Today, on 4th June 2019, a European based ‘Seed to Pharmacy’ bio-pharma company, MGC Pharmaceuticals Ltd (ASX: MXC) announced its operations and confirmation of material revenue generation for the June quarter from its non-pharma business units. This includes the first bulk order of CBD based cosmetic raw materials under its five-year supply agreement with private Canadian cannabis retail products company, Cannaglobal Canada Co Inc. and new revenues from the delivery of products to lifestyle and medical cannabis product manufacturer, Mabsut Life.
MGC Pharma’s Co-Founder and Managing Director, Roby Zomer, stated that MGC Pharma continues to make excellent progress across the company, as it implements its commercialisation strategy and increases sales of its cannabinoid-based products. The first bulk of cosmetics raw materials order and Aquiol™ of €438,000 to CannaGlobal under the five-year supply agreement is a testament to the ongoing relationship between the companies, and quality of the products that the company able to provide for the growth and diversified revenue profile of MGC Pharma. This is in tandem with the increasing sales under the product supply agreement with Mabsut Life and demonstrates that its portfolio of proven saleable products is a key differentiator for the company.
Mr Zomer further stated that the company is making excellent headway and its value as a high-quality product developer is beginning to be recognised. The company’s model, team and international partnership network are performing well, and the management looks forward to further news flow as the company deliver its Seed to Pharmacy strategy. The company is in the next stage of development with the widening of its commercialisation strategy and product range. The ‘Seed to Pharmacy’ strategy, which includes research and development, cultivation, manufacturing and distribution is a key corporate differentiator. The company is focused on execution and building its product range and market penetration.
MGC Pharma has received the first tranche of €160,425 payment as part of the €438,000 full purchase order value, which includes the supply of cosmetics raw materials and Aquiol™ (MGC Pharma grade CBD water soluble) for manufacturing of new Derma products. The completion of the full purchase order payment will be made to MGC Pharma on the conclusion of manufacturing in Q3. This was under the five-year supply agreement executed in Q4 2018 in place between the companies.
MGC Pharma’s supply agreement with Mabsut Life (‘Mabsut’) continues to materially contribute to the company’s revenue profile, with payment of €108,000 recently received by the company from the orders completed in Q1 2019.
In a previous announcement, the company highlighted that it has a marketing and distribution agreement signed with the Chinese e-commerce import platform, YuShop Global, to sell the company’s CBD and hemp-enhanced nutraceuticals product range in China.
Additionally, on 7th May 2019, MGC Pharma announced that it received the first shipment of CannEpilTM in the United Kingdom.
On the stock information front, at the time of writing (on 4th June 2019, AEST 3:30 PM), the stock of MGC Pharmaceuticals was trading at $0.055, up 5.769%, with a market capitalisation of ~$63.07 million. Today, it reached day’s high at $0.059 and day’s low at $0.055, with a daily volume of 4,501,476. Its 52 weeks high and low price stands at $0.081 and $0.032, with an average volume of 4,226,375 (yearly). Its absolute returns for the past one year, six months and three months are -25.71%, 20.93%, and 33.33%, respectively.
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