MGC Pharmaceuticals completes share consolidation, ~US$8 million capital raise
Company says it’s fully funded and well-positioned to proceed with pharmaceutical work plan for 2024
Has achieved ‘remarkable milestones over the past year’
Special Report: European based biopharma MGC Pharmaceuticals has finalised a share consolidation and ~US$8 million funding as the company confidently looks towards the future of its drug development program.
MGC Pharmaceuticals (ASX:MXC) (LSE:MXC) has announced that following shareholder approval at a general meeting, the consolidation of its total issued capital on a 1:1,000 basis has been completed, along with the settlement of the US $7.9million share placement.
Upon completion of the consolidation and placement, MXC’s capital structure will consist of:
35,430,491 fully paid ordinary shares
215,500,000 unlisted options exercisable at US$0.32 on or before 7 November 2028
858,824 unlisted options (various ex price from GBP 1.20 to A$13.00, April 2024-July 2026)
18,400 performance rights
7,306,432 convertible notes (Mercer Opportunities Fund)
Managing director and CEO Roby Zomer says he’s excited to see the company successfully conclude its full capital restructure and capital raise, which was well supported by high-net-worth investors from the US and Europe.
“These individuals fully understand the company’s long-term potential and are committed to supporting its operations, execution of the business plan to maximise the MGC Pharma enterprise value and shareholder returns.
“As of today, our company is now fully funded and well-positioned to proceed with the execution of its pharmaceutical work plan for 2024.”
Onwards and upwards with promising program
Zomer says MXC is showing promising growth potential driven by its pharmaceutical development and medicine sales.
“Our strategic focus includes an initial entry into the lucrative US market by submitting IND applications for CimetrA and Cannepil to the US FDA,” he says.
“Additionally, we anticipate significant developments stemming from the dose-finding study for CimetrA and the progression of Phase 2 studies for Cannepil.”
CimetrA is a phyto medicine based on natural ingredients from curcumin and Boswellia serrata and has demonstrated effectiveness in arresting the cytokine storm in Covid-19 patients in late-stage trials.
CannEpil is also a phyto medicine, based on phytocannabinoids currently being investigated for the treatment of refractory epilepsy, which accounts for ~25% of the people diagnosed with epilepsy.
“In tandem with our clinical advancements, we foresee the company expanding its sales through the early patient access scheme for CannEpil in Ireland and the UK, while bolstering CimertA sales through partnerships with AMC Pharma in the US and Middle East.”
Silver lining in tough year for high growth health stocks
Zomer acknowledges with tighter economic conditions and higher costs of funding it has been a tough year for high growth health stocks, including MXC.
However, he says while besides trying to raise money in the UK with very limited success and seeing its share price tumble, MXC has achieved “remarkable milestones over the past year” which are worth noting.
“Firstly, we successfully launched Cannepil in the UK market, with the NHS enrolling its first patient in the RASCAS program,” he says.
“Additionally, significant progress was made in the clinical development of CimetrA, with the successful completion of Preclinical and Phase 2 studies, positioning us for the planned IND submission to the FDA in the first quarter of 2024.”
Zomer says furthermore, MXC secured an additional order of $1 million from AMC Pharma for ArtemiC (an OTC version of CimetrA), with the down payment already received.
“In tandem with these two leading drug developments, both clinically and commercially, the company has also made substantial strides on the ground,” he says.
“We’ve achieved the completion and commissioning of our state-of-the-art fully automated EU GMP Pharma manufacturing facility in Malta.
“Notably, we’ve received approval for research and development in psilocybin new drugs, which will serve as third-party service platforms for other pharmaceutical companies.”
This article was developed in collaboration with MGC Pharmaceuticals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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