REG - MGC Pharmaceuticals - September 2023 Quarter Activity Report
30/10/2023 08:30
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RNS Number : 6878R MGC Pharmaceuticals Limited 30 October 2023
MGC Pharmaceuticals Ltd.
September 2023 Quarter Activity Report and
Cash Flow Statement
30 October 2023
ASX, LSE: MXC
Key Highlights:
· MGC received an order for US$1m from AMC Pharma ("AMC") to
produce ArtemiC™ (the Over the Counter ("OTC") version of CimetrA®). This
order comes alongside AMC's new supply agreement to distribute to over 100
Holistic and Wellness Chiropractic offices in California, and Florida
· Positive results from Pre-clinical Chronic Toxicology Evaluation
of 14 days oral dose of CimetrA®
· New regulation in Australia was passed making it the first
country to allow psychiatrists to prescribe psilocybin psychedelics to treat
depression or post-traumatic stress disorder (PTSD)
· MGC was granted its first permit to import 200g of Psilocybin Raw
Mushroom material to its Slovenian research facility
· The Company conditionally raised A$1.24 million by way of a
placing and subscription
· MGC successfully completed a Share Purchaser Plan raising
A$834,000
MGC Pharmaceuticals Ltd (MGC Pharma, MGC or the Company) a European based
pharmaceutical company specialising in the production and development of plant
derived medicines, is pleased to provide its Quarterly Activity Report for the
three months ending 30(th) September 2023.
Roby Zomer, Managing Director and CEO of MGC Pharma, commented: "We are
pleased to report on a productive September quarter for the business. MGC has
received an order for US$1m from AMC Pharma to produce ArtemiC™ . This
order comes alongside AMC's new supply agreement to distribute to over 100
Holistic and Wellness Chiropractic offices in California, and Florida. The
Company has also been granted its first import permit to its Slovenian
research facility."
Key Company Activities
US$1M Order of ArtemiC™ Placed by AMC
MGC received an order for US$1m from AMC Pharma to
produce ArtemiC™ (the Over the Counter ("OTC") version of CimetrA®).
This order came alongside AMC's own separate supply agreement to distribute to
over 100 Holistic and Wellness Chiropractic offices in California, and
Florida. This represents the start of a substantial ramp up of sales
for ArtemiC™ with increasing distribution across the US. To date, the
Company has received total orders of over 100,000 units of ArtemiC™ By
AMC.
Positive Pre-clinical Trial Results for CimetrA®
On 14 August 2023 MGC announced positive pre-clinical trial results from the
completed Pre-clinical Chronic Toxicology Evaluation of 14 days oral dose of
CimetrA®.
The recently completed study was undertaken on 32 domestic swine, that
received a study treatment (three dosages groups of CimetrA® and Placebo) for
14 days. During this period, the clinical parameters were recorded, blood
(hematology, coagulation and chemistry) and urine tests were collected and
sent to the histopathological evaluation.
The study demonstrated that following the full chronic safety and toxicology
analysis of CimetrA® in large animals - the drug was found to be safe. The
histopathological analysis of the full organs spectrum demonstrated all
tissues of all animals were normal and unaffected. It was concluded that the
test article at the dosage administered did not induce toxicological changes.
No changes in the blood and urine samples were reported.
The study was performed under animal EC approval in the GLP certified Lab
Science in Action, Ness Ziona, Israel, and is an important step in the
Investigational New Drug ("IND") submission preparation for the US Food and
Drug Administration ("FDA"). The study was designed and managed according to
industry guidelines and the IND submission is planned for Q1 2024.
MGC Welcomes Australia's Reclassification of Psychedelic Compounds
During the quarter, MGC welcomed new regulation in Australia to prescribe
psychedelics to patients with depression or post-traumatic stress disorder
(PTSD). Effective from 1st July 2023, MDMA and Psilocybin were reclassified as
medicines for some complex mental health conditions. Authorities in Australia
placed the two drugs on the list of approved medicines by the Therapeutic
Goods Administration, allowing patients suffering from depression and PTSD to
access them under the care of authorised Australian physicians.
Following the latest regulatory advancements, MGC is able to position itself
as a key player in pioneering psychedelic research and development and as a
result, the Company can now offer accurate, pharmaceutical-grade products. MGC
will look to expand sales in Australia through the Company's existing channels
to provide Psilocybin to those in need of treatment.
