"During the quarter, MXC received its first binding purchase order from emerging Korean health care and beauty cosmetics company, Varm Cosmo, under an $8m binding sales agreement for MGC Derma’s cannabidiol cosmetic products. The Company experienced unexpected operational and logistics delays, including damage to some of the initial samples sent from MGC Derma’s manufacturing facility, resulting in a delay to receipt of the $1 million deposit, as recently announced. Replacement and additional bulk samples, including a new formulation were subsequently dispatched during December and January 2018. Once Varm Cosmo completes testing of these new bulk samples, which is now underway, and they finalise their commercial order, receipt of the $1 million deposit is expected shortly thereafter"
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