completing construction of the Group’s proposed manufacturing facilities in Malta.
MGC Pharma operates a “Nature to Medicine” strategy within the international phytocannabinoid-derived and plant-derived medicines industry. It currently has products on the market which treat two widespread medical conditions – epilepsy and dementia – and has further products in the development pipeline.
It has recently completed Phase II medical trials for the treatment of Covid-19 using a non-cannabis, plant-derived medicine.
The Company’s “Nature to Medicine” strategy comprises the entire supply chain, from botanical research, to develop new strains of Cannabis Sativa product manufacturing, at the Group’s facility in Slovenia and by its third-party distribution network across the UK, Ireland, EMEA, South America, Asia and Australia as well as the development of unique drug delivery systems designed to facilitate the Group’s mission.
The Company has a growing patient base in its key markets of Australia, Brazil, UK and Ireland, with revenues increasing to AU$2.1m in FY2020.
MGC Pharma, in conjunction with its research partners, primarily the Royal Melbourne Institute of Technology (RMIT) and The Biotechnical Faculty of the University of Ljubljana, aim to research and produce the highest quality plant derived medicines, which are affordable, regulatory compliant globally, and most importantly to improve people’s quality of life through natural pharmaceutical products.
The Company’s research is conducted in three main areas of Neurology, Oncology, and Autoimmune diseases.
With RMIT, MGC Pharma have developed drug delivery systems for cannabinoid-based products for cancer, using nanotechnology targeting the CB2 receptors to control angiogenesis and inflammation.
It has also published data with the National Institute of Biology, Slovenia assessing the efficacy of phytocannabinoid-derived medicines on glioblastoma.
On the market now, through early-access programmes, are its leading phytocannabinoid-derived medicines: CannEpil designed as a treatment for refractory epilepsy and CogniCann designed to improve dementia and Alzheimer’s disease for patients’ quality of life, which reached a record number of patients in 2020.
The Company, through its MP line, offers an affordable range of products, leveraging pharma grade compounded products from high-CBD through to high-THC formulations.
Currently, MGC Pharma have several other products in development, aimed at improving the quality of life of people with serious illnesses and diseases, including, InCann (for the treatment of Crohn’s disease and colitis), Tetrinol (cachexia) and TopiCann (anti-inflammation).
The dual listing will increase MGC Pharma’s international profile which aligns with the Company’s growing European and International operations. The dual listing will also provide access to UK capital markets along with UK and European institutional investors.
MGC Pharma will be one of the first cannabis-related companies listed on the main market of the LSE, providing investors with a unique opportunity to gain exposure, through MGC Pharma, to the rapidly growing, global medicinal cannabis industry.
The Company will use the net proceeds from the capital raising to cover the costs of clinical trials for ArtemiC and CannEpil, as well as increasing production of our products and expansion into new and existing key markets to continue to grow the revenue base of the company in 2021 and beyond.
The Company acknowledges the contribution and support of its English lawyers, Memery Crystal and Financial advisor, PKF, both of whom have advised extensively on the LSE listing processes.
Roby Zomer, Co-founder and Managing Director of MGC Pharma, commented: “I am delighted to announce we are moving forward with the admission of MGC Pharmaceuticals to the main market of the London Stock Exchange, which will position the Company for the next phase of its growth and development. Our listing is the culmination of the last six years of hard work, positioning MGC Pharma as a leader in the emerging phytocannabinoid pharmaceutical sector. Admission will reflect our European-based research operations, as well as enabling the Company to engage with investors in the UK, Europe, Africa and the Middle East.”
MGC Pharmaceuticals Ltd (ASX: MXC) is a European based bio-pharma company developing and supplying affordable standardised phytocannabinoid derived medicines to patients globally.