Sale of MGC Derma to Strategic Partner Cannaglobal Canada...

Sale of MGC Derma to Strategic Partner Cannaglobal Canada Includes exclusive 5-year supply agreement to sell MXC’s CBD and raw materials


 Binding Term Sheet signed with Canadian cannabis investment company, Cannaglobal, to acquire 100% of MGC Derma
 MXC to sell 100% of MGC Derma for C$12.5m in Cannaglobal equity, C$2.5m loan repayment to MXC and a 5-year CBD and cosmetic materials supply agreement
 To complete the transaction, MXC has acquired the remaining 49% of MGC Derma held by MGC Derma partner Dr. M. Burnstein Ltd for C$1.25m (Dr. Burnstein’s share of MGC Derma’s working capital loan (49%)) to deliver 100% of MGC Derma to Cannaglobal, facilitating this strategic transaction
 Cannaglobal founders and major shareholders are leaders in the Canadian business community and cannabis industry, with a track record of building successful retail business operations both in the cannabis and general retail sectors
 Cannaglobal is currently exploring opportunities to publicly list on one of the Canadian stock exchanges, which is now materially advanced
 Cannaglobal will appoint a new MGC Derma CEO, Mr Hugh Winters, an experienced CEO in the global beauty sector with a track record of success
 The Deal includes an exclusive 5-year Supply Agreement for the provision of MXC’s CBD, proprietary production IP and cosmetic materials to Cannaglobal
 5-year Supply Agreement includes an upfront C$1 million order and payment for the initial supply of CBD and materials order, with funds to be received by MXC within 10 business days
 Cannaglobal transaction allows MXC to become singly focussed on developing its GMP-grade pharmaceutical product pipeline, generate first pharma revenues and construct its large European based seed-to-pharma commercial operations in Malta
 Delivers clear financial strategy and future funding outcome for MXC – allowing management to focus its resources on becoming a leading Bio-Pharma operator in the European medical cannabis industry
 Shareholder approval under ASX Listing Rule 11.4 will be obtained for the disposal to Cannaglobal at the Company’s upcoming AG