MGC Pharma shares jump 38 percent thanks to Chinese Export agreement

Special Report: Biopharma company MGC Pharma will sell its CBD and hemp-based Nutraceuticals products in China thanks to a tie-up with a Chinese e-commerce platform.

The company (ASX:MXC) has signed a marketing and distribution agreement with Chinese cross-border lifestyle and e-commerce marketplace YuShop Global, which sent shares up 38 per cent on Wednesday, to six month highs of 5.8c.

The deal will see MGC Pharmaceuticals join the wealth of small cap ASX companies involved in China, across industries ranging from infant formula to wine to clothes and everything in between.

MGC Pharma will gain access to over 1,500 retail channel partner outlets as well as online storefronts, capturing a market of over 350 million middle-class Chinese vitamin and supplements consumers.

Under the terms of the deal, YuShop will sell MGC Pharma's Nutraceutical products including CBD Hemp protein powder, BCAA CBD capsules, CBD Water Soluble Solution and CBD herbal V-Pen to consumers via its ecommerce platform and retail channel partners.

The company will receive revenue from product sales immediately after transaction completion, and there are no specified minimum contract amounts or volumes.

 

Say Hello to MGC Nutraceuticals

The MGC Nutraceuticals range evolved from the from the company's pharmaceutical grade product development pipeline, as a way of capturing market share in non-pharmaceutical products lines.

Promoting inner health and wellbeing, it includes multiple premium products, comprising of supplements and food grade products with natural flavors such as vanilla, toffee and coconut milk.

They are rich in plant-based proteins, high-quality hemp CBD and a wide spectrum of vital vitamins and minerals to fuel and recharge your body's systems, with essential branched-chain amino acids to build your body's vital proteins.

Nathan Hasley, YuShop's CEO said the deal would lead a "technology-backed CBD product demand surge in China."

Roby Zomer, MGC Pharma co-founder and managing director, described the deal as pivotal to his company's commercialisation strategy.

"We are focused on a growth strategy of becoming a leading global provider of phytocannabanoid health products, including our Nutraceutical range, on top of our leading medicinal products," he said.

 

This story was developed in collaboration with MGC Pharmaceuticals, a Stockhead advertiser at the time of publishing.
This advice has been prepared without taking into account your objectives, financial situation or needs. You should, therefore, consider the appropriateness of the advice, in light of your own objectives, financial situation or needs, before acting on the advice. If this advice relates to the acquisition, or possible acquisition, of a particular financial product, the recipient should obtain a disclosure document, a Product Disclosure Statement or an offer document (PDS) relating to the product and consider the PDS before making any decision about whether to acquire the product.

This article first appeared on Stockhead.

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Hugo Gray
Hugo Gray

Hugo Gray is a Melbourne-based journalist with a body of work that covers a diverse range of topics, including immigration law, sex technology, and now the rapidly expanding cannabis industry.

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