hey Steve - from today's announcement New Panax Acquisition...

hey Steve - from today's announcement

New Panax Acquisition Agreement Signed in December
During the quarter, the Company was pleased to announce it executed a new agreement for the 100% acquisition of Czech Republic company Panax Pharma s.r.o. (Panax) on improved commercial terms for MXC. This new agreement was executed following an extensive due diligence program which delivered with it a new, highly credentialed technology partner, the Institute of Experimental Botany (IEB). Following the execution of the new acquisition agreement in December, the Company advised that settlement was imminent as due diligence being materially completed, and operations are now expected to commence in early 2017.
Under the revised acquisition terms, the consideration to acquire the final 20% equity of Panax has been reduced by €200,000 to a total of €600,000 of MGC Pharmaceuticals shares. The acquisition also now includes access to the prestigious Academy of Science of the Czech Republic’s Institute of Experimental Botany. The facility will utilise a medical cannabis breeding licence for a specific medical cannabis breeding program for the MXC/Panax operations.

This strategic acquisition gives MGC Pharmaceuticals full access to the Academy’s laboratories, growing facilities and 1,000m2 of greenhouse growing space, to conduct medical cannabis breeding research for specific genetics and strains. The Company will start researching a variety of medical cannabis plants with different CBD and THC yields. This strengthens MGC Pharmaceuticals’ research credentials and has the potential to deliver the Company access to new genetic strains of medicinal cannabis to use in its MGC Pharmaceuticals products. In addition, it can be used as raw material for MGC Supplements pipe line. This will become a key part of the Company’s future intellectual property.
The Panax/IEB genetics and breeding facility is expected to be fully operational and in production by Q2 2017.