MGC Pharma has sold 100% of its subsidiary, MGC Nutraceuticals, to Onassis Holdings Corp for $6 million in shares in the company.
MGC Pharmaceuticals Ltd (ASX: MXC), a European based biopharma company has just announced that the company will be selling 100% of its MGC Nutraceuticals subsidiary to Onassis Holdings Corp. (OTC: "ONSS").
As a result of the agreement, MGC Pharma (UK) Ltd will receive USD $6 million in shares of Onassis Holdings Corp. in exchange for 100% of MGC Nutraceuticals. As part of the sale, the Company secures an exclusive supply agreement for the provision of MXC's CBD, raw materials and proprietary production intellectual property (IP) to Onassis for the future production and manufacturing of nutraceuticals products.
We are very pleased that MGC Nutraceuticals will have the opportunity to further develop and grow under the expertise of the Onassis team.Roby Zomer, Co-Founder and Managing Director of MGC Pharma
In order to roll-out its new Nutraceuticals range in the U.S., Onassis will be undertaking a capital raise of roughly USD $8.5M, of which USD $2.5M will be used to launch, expand and grow this newly acquired product range. This capital raise should occur roughly around Q3 of this year, to be settled in Q4 this year.
According to MGC, the sale of MGC Nutraceuticals will allow for the "growth and strategic development of the division," while "allow[ing] MXC to focus on its core business of executing its growth strategy to become a world-leading vertically integrated biopharma company."
Roby Zomer, Co-founder and Managing Director of MGC Pharma, spoke on the acquisition: "This is a milestone transaction for MXC, with the potential to realize significant value for our Company and shareholders. MXC will not only continue to benefit from the growth of nutraceuticals but importantly, will be able to further dedicate the teams focus and resources on developing and commercializing our phytocannabinoid derived products for growing global markets."
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