MGC Pharmaceuticals - MGC Pharma Launches Share Purchase Plan

Argent BioPharma

01/08/2023 08:56

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RNS Number : 8932H  MGC Pharmaceuticals Limited  01 August 2023

1 August 2023

 

ASX Code: MXC

LSE Code: MXC

MGC Pharmaceuticals Ltd

MGC Pharma Launches Share Purchase Plan

MGC Pharmaceuticals Ltd ("MGC Pharma", "MGC" or the "Company") is pleased to
announce a Share Purchase Plan ("SPP") for its Australian shareholders to
raise up to $2,685,728.

The Company proposes to offer each shareholder with a registered address in
Australia ("Eligible Shareholders") as at 5:00pm (AWST) on 31 July 2023
("Record Date") an opportunity to subscribe for up to A$30,000 of new fully
paid ordinary shares in the Company ("SPP Shares"), together with one (1) free
attaching SPP Option (defined below) for every 2 SPP Shares subscribed for, by
way of a SPP.

The issue price of the SPP Shares will be $0.0023 per SPP Share (0.23c),
representing a 14.56% discount to the 5-day VWAP for the last 5 trading days
prior to this announcement, ($0.00269) and a 23.3% discount to today's closing
price of $0.003. The issue price of 0.23c per SPP Share is at the same price
for Australian shareholders as the recently completed placement in the United
Kingdom, as announced on 14 July 2023. As stated above, Eligible Shareholders
will also be offered 1 free attaching option (with an exercise price of $0.003
(0.30c) and an expiry date of 31 July 2026) for every 2 SPP Shares subscribed
for and issued under the SPP ("SPP Options").

The issue of the SPP Options is subject to shareholder approval to be sought
at an upcoming general meeting of the Company ("General Meeting") and the SPP
Shares will be issued pursuant to a prospectus to be released to the ASX in
the coming days. If shareholder approval is not obtained at the General
Meeting, the issue of the SPP Options will not proceed. Under the SPP, each
Eligible Shareholder who held Shares in the Company at the Record Date will be
entitled to acquire SPP Shares up to the value of $30,000, together with one
(1) SPP Option for every 2 Shares subscribed for.

Mr Roby Zomer, Managing Director and CEO of the Company, intends to
participate in the SPP for up to $30,000 worth of SPP Shares, together with
one (1) SPP Option for every 2 Shares subscribed for. The issue of SPP Options
to Mr Zomer is subject to shareholder approval to be sought at the General
Meeting.

Whilst the Company intends to raise $2,685,728 under the SPP, MGC reserves the
right to scale back applications under the SPP.

The capital raised under the SPP will be used for production, raw material and
laboratory costs associated with production of the Company's lead GMP
cannabinoid medicines CannEpil and CogniCann, as well as to service existing
debt, corporate and audit costs and ongoing working capital.

The SPP Shares to be issued will rank equally with existing MGC shares.

An indicative timetable for the capital raising is set out below:

 SPP record date                                31 July 2023 at 5:00pm (WST)
 Lodgement of SPP prospectus with ASIC and ASX  3 August 2023
 SPP offer opening date                         4 August 2023
 SPP offer closing date                         18 August 2023
 Issue of SPP offer shares                      24 August 2023
 Shareholder approval to issue SPP options      5 September 2023
 Issue of SPP offer options                     6 September 2023

-Ends-

Authorised for release by the Managing Director, 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)

About MGC Pharma

MGC Pharmaceuticals Ltd (LSE: MXC, ASX: MXC) is a European based
pharmaceutical company, focused on developing and supplying accessible and
ethically produced plant derived medicines, combining in-house research with
innovative technologies, with the goal of finding or producing treatments to
for unmet medical conditions.

The Company's founders and executives are key figures in the global
pharmaceuticals industry and the core business strategy is to develop and
supply high quality plant inspired medicines for the growing demand in the
medical markets in Europe, North America and Australasia.

MGC Pharma has a robust development pipeline targeting two widespread medical
conditions and has further products under development.

MGC Pharma has partnered with renowned institutions and academia to optimise
the development of targeted plant derived medicines, to be produced in the
Company's EU-GMP Certified manufacturing facilities.

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:

LinkedIn: MGC Pharmaceuticals Ltd.

Twitter: @MGC_Pharma

Facebook: @mgcpharmaceuticals

Instagram: @mgc_pharma

 

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