MXC to acquire Licensed European Medical Cannabis Company
Published 27-APR-2016 13:20 P.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
MGC Pharmaceuticals (ASX:MXC) has executed a binding Heads of Agreement (HOA) to acquire Czech-based medical cannabis company, PANAX Pharma s.r.o.,.
Subject to the completion of due diligence, MGC Pharma will receive 25% equity issued up front and 55% equity issued for MXC’s commitment to fund operating costs for the next year up to €700,000 (AU$1,021,080).
The final commercial term is an option to acquire the remaining 20% at MXC’s election for €800,000 of MGC Pharma ordinary shares.
The deal gives MGC Pharma access to the state of the art Vukoz Production facility.
MGC will start immediate work with the government run Vukoz Institute on a research and development program to grow medical grade cannabis. The medical cannabis license includes access to over 1000m2 of indoor growing space at the Vukoz facility.
Growing and cuttings from the Vukoz Institute Laboratory.
The research being conducted at the facility is focused on developing high cannabidiol (CBD) and high THC strains alongside Tissue Culture mediums and protocols. The outcomes of the research and new genetics will be utilised for MXC’s growing operations and for use in the clinical trials of MXC’s Derma Cosmetic products, which will include treatment for psoriasis and acne.
The Derma brand of product are produced in Slovenia.
Through Panax’s licensing agreement, MGC Pharma will also have the ability to take and commercially utilise the waste biomass from the research facilities for the production of CBD extract, combined with a license for the import and export of medical cannabis.
As an indoor operation the Vukoz facility has year-round growing cycles and anticipates being able to treat over 1400kg of medical cannabis biomass waste, which MXC estimates can be processed into 90kg of CBD extract per year.
The acquisition gives MXC the ability to grow different strains of CBD to be used for different purposes and the research and development license enables the production of medical cannabis without the quantity restrictions applied to THC content, which is responsible for the psychoactive effects of cannabis. This open up the door for MXC to produce a large variety of medical grade cannabis products and materials in Europe under the license agreements held by Panax.
“Our acquisition of Panax significantly strengthens MGC Pharma’s medical cannabis research and production capabilities,” said co-founder and Managing Director of MGC Pharmaceuticals Nativ Segev.
“Not only does it build on our outdoor Slovenian growing facility and production capacity, it also allows the company to produce high intensity medical grade cannabis products for our clinical trials and research programs planned for Israel, Europe and eventually Australia.”
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
