MGC Pharmaceuticals Ltd (ASX: MXC or “the Company”) is pleased...

MGC Pharmaceuticals Ltd (ASX: MXC or “the Company”) is pleased to announce that it has signed a binding terms and conditions supply agreement (T&C) with Varm Cosmo Inc. (Varm Cosmo) for its MGC Derma division to supply five of its cannabidiol (CBD) cosmetic products in bulk form, to be sold to consumers as part of Varm Cosmo’s cosmetics range.

An initial $3.3m in revenue will be received shortly after the receipt of the first quarterly purchase order from Varm Cosmo, which is expected by the end of October 2017.

Under the T&C’s, the parties will sign a binding sale agreement in the coming 31 days and will examine further expanding the product range and supply volumes

- They have both signed a Supply Agreement, which most likely includes a $3.3m deposit from the first purchase order (that both have
agreed on amount $3.3m).

- The Binding Sale agreement (under the already signed Supply Agreement) will be signed in 31days. Most likely an agreed price between
MGC and Varm Cosmo and other finer details.


:: IMO-DYOR