TIDMMXC
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(R) and CannEpil(R). 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 info@mgcpharma.co.uk
UK IR/PR Advisers UK Brokers
IFC Advisory Oberon Capital
Graham Herring / Tim Metcalfe / Aimee McCusker / Adam Pollock
Zach Cohen +44 203 179 5300
+44 203 934 6630 aimeemccusker@oberoninvestments.com
mgcpharma@investor-focus.co.uk adampollock@oberoninvestments.com
Capital Blossom Ltd
Arfan Afzal
info@capitalblossom.co.uk
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
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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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END
UPDFEASUEEDSESE
(END) Dow Jones Newswires
December 22, 2023 04:09 ET (09:09 GMT)
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