Just been reading the 2019 annual report - the heady days when MXC was such a promising company. It covered what were really major milestones/successes - EU GMP, Malta lease (which I noticed that construction was to begin within 3 months and be completed in 18 months) and the Cannaglobal link - MXC owns 10% of a company that no longer seems to exist. The fairy tale did seem so believable back then. What the hell happened in the two years since?
CORPORATE
During the financial year the Company completed the
successful sale of 100% of the MGC Pharma Derma
division to CannaGlobal Canada for a consideration of
a 10% shareholding in CannaGlobal and a five-year
CBD and cosmetic material supply agreement with
CannaGlobal. Crucially, the MGC Derma transaction
enabled the Company to focus exclusively on divisions
– Research & Development, and Manufacturing and
Distribution – in order to advance its strategy of
becoming a leading international phytocannabinoid
focused pharmaceutical business.
In the June quarter, MGC Pharma saw the benefit of this
transaction through the receipt of $469k revenues from
its bulk cosmetics supply agreement with CannaGlobal.
Additionally in the June quarter, through the MGC
Pharma’s supply agreement with Mabsut, the Company
received revenues of $182k which resulted in increased
sales for its CBD based vaporizer PhenoPen.
On 17 April 2019, a Marketing and Distribution agreement
was signed with Chinese e-commerce import platform
YuShop Global (YuShop), to sell the Company’s CBD
and hemp-enhanced Nutraceuticals product range
in China. Targeting Chinese consumers via YuShop’s
online platform and network of 1,500 retail channel
partners, including a luxury spa chain, YuShop are
providing a complete “turn-key” solution to MGC Pharma,
being responsible for all sales, marketing, logistics and
customer service within China.
POST FINANCIAL YEAR END
On 8 August 2019, the Company signed a long-term lease
agreement on the 6,000m2
site for the construction of its
Maltese state-of-the-art GMP production and research
facility. This was a major event for the Maltese cannabis
industry as this will be one of the first commercial
EU-GMP grade production and research facilities in the
country. The facility will enable development of expertise
for phytocannabinoid derived medicines and research in
Malta with subsequent products to be delivered into the
European Union and global markets.
The large scale, eco-friendly commercial facility is
proposed to be a 15,720m2
multi-story building for the
operation of the Company’s fully GMP compliant biopharma business, with a production capacity of over
8,000 units per hour of each product, which is a material
production volume for the pharmaceutical industry.
Construction and planning approvals have already been
received, with preliminary site works now started and
construction commencing. The Malta facility will enable
MGC Pharma to materially scale up its existing production
capacity and future revenue generation potential, which
is currently centred on its research and manufacturing
facility in Ljubljana, Slovenia
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