- Australia cannabis industry remains unaffected by the impact of COVID-19, and some health experts anticipate the prescription of medical cannabis will rise this year.
- MGC pharma signed an agreement to sell 100% of its subsidiary, MGC Nutraceuticals to Onassis Holdings.
- THC Global has signed a 12-month production deal with Cannatrek for supply and manufacturing.
- In FY2020, Bod Australia achieve solid growth in revenue, marks almost 235% rise on total sales revenue.
Cannabis industry comprises companies that provide, support or are involved in the R&D, distribution, as well as sale of medicinal along with recreational cannabis. Cannabis has started to gain broader acceptance globally and its use has been legalised in several nations, states, and various jurisdictions in Australia and internationally for medicinal, recreational and other applications.
During the pandemic driven economy, while some of the companies are going belly up, marijuana industry remains untouched by the impact of COVID-19 pandemic.
Remarkable traction has been noticed in the medical marijuana industry. Notably, Medicinal Cannabis Industry Australia (MCIA) has remarked that the medical marijuana industry has been qualified as an essential service under the public health instructions, released by states as well as many territories. Some health regulators anticipate that the number of medical cannabis prescriptions in Australia will increase significantly this year.
In this article, we are highlighting few cannabis stocks, MXC, THC, BDA, who remained focussed towards their development and continued to move towards the set goals.
MGC Pharmaceuticals to sell its MGC Nutraceuticals Subsidiary
European based ASX-listed biopharma company MGC Pharmaceuticals Ltd (ASX:MXC) is engaged in developing and supplying of Phytocannabinoid derived medicines for the patients globally. The Company has partnerships with academia, universities, as well as companies worldwide for performing broad research and develops high-quality therapeutic formulations.
MGC Pharma has an impressive product portfolio for two widespread diseases - epilepsy and dementia – and has some products under development pipeline.
On 18 June 2020, MGC pharma announced that the Company has signed a binding acquisition agreement to sell complete (100%) of its MGC Nutraceuticals subsidiary to Onassis Holdings Corp (US OTC publicly-traded company) for US$6 million worth of shares in Onassis Holdings. MGC also revealed about an exclusive CBD and raw materials supply agreement which will remain valid till the Company, with the subsidiaries, continues managing any production facilities in Europe.
As a component of the sale, the Company secures an exclusive supply agreement for the provision of MXC’s CBD, raw ingredients along with the proprietary production intellectual property (IP) to Onassis for the upcoming production of nutraceuticals.
MGC Pharma achieved a significant milestone with the sale delivering a material investment asset. Moreover, with its resources the Company’s complete focus remains on the core pharma business and products.
Binding Term Sheet Signed with IM Cannabis Corp
On 15 June 2020, MGC Pharma disclosed that the Company has signed a binding term sheet with IM Cannabis Corp for the exclusive wholesale import, sales as well as distribution of CannEpil® in Israel for a period of five years. IM Cannabis Corp is one of the leading cannabis companies in Israel having its operations in Europe.
Notably, MGC Pharma is presently in discussions with the Health Ministry of Israel for consent of the clinical study and for an early access scheme authorisation to sell CannEpil® through registered physicians in Israel.
Under this term sheet, IM Cannabis will also be responsible for the promotional activity along with distribution of CannEpil®, and each purchase order is to be a minimum €50,000.
Besides, MGC will continue to own all the CannEpil® associated IP rights and be liable for the continued development of products.
Stock Information: On 19 June 2020, MXC quoted at AU$0.023 with a market cap of nearly AU$36.24 million.
THC Global Group Initiates Production Deal with Cannatrek
NSW-headquartered ASX-listed medical cannabis player THC Global Group Limited (ASX:THC) is into the cultivation as well as development of cannabis of pharmaceutical grade. THC Global operates primarily in Australia and Canada. Southport Facility of the Company is one of the largest pharmaceutical good manufacturing practice (GMP) cannabis production facilities worldwide.
On 15 June 2020, THC Global and Cannatrek Limited has signed a cannabis manufacturing and supply agreement with a 12-month production deal.
This agreement benefits from Southport Facility of THC Global as a high-volume, world-class pharmaceutical manufacturing capacity, and substantial cannabis cultivation expertise of Cannatrek. With this agreement, THC Global will develop and produce Cannatrek-branded drugs on a contractual basis.
In return for the manufacturing and extraction, Cannatrek will deliver the same quantity of cannabis flower in dried form used in Cannatrek’s medicines to THC Global.
Under this arrangement, the first supply of dried cannabis flower from Cannatrek is anticipated to begin in the third quarter of 2020, with the first Cannatrek branded medicines to be released in the fourth quarter of 2020 by THC Global after the production as well as validation.
Pause in Trading
Dated 16 June 2020, THC Global informed the market that its securities are placed in a trading halt pending as it releasing an announcement regarding a capital raising, and trading in THC ordinary shares would resume on Monday, 22 June 2020 or when the announcement is released to the market.
Bod Australia Achieve Strong Revenue Growth in FY2020
Cannabis-centric ASX-listed healthcare company Bod Australia Limited (ASX:BDA) is working with a comprehensive focus and an objective to innovate and transform the way one lives and enjoy life. The Company is focused on research & development through partnerships with research partners on clinical study programs.
On 4 June 2020, Bod Australia provided the update on FY 2020 financial performance.
The company disclosed that in recent months it has achieved robust revenue growth with the fiscal year 2020, revenue now totalling nearly AU$4.5 million. Moreover, this marks AU$1.1 million rise over AU$3.4 million, first nine months revenue of FY2020.
Notably, this also marks almost 235% rise in total sales revenue for the fiscal year 2019.
The below-represented image shows cumulative growth in FY2020 revenue and binding purchase orders:
The Company has a significant pipeline of products that are currently under development across formats (such as skincare, beverages and more), which will be introduced in the forthcoming months, along with several products using distinctive delivery methods that will come to market in the near term.
It is worth noting that Bod Australia is convinced that continuing surges in medicinal cannabis prescription numbers in Australia and the United Kingdom will strengthen the revenue growth further.
Stock information: The stock of BDA traded at AU$0.285, up by 9.615% on 19 June 2020 with a market cap of nearly AU$23.76 million.
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