MGC Pharma has updated investors on the progress of its sale of MGC Nutraceuticals to the U.S. based Onassis Holdings Corp.
MGC Pharmaceuticals Ltd (ASX: MXC), today provided an update on its recent sale of MGC Nutraceuticals, the Company's subsidiary, to Onassis Holdings Corp. (OTC: ONSS) following the signing of a binding acquisition and exclusive CBD supply agreement.
The 100% sale of MGC Nutraceuticals will result in MGC Pharma receiving USD $6 million in shares of Onassis Holdings Corp., while MGC will supply its CBD, raw materials and proprietary production intellectual property (IP) to Onassis for the future production and manufacturing of nutraceuticals products.
The full settlement of the acquisition is expected to be completed over the next five months, and Onassis has commenced the process of finalising the offering submissions for the capital raising with the US SEC.
The process from submission to completion is expected to take roughly three months.
Once the offering submission has been approved, Onassis will complete the capital raising which will enable the full and complete settlement of the MGC Nutraceuticals acquisition.
Eliron Yaron, Chairman, Onassis Holdings Corp, commented: "Onassis is very pleased with the quality of the products developed by MGC Nutraceuticals, and will continue to buy CBD isolate for its products over the next 5 years. We believe this transaction will be transformational for Onassis and allows us to considerably expand our offering and the reach of
The sale of MGC Nutraceuticals is a milestone transaction for the division and will allow it to achieve its full operational and commercial potential.Roby Zomer, Co-founder and Managing Director of MGC Pharma
Roby Zomer, Co-founder and Managing Director of MGC Pharma, commented:
"The Onassis team are highly experienced in wellness products and will be able to develop, grow, and distribute the products to a broad range of customers across the US. Selling the division is also a major milestone for us at MGC Pharma as we are now able to fully focus on our core strategy and on developing and commercializing our phytocannabinoid derived products for growing global markets."
To learn more about MGC Pharma, visit the company HQ here.
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