Description: CannaTech Conference attended by MGC Pharmaceuticals in London, October 2017.
Description: Interview of Nitin Mantri, Senior Lecturer at RMIT University, as he discusses the first project of the collaboration between MGC Pharma and RMIT.
ABOUT MGC DERMA
MGC Derma is a leading cannibidiol (CBD) cosmetic brand with distribution deals signed across multiple markets and an aggressive growth plan to expand across a number of potential new markets. There are currently 15 MGC Derma branded, cannibidiol (CBD) based cosmetic products available for sale which are sold through an online retail shop as well as through exclusive wholesale distribution deal and e-tail and retail agreements.
The Company will launch new product lines in the UK and Australia in 2018, including its Derma Plus products relieving the symptoms of psoriasis, eczema and acne.
LATEST DIVISIONAL NEWS
MGC Derma signs $40m white-label cosmetics agreement executed with Korean cosmetics manufacturer
MGC Derma has signed a binding sale agreement with Varm Cosmo Inc.for a minimum contracted volume of $8,000,000 of product to supply five of its cannibidiol (CBD) cosmetic products in bulk form, to be sold to consumers as part of Varm Cosmo’s cosmetics range.
This binding sales contract is only the first to be executed and based on minimum volume, with 2 additional binding Varm Cosmo contracts expected to be closed in coming weeks.The additional 2 binding sales agreements currently being finalised are structured to deliver the full $40,000,000 Terms and Conditions Supply Agreement signed on 20 October 2017
Under this $8m binding sales agreement, MGC Pharmaceuticals’ Pharma division will supply approximately 30kg of pure CBD per annum to MGC Derma – material new direct income stream for MXC. MGC Derma is a 51:49 joint venture with well-credentialed cosmetic manufacturer, Dr M. Burstein Ltd. MGC Pharmaceuticals owns 51% and holds management control.
The deal will deliver an immediate revenue stream with a strong gross profit margin to the Company.
Further information on the deal can be found by viewing the announcements dated 20 October 2017 and 30 October 2017.
MGC’s Botanic Division engages with multiple cultivation sites to meet increasing global demand for high quality raw materials, alongside research into breeding and genetics with leading institutions and academia. MGC Botanic harvest product in Slovenia and Czech Republic, and use the raw material at MGC’s own production facility, as well as providing the product globally.
LATEST DIVISIONAL NEWS
Breeding and Cultivation Research Operations – Czech Republic MGC Pharmaceuticals’ has recently completed harvest at our facility in the Czech Republic. The Company’s Panax operation progressed with over 450 medicinal cannabis plants entered the flowering phase after being transferred into the Company’s larger 1,100m2 glass house facility in June 2017. The growth and yield from the plants was better than expected for a first time crop in a new facility. Harvesting of the plants has produced over 400kg of high CBD and THC flowers. Working with the government’s Institute of Experimental Botany, the parameters of this cultivation cycle will be analysed to further optimise the Company’s growing protocols and maximise the yield of the medicinal cannabis strains.
Once harvested, biomass will be processed into CBD crystals for MGC Pharmaceuticals products including its MGC Derma cosmetics and for its clinical studies. The remaining biomass will be sold as Aquiol, a rich CBD >98% purity raw material.
Breeding and Cultivation Research Operations – Slovenia The Botanic division’s collaboration with the University of Ljubljana is also progressing on schedule in Slovenia. Following the planting of medicinal cannabis seeds for its genetic research program in June 2017, the plants have now progressed to the flowering phase. The program aims to create genetic strains with high levels of cannabidiol (CBD) and new strains with high tetrahydrocannabinol (THC) levels for the treatment of specific disease symptoms. The team will now commence the first phase of the research project which focuses on the implementation and optimisation of molecular markers for sex determination and distinction between strains, as well as developing protocols for both.
Raw Material Production The Company’s raw material production at its open field farm in Slovenia has also delivered encouraging production volumes. As planned, the Company has completed harvesting of its cannabis crops, yielding 4,000 kg of biomass in early October 2017. This biomass is now being dried and prepared for processing at MGC Pharmaceuticals European clean room and CO2 extraction facility where it will be turned into food grade cannabis. The CBD will be used for MGC Pharma’s nutrient and MGC Derma cosmetics products, with the remaining product being sold in the European market as Aquiol.
ABOUT THE MGC PHARMA DIVISION
MGC Pharma is focused on the medical research and development of the Company’s pharmaceutical products pipeline. The Pharma division holds unique IP which places the Company at the forefront of research and development for indications that will serve large global markets.
The Pharma division is focused on three specific areas of treatment:
Neurological disorders, including proprietary formulations for Epilepsy;
Oncological care and treatment; and
LATEST DIVISIONAL NEWS
Binding HOA signed for multi million dollar Australian pharmaceutical market entry
MGC has signed a binding Heads of Agreement (“HOA”) with leading Australian specialist pharmaceutical wholesaler and distributor, HL Pharma Pty Ltd, to bring its adult medical cannabis epilepsy product, CannEpilTM, to Australian patients from early 2018. Under the terms of the binding HOA, a formal Definitive Agreement is to be finalised and executed between the parties shortly.
Under the arrangement, MGC Pharmaceuticals will leverage its existing relationship with Epilepsy Action Australia (EAA), established in September 2016, and its scientific board of advisors Prof Uri Kramer and Prof David Neubauer, to rapidly build an Australian patient market for the product through authorised prescribing doctors. The Company has already built links with an initial group of five doctors that have expressed an interest in prescribing the product, which will provide access to a starting a pool of more than 50 patients.
According to EAA, approximately 25,000 people are diagnosed with epilepsy each year and it is estimated that up to 240,000 Australians are currently living with epilepsy. MGC Pharmaceuticals’ CannEpilTM product is targeted for drug-resistant epilepsy (DRE), also known as refractory epilepsy, which accounts for approximately 30% of all epilepsy cases.
CannEpilTM is MGC Pharmaceuticals’ adult medical cannabis product for the relief of refractory epilepsy. It will be sold as a 50ml bottle containing 100mg/mL of CBD and Cannabinoids, which is administered orally, and is expected to be available to patients with an authorised doctor’s prescription for a regular retail price under A$800. CannEpilTM boasts a price point that is significantly lower than the current competing product on the market, making it an attractive consumer product and affordable for patients.
The announcement dated 1 November 2017 in relation to the Binding HOA with HL Pharma can be viewed by clicking here.
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