MGC Pharma Received Permission to Import Psilocybin
On 31 July 2023 MGC announced they had been granted its first import permit of
Psilocybin Raw Mushroom material to its Slovenian research facility from
Psyence Group Inc's (Psyence) Southern Africa production site as part of the
raw material transfer agreement (transfer agreement) signed between the two
companies.
Under the transfer agreement, MGC Pharma will perform an analysis on the
materials with a view to assist Psyence in the development of new psilocybin
products to take to market, through its GMP-certified research facility in
Slovenia that was recently approved for psilocybin compounding.
September Quarter Sales Update
September Quarter Sales Update MGC Pharma revenue in the June quarter were in
line with the quarterly average sales.
Activities Post Quarter End
The Company held a general meeting on 25 October 2023. The subsequent approval
of all resolutions has allowed MGC to conduct a consolidation of the Company's
capital on a 1,000:1 basis as well as provide approval for a capital raise to
give the company sufficient funding for the following 12 months. Additionally,
the Company will hold its annual general meeting on 30 November 2023.
Corporate and Commercial News
Funding and Cashflow Reporting
During the quarter, the Company conditionally raised £0.65 million (A$1.24
million) (before expenses) by way of a placing and subscription of 541,666,667
new ordinary shares of no-par value (Ordinary Shares) in the capital of the
Company (Fundraising Shares) at a price of 0.12 pence (0.23 cents) per
Fundraising Share ("Issue Price"). The Company also agreed to issue one free
attaching option exercisable at 0.12 pence (0.23 cents) with an expiry date of
14 July 2026 for every one Fundraising Share subscribed for under the
Placement and Subscription.
Additionally, the Company launched a Share Purchase Plan to its Australian
shareholders to raise up to $2,685,728. The Company received applications from
eligible shareholders totalling A$834,000 to subscribe for 362,608,570 new
fully paid ordinary shares in the capital of the Company at A$0.0023 (0.23
cents) per Share, with A$1,851,728 to be placed under a Shortfall Offer.
Subject to shareholder approval to be sought at the Company's upcoming general
meeting on 5 September 2023, applicants will receive one free attaching option
exercisable at A$0.003 (0.3 cents) each on or before 31 July 2026 (Options)
for every two (2) Shares subscribed for under the SPP, being 181,304,269
Options.
At the end of the September, the Company has ~A$417k of cash on hand.
Accompanying this Activity Report is a Cash Flow Report for the Quarter ending
30 September 2023.
In accordance with ASX Listing Rule 4.7C.3 the Company advises that during the
September 2023 quarter, payments to related parties totalled A$129k, which
consisted of fees paid to executive and non-executive directors of the
Company.
As detailed in the accompanying Appendix 4C (Quarterly Cashflow Report),
cashflows during the quarter included A$285k cash outflows associated with
inventory production, A$1.015 million for administration costs (including
product registration costs), and cash inflows of A$2.5m including funding
received from the Placement conducted in July and the Share Purchase Plan in
August.
Personnel Changes
On 28 July 2023 Mr Arron Canicais resigned as Joint Company Secretary, with Mr
Rowan Harland remaining as the sole Company Secretary. The Company thanked Mr
Canicais for his contributions to the Company and wished him the very best for
the next stage of his career.
Change of Registry Address
In accordance with ASX Listing Rule 3.15.1 and effect from Monday, 18
September 2023, the Perth office of Computershare Investor Services Pty
Limited moved to Level 17, 221 St Georges Terrace, Perth WA 6000.
Telephone numbers and postal address remained unchanged. Lodgement of
documentation by member organisations, securityholders and other parties must
be made at the new address.
-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)
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 medicines, combining in-house research with innovative
technologies, with the goal of finding or producing treatments 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 innovative medicines.
