MGC Pharmaceuticals are on track to list on the London Stock Exchange by the second half of 2019, and have also received commitments for a $4.75m placement.
There was massive news from the European-based 'Seed to Pharmacy' bio-pharma company, MGC Pharmaceuticals (ASX: MXC), after the company announced that is has engaged the services of Canaccord Genuity to act as its equity capital markets advisor and lead its planned dual-listing on the London Stock Exchange (LSE).
This means that MGC Pharma will soon be in the highly enviable position of being one of the first medicinal cannabis companies to be listed on the LSE—or any major stock exchange in the UK—following the country's introduction of medical marijuana legislation in November 2018.
The company's management have also confirmed that the company is in the process of working with other key advisors in the UK, to actively progress towards a dual listing in the latter half of the year.
"With our leading clinical and commercial position in Europe, and an increasing presence and patient uptake in the UK, we look forward to updating shareholders on further developments, both commercially and in the UK Capital Markets, over the coming months."
– Co-founder and Managing Director of MGC Pharma, Roby Zomer
MGC Pharmaceutical also used the announcement to reveal that it has secured binding commitments to raise $4.75 million by way of a share placement—with the issue price is presently being set at $0.04 per share—to sophisticated and professional investors.
The company will also undertake an offering of shares to eligible existing shareholders—who will be able to subscribe for up to $25,000 worth of shares—under a Priority Offer, with the aim of raising up to an additional $1.0 million. The Priority Offer will also be subject to scale-back on a pro rata basis unless the Board otherwise determines should total applications exceed $1 million.
The $5.75 million accrued by the company from these ventures will the be used to fund MGC Pharma's ongoing production and sales operations, initial construction works on its Malta GMP Pharma facility and costs towards undertaking a dual listing on the LSE.
According to the Co-Founder and Managing Director of MGC Pharma, Robyn Zomer, "the level of interest from new and existing investors in MGC Pharma is a testament to the opportunity that our business offers investors in providing exposure to the fast-growing medical cannabis market and our unique 'Seed to Pharmacy' strategy."
"We have had an incredibly busy period of late where we have rapidly advanced the business, delivering material results through ground-breaking research and development, increasing our distribution channels globally, opening new markets, strengthening our partnerships with academic institutions and widening our growing and manufacturing capabilities."
"Recent research on the effectiveness of cannabinoids on brain cancers is potentially transformative; the reaching of the 100 patient treatment milestone in Australia in a relatively short time frame is incredibly encouraging; and the commencement of the construction of the Maltese GMP compliant R&D and manufacturing facility will be pivotal to providing a gateway to key European and global markets," Zomer said.
With the company now actively moving towards a listing on the LSE, you can expect big things from MGC Pharma in future, as it moves to take on the increasingly lucrative European market.