Erin Acquires MGC Pharmaceuticals - No Further Capital Raising Required

Unique Opportunity to Invest In Growing Global Medical Cannabis Market – Fast Track, With No Further Capital Raising Required

Erin Resources (ASX : ERI or the Company) has announced it is acquiring 100% of the issued capital of MGC Pharmaceuticals Limited (MGC), which strategically diversifies its business and investment focus into the significant and rapidly growing medical cannabis market.

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Critical Investment Criteria For New Investors - No Further Capital Raising Required

The ASX has granted Erin Resources a waiver to acquire MGC with no further fund raising required. This follows the recently completed $2.7 million underwritten options raising, which is expected to fund MGC’s path to commercialisation.

Significant Progress to Date – Key Milestones Achieved

MGC has made substantial progress towards establishing itself as a significant player in the medical cannabis and related cosmetics and medical device markets in Europe, being a producer of cannabinoid (CBD) resin from its first crops in H1 2016.


In the past 5 months MGC has:

• Secured a license to grow, process, trade its Cannabis Sativa L strain (Hemp) in Slovenia
• $60 million initial CBD off-take agreement over a four-year period
• Executed a Joint Venture with European research and development business Natura Laboratories to research and develop formulas for cosmetic products and over-the-counter medical devices
• Positive results from initial tests of the CBD cosmetic over the counter (OTC) formulas in development with Natura, for first commercial sales in H1 2016
• Option to acquire the license to grow and trade medical cannabis in Namibia – for operations in the Northern and
• Southern hemisphere to produce CBD all year round

Near to Mid-Term Catalysts

• Ongoing negotiations on further CBD offtake and MGC cosmetic product distribution agreements – EU and USA
• Production of its initial range of CBD cosmetic products expected in early 2016 following completion of clinical trials
• First CBD crops are expected to be planted in April 2016
• First revenues to come following the first sales of its cosmetic product range in early 2016

For more information about MGC Pharmaceuticals please visit: http://mgcpharma.com.au/

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