MGC Pharmaceuticals - Company Update & Placing to Raise US$500,000

Argent BioPharma

22/12/2023 09:09

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RNS Number : 7772X  MGC Pharmaceuticals Limited  22 December 2023

 

MGC Pharmaceuticals Ltd.

Company Update &

Placing to Raise US$500,000

22 December 2023

ASX, LSE: MXC

 

MGC Pharmaceuticals Ltd (MGC Pharma, MGC or the Company), a European based
pharmaceutical company specialising in the production and development of
innovative medicines for unmet medical needs, is pleased to provide an update
on the Company's status and progress moving forward.

 

In a significant move, MGC has successfully completed a comprehensive capital
re-structuring, marking a pivotal moment in its development. The Company is
well positioned to embark on the implementation of its long-term strategy as a
developing company in the pharmaceutical industry. Central to this strategic
vision is the pursuit of widespread distribution for its ground-breaking
treatments, underscoring MGC's commitment to advancing healthcare solutions.
The strategic focus extends particularly to regulatory bodies, with a keen eye
on securing approvals from prominent agencies such as the FDA in the United
States.

 

At the forefront of the Company's pharmaceutical efforts are its flagship
treatments, CimetrA® and CannEpil®. These therapeutic solutions represent
the culmination of extensive research, innovation, and the commitment to
addressing critical and unmet medical needs. As it progresses, the Company is
strategically aligning these key treatments for submission to the Food and
Drug Administration's Investigational New Drug (FDA IND) application process.
This pivotal milestone is scheduled for 2024.

 

In pursuit of the strategic transformation as a pharmaceutical company, MGC is
focused on raising its profile in the capital markets, as it explores all
opportunities to complement its existing public status on the London Stock
Exchange and consider the U.S. market as a future potential supportive capital
market. This approach reflects the Company's commitment to expanding its
global footprint and unlocking new avenues for growth and collaboration.

 

Placement

 

In order to facilitate this growth and to bolster our venture into the
competitive US market, the Company has received commitments for additional
capital with professional and sophisticated investors for an equity investment
of US$500,000 (±AU$740,000) into the Company via a private placement. A
significant portion of these funds will be channelled towards intensifying our
regulatory and legal requirements.  The Investors were identified from within
the existing network of the Company's Board and Executive Management through a
bookbuild process, which involved seeking expressions of interest from
unrelated, professional and sophisticated investors that are exempt from the
disclosure requirements in section 708 of the Corporations Act 2001 (Cth).
Additionally, the Company confirms that no fees will be paid to any party for
managing the Placement.

 

Under the Placement, the Company will issue 1,480,000 fully paid ordinary
shares (Shares) at an issue price of AU$0.50 per Share, representing nil
discount to the 21 December 2023 closing price and approximately 5.5% to the
5-day volume weighted average price (VWAP). The placement includes one (1)
attaching options for every two (2) Placement Shares issued. The options will
be exercisable at AU$1.00 each, expiring 3 years from the date of issue
(Options).

 

The use of proceeds from the Placement will be allocated to the following:

 

 ·   Marketing costs US$300,000 (±AU$444,000):
     - US$100,000 (±AU$148,000) Brand marketing activity
     - US$200,000 (±AU$296,000) IR / PR costs
 ·   Legal fees US$200,000 (±AU$296,000), including LSE lawyers and LSE prospectus

 

The Company will issue 1,480,000 Placement Shares using its placement capacity
under ASX Listing Rule 7.1A, with a further 740,000 Placement Options to be
issued using its placement capacity under ASX Listing Rule 7.1.

 

The Company confirms that no participants in the Placement were:

 

 ·   Related parties of the Company, members of the Company's key management
     personnel, substantial holders of the Company, advisers of the Company or an
     associate of any of these parties; and
 ·   Issued more than 1% of the issued capital of the Company.

 

Roby Zomer, CEO and Managing Director of MGC, commented: "This year has been a
significant period of progress. This is a testament to the hard work and
dedication of our team and we are excited about the opportunities that these
additional funds will unlock as we continue to drive innovation, expand our
operations, and create long-term value for our stakeholders. We are grateful
for the trust placed in us and look forward to a promising future of sustained
growth and success as the Company enters an exciting stage in its
development."

 

-Ends-

 

Authorised for release by the board of directors, for further information
please contact:

 MGC Pharmaceuticals Ltd                                                  MGC Pharmaceuticals Ltd

 Roby Zomer                                                               Rowan Harland

 CEO & Managing Director                                                  Company Secretary

 +61 8 6555 2950                                                          +61 8 6555 2950

 info@mgcpharma.co.uk (mailto:info@mgcpharma.co.uk)                       info@mgcpharma.co.uk (mailto:info@mgcpharma.co.uk)

 UK IR/PR Advisers                                                        UK Brokers

 IFC Advisory                                                             Oberon Capital

 Graham Herring / Tim Metcalfe / Zach Cohen                               Aimee McCusker / Adam Pollock

 +44 203 934 6630                                                         +44 203 179 5300

 mgcpharma@investor-focus.co.uk (mailto:mgcpharma@investor-focus.co.uk)   aimeemccusker@oberoninvestments.com
                                                                          (mailto:aimeemccusker@oberoninvestments.com) adampollock@oberoninvestments.com
                                                                          (mailto:adampollock@oberoninvestments.com)
 Capital Blossom Ltd

 Arfan Afzal

 info@capitalblossom.co.uk (mailto:info@capitalblossom.co.uk)

 www.capitalblossom.co.uk (http://www.capitalblossom.co.uk)

About MGC Pharma

MGC Pharmaceuticals Ltd (LSE: MXC, ASX: MXC) is a prominent European
pharmaceutical company with a strong commitment to creating accessible and
ethically produced cutting-edge medicines. Our approach combines in-house
research with innovative technologies, all aimed at discovering and producing
treatments for currently unmet medical conditions.

 

The company's founders and executives are distinguished figures in the global
pharmaceutical industry. Our central business strategy revolves around the
development and supply of innovative medicines, responding to the increasing
demand in the medical markets of Europe, North America, and Australasia.

 

MGC Pharma maintains a robust development pipeline that addresses two
prevalent medical conditions, with additional products currently in the
developmental stages. We've established strategic partnerships with renowned
institutions and academia, fostering the optimization of our medicines'
development. These medicines are produced in our EU-GMP Certified
manufacturing facilities, ensuring the highest quality standards.

 

With a growing patient base in key regions like the USA, UK, Australia, and
Ireland, MGC Pharma has also built a global distribution network through a
wide-reaching group of commercial partners. This extensive network places us
in a prime position to supply the global market effectively.

MGC Pharma has a growing patient base in Australia, the UK, Brazil and Ireland
and has a global distribution footprint via an extensive network of commercial
partners meaning that it is poised to supply the global market.

 

Follow us through our social media channels:

Twitter: @MGC_Pharma

Facebook: @mgcpharmaceuticals

LinkedIn: MGC Pharmaceuticals Ltd.

Instagram: @mgc_pharma

 

Forward Looking Statements

This announcement may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "anticipates", "targets", "aims",
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"should" or, in each case, their negative or other variations or comparable
terminology. These forward-looking statements include matters that are not
facts. They include statements regarding the Directors' beliefs or current
expectations. By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances. Investors
should not place undue reliance on forward-looking statements, which speak
only as of the date of this announcement.

 

 

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