The company officially kicked off Phase II CogniCann Clinical Trials last week, while also raising over AUD$2 million via a strategic placement and Share Purchase Plan.
The European based "Seed to Medicine" bio-pharma company, MGC Pharmaceuticals (ASX:MXC), updated the market today on the closure of its Share Purchase Plan (SPP), while also providing an operational update.
The SPP received valid applications for a total of AUD$1,142,460, which—combined with its recently announced strategic placement—amounts to a total of AUD $2,142,460, from a potential maximum of AUD$4,000,000.
The funds generated by the SPP and strategic placement will be used to bankroll the manufacturing costs associated with fulfilling MGC Pharma's current and continuing purchase orders in Australia, Europe and Latin America, along with providing general working capital and covering the company's ongoing operating expenses.
The company takes its responsibility to shareholders, staff, and partners very seriously and will continue to assess any potential impact to operations and forward planning as the situation regarding COVID-19 evolves. We have implemented appropriate policies to protect and best manage the health of our staff in Europe. The company has experienced minor disruptions to parts of its raw materials supply chain, which is being managed on a daily basis to mitigate any disruption to manufacturing operations. MGC Pharmaceuticals Operations Update
MGC Pharmaceuticals also took the opportunity to update the market on several important developments, including the receipt of its first down payment—for more than AUD$107,000—from ONIX Empreendimentos e Participações, following a recently executed binding amendment to its supply and distribution agreement.
The down payment is for ONIX's initial purchase order of 4,000 product units, which is expected to have a total value exceeding $330,000 once the deal is complete.
The company also announced that it will shortly despatch the first shipment of its epilepsy drug, CannEpil, to the Irish market. The shipment is expected to be delivered directly to Ireland from MGC Pharma's Slovenian facility, before the end of March 2020.
MGC Pharmaceuticals expects to see a continued increase in product demand—in both Ireland and the broader European market—following the fulfilment of the purchase order.
MGC Pharma also received an 85% increase to its purchase order volumes in January, rising from 2,000 to 3,700 thanks to the immediate production and delivery of its Mercury Pharma line. The first 2,000 bottles of MP100 have already been manufactured for the Australian market, with export from Slovenia due in the near term.
Once the order is fulfilled, it will more than double the company's total number of prescriptions to date, demonstrating the immediate market demand for affordable high-quality cannabinoid medicines.
The first patients taking part in MCG Pharma's Phase II CogniCann Clinical Trials also began treatment last week, which will evaluate the drug's efficacy at alleviating the symptoms of dementia and Alzheimer's disease.
To learn more about MGC Pharma visit their Company HQ here.
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