Despite significant hindrances caused by lockdowns throughout Europe, MGC Pharma has continued its operations and managed to deliver over 1,800 phytocannabinoid medicines throughout the globe.
MGC Pharmaceuticals Ltd (ASX: MXC), has provided investors and shareholders with an update on the company's business operations amid the coronavirus, COVID-19 pandemic.
Firstly, the company stated in its recent press release that MGC Pharma "has successfully managed the health and safety of our brave and committed staff based in Slovenia whilst continuing operations from our European manufacturing base without major disruption during March and early April."
The Release goes on to mention that MGC's operations will be continuing in Slovenia, with heightened health and safety focuses due to the country's proximity to Northern Italy, which has been one of the worst countries affected by COVID-19. MGC will be implementing its business continuity plan, with production at the company's GMP pharmaceutical facility to continue through the coming months. In order to achieve this, the Company has shifted its office staff into a remote working model, with the manufacturing workforce split into two shifts to manage the risk of infection.
MGC Pharma's supply chains were disrupted, with the delivery of raw materials, labels and packaging all hindered due to the closed borders throughout Europe. Additionally, the company's efforts to obtain permit approvals to export MCG Pharma's phytocannabinoid medicines have been delayed. However, the company states that delays have been minimized where possible, despite these frequent disruptions.
Moreover, MGC was pleased to announce that over 1,800 MGC Pharma products, including the company's flagship drugs CannEpil and MP100, have been successfully delivered across the globe, into the UK, Australia, New Zealand and Ireland, in spite of the significant hurdles faced over the recent months. For future delivery, MGC expects delays to occur during the COVID-19 crisis given the lockdown of most of Europe.
In order to minimise expenses where possible, the Board of Directors have agreed to take Executive and Non-executive Director salary cuts as of the 1st of March 2020, with a minimum of 50% salary cuts for all Directors and executive management.
Additionally, most of MGC's senior management and staff have agreed to take salary cuts of roughly 40-50%, which will be offset by shares in the company. The timing of the share issue to employees and the decided issue price for the staff will be determined at the end of each month by the Board and will be reviewed at the end of the June quarter.
These salary cuts and share issuances have been implemented in order for MGC Pharma to retain the key staff in the Company during this crisis period, as they each play an integral role in the Company's current operations and future success of MGC Pharma.
On top of salary cuts, MGC Pharma has been reducing its discretionary spend, deferring non-essential research and development, as well as cancelling or renegotiation all existing contracts.
The Company will be seeking government funding schemes and rebates where possible throughout the UK, Slovenia and Australia for companies impacted by the COVID-19 pandemic.
Roby Zomer, Co-founder and Managing Director of MGC Pharma, commented: "I appreciate the COVID-19 pandemic is a global issue and is front of mind for our Australian shareholders, but the impact of what is happening in Europe and with respect to the people in Slovenia cannot be underestimated. The majority of our team is living next to the epicentre of this pandemic, but have continued to work tirelessly over the past 6 weeks for which we owe them the utmost gratitude.
The easy option would have been to close the operations at the start of March; however, our team members continue to make every effort to keep MGC Pharma moving forward due to their belief and commitment to what this company is doing in creating and manufacturing unique, and life-changing, phytocannabinoid medicines. Roby Zomer, Co-Founder of MGC Pharma
"On behalf of the Board, I would like to take this opportunity to send our thoughts and best wishes to all at this difficult time and will continue to monitor updates and local government guidance on the COVID-19 pandemic closely and update shareholders as the situation evolves," Zomer concluded.
To learn more about MGC Pharma, visit their company HQ here.
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