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 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
Appendix 4C
Quarterly cash flow report for entities
subject to Listing Rule 4.7B
Name of entity
MGC PHARMACEUTICALS LTD
ABN Quarter ended ("current quarter")
30 116 800 269 30 September 2023
Consolidated statement of cash flows Current quarter $A'000 Year to date (3 months)
$A'000
1. Cash flows from operating activities
1.1 Receipts from customers 511 511
1.2 Payments for
(a) research and development (97) (97)
(b) product manufacturing and operating costs -
i) cost of sales / inventory (285) (285)
ii) operating costs - -
(c) advertising and marketing (118) (118)
(d) leased assets - -
(e) staff costs (1,375) (1,375)
(f) administration and corporate costs (including product (1,015) (1,015)
registrations)
1.3 Dividends received (see note 3) - -
1.4 Interest received - -
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives 2 2
1.8 Other (GST/VAT refund) - -
1.9 Net cash from / (used in) operating activities (2,377) (2,377)
2. Cash flows from investing activities
2.1 Payments to acquire: - -
(a) entities - -
(b) businesses - -
(c) property, plant and equipment (14) (14)
(d) investments - -
(e) intellectual property - -
(f) other non-current assets - -
2.2 Proceeds from disposal of: - -
(a) entities
(b) businesses - -
(c) property, plant and equipment - -
(d) investments - -
(e) intellectual property - -
- -
(f) other non-current assets
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (cash acquired through assets acquisition) - -
2.6 Net cash from / (used in) investing activities (14) (14)
3. Cash flows from financing activities
3.1 Proceeds from issues of equity securities (excluding convertible debt 1,986 1,986
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt (210) (210)
securities
3.5 Proceeds from borrowings 777 777
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (loan entity which where control was gained after quarter-end) - -
3.10 Net cash from / (used in) financing activities 2,553 2,553
4. Net increase / (decrease) in cash and cash equivalents for the period Current quarter Year to date (3 months)
$A'000
$A'000
4.1 Cash and cash equivalents at beginning of period 259 259
4.2 Net cash from / (used in) operating activities (item 1.9 above) (2,377) (2,377)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (14) (14)
4.4 Net cash from / (used in) financing activities (item 3.10 above) 2,553 2,553
4.5 Effect of movement in exchange rates on cash held (4) (4)
4.6 Cash and cash equivalents at end of quarter 417 417
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash
$A'000
$A'000
flows) to the related items in the accounts
5.1 Bank balances 391 233
5.2 Call deposits 26 26
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 417 259
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 129
in item 1
6.2 Aggregate amount of payments to related parties and their associates included -
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
The payments in 6.1 are payments to directors of the company for their service
during the quarter and to related party Graft Polymer.
7. Financing facilities available Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements
$A'000
$A'000
available to the entity.
Add notes as necessary for an understanding of the sources of finance
available to the entity.
7.1 Loan facilities - -
7.2 Credit standby arrangements - -
7.3 Other (please specify) 14,600 6,948
7.4 Total financing facilities 14,600 6,948
7.5 Unused financing facilities available at quarter - 7,652
end
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
$14.6M Convertible note facility with Mercer Street Opportunity Fund LLC.
Refer to ASX announcement on 29 July 2022 for further information.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (Item 1.9) (2,377)
8.2 Cash and cash equivalents at quarter end (Item 4.6) 417
8.3 Unused finance facilities available at quarter end (Item 7.5) 7,652
8.4 Total available funding (Item 8.2 + Item 8.3) 8,069
8.5 Estimated quarters of funding available (Item 8.4 divided by Item 8.1) 3.4
Note: if the entity has reported positive net operating cash flows in
item 1.9, answer item 8.5 as "N/A". Otherwise, a figure for the estimated
quarters of funding available must be included in item 8.5.
8.6 If Item 8.5 is less than 2 quarters, please provide answers to the following
questions:
1. Does the entity expect that it will continue to have
the current level of net operating cash flows for the time being and, if not,
why not?
Answer: N/A
2. Has the entity taken any steps, or does it propose to
take any steps, to raise further cash to fund its operations and, if so, what
are those steps and how likely does it believe that they will be successful?
Answer: N/A
3. Does the entity expect to be able to continue its
operations and to meet its business objectives and, if so, on what basis?
Answer: N/A
Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2
and 8.6.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with
accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
27 October 2023
Date:
...................................................................................
[lodge
electronically without signature]
Authorised by:
...................................................................................
Roby Zomer - Managing Director
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 107: Statement of Cash Flows apply to this report. If this
quarterly cash flow report has been prepared in accordance with other
accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the
corresponding equivalent standard applies to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to
the market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
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