MGC Pharmaceuticals Ltd (ASX: MXC), a European based specialist medical cannabis biopharma company, on 12 April 2019 announced that it had received a United Kingdom Controlled Drug Import Licence permit to import CannEpilTM into the United Kingdom. Other than that, the company has received its first formal purchase orders for CannEpilTM via licence distribution partners in Australia as well as the UK.
With the receipt of the permit, the company has an opportunity to expand the distribution of CannEpilTM immediately into medicinal cannabis products market in the United Kingdom. This distribution process will be managed by the distribution partner of the company, Lenis in the region.
The delivery of the products to fulfil the initial purchase order are planned for April 2019. The company also expects that there will be further new orders from these licensed distribution partners, once the new distribution channels get established in the upcoming months.
At present, the company is engaged actively in finalizing the negotiations with licensed distributors in Australia and the UK. Within a few weeks, it might enter into formal binding agreements. With the execution of these agreements, the distribution of CannEpilTM, CogniCannTM and other IMPs of MXC will significantly expand in the UK and Australia.
On 2 April 2019, the company provided an update related to the pharmaceutical operations and seed-to-pharmacy business plan along with the commercialization strategy for its two core divisions Seed-to-Pharmacy Manufacturing along with the Research & Development.
On 13 March 2019, the company appointed a 30years+ experienced candidate, Dr Stephen Parker to the board of the company as the Non-executive director. He holds extensive experience working with pharmaceutical as well as investment companies which would prove beneficial for the company in strengthening the market position within the UK and Europe and also support the operational business followed by expediting the access into the UK capital pharmaceutical market.
For the interim financial period to 31 December 2018, the company’s revenue from the ordinary activities increased by 864% as compared to its previous corresponding period. The company in 1H FY2018 made a loss of $7,193,489 which turned around to a net profit of $611,016 in 1H FY2019.
The key achievement of the company during the period included the receipt of full GMP certification for the manufacturing and production facility of the company in Slovenia along with the subsequent arrival of the first CannEpilTM product into Australia. The company also entered into a binding agreement with CannaGlobal for the sale of MGC Derma. The balance sheet of the company reported an increase in the net asset base as a result of a fall in the total liabilities during the period. The total shareholders’ equity was $13,538,395. By the end of 1H FY2019 on 31 December 2018, MXC had net cash and cash equivalent worth $6,277,860.
At present, the shares of company are trading at A$0.041 (2:30 pm AEST, 12 April 2019), up by 17.14% as compared to its previous closing price. The company holds a market capitalization of A$42.45 million and approximately 1.21 billion outstanding shares.
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