MGC Pharma has completed the 100% acquisition of the operating telehealth clinic, Medicinal Cannabis Clinics (MCC).
MGC Pharmaceuticals (ASX: MXC) yesterday announced it had completed the acquisition of Medicinal Cannabis Clinics, including its operating telehealth clinic business assets, data, and intellectual property.
Both companies signed the binding term sheet in July 2020, and MGC paid $400,000 in cash and the consideration of $1 million in MGC's Ordinary Shares.
Medicinal Cannabis Clinic Pty Ltd is currently in the process of obtaining all relevant state and federal licences to allow for the import and distribution of MGC Pharma medicinal cannabis products in Australia. The Company will then move its Australian supply chain into Medicinal Cannabis Clinic Pty Ltd which will significantly reduce logistical costs such as importation, storage and distribution costs per unit, delivering an increased profit margin.
Established in 2019, MCC is a leading Australian telehealth medicinal cannabis clinic with an extensive doctor and patient network, having facilitated over 4,000 medical consultations that enable eligible patients to access high-quality and affordable medicinal cannabis products.
The acquisition gives MGC Pharma access to over 600 pharmacy accounts and a network of patients, as well as a delivery infrastructure that can remove the necessity to visit doctors or pharmacies.
The acquisition of MCC provides MGC Pharma with import and distribution capacity that will significantly expand market access and provide control of the supply chain from manufacturing through to patients. This allows the Company to continue providing its high-quality GMP certified medications to patients in Australia to further improve the profit margin at the current affordable prices.
The acquisition of the MCC Assets is the next step in building on-the-ground distribution assets. This allows the Company to wholesale and distribute directly to other clinics and pharmacies to reduce storage and distribution costs, while giving the ability to set retail price points.
We are very pleased to complete the acquisition of MCC. As previously announced, this acquisition significantly improves our distribution network and supply chain capabilities and efficiencies both in Australia and Internationally. Roby Zomer, MGC Pharma's Co-Founder and Managing Director
Roby Zomer, Co-founder and Managing Director of MGC Pharma continued to say that "The MCC acquisition enables MGC Pharma to increase the profit margin and meet our stated goal of providing high-quality cannabinoid medications to patients at an affordable price."
To learn more about MGC Pharma, visit the company here.
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