MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, ASX:MXC) has completed an internal cost review as part of an ongoing strategic review of its business and operations and has implemented further cost reductions.
In doing so, MXC will be able to put more working capital towards advancing its clinical trial and research programs in 2023: the European-based pharmaceutical company specialises in the production and development of plant-inspired medicines.
Cost reductions
The MXC board has agreed to an immediate ~35% reduction in director fees. This reduction came into effect on December 1, 2022.
Further to this, the key executive officer team (ie, non-directors) have also agreed to a 10-20% reduction in their cash remuneration, with only the key executive officers to be issued MGC shares in lieu of the reduction in their cash salary.
MXC has made the decision to cut costs due to the current economic climate and is now focused on reallocating working capital to the prioritised clinical and research programs in 2023, retaining experienced executives to execute its business plans and better aligning executives’ pay with shareholder returns.
Director resignation
As MXC looks to transition to a dedicated life sciences pharmaceuticals company, it has also undergone a board restructure with the resignation of non-executive director Evan Hayes effective January 1, 2023.
As a result of Hayes’ departure, the MXC board will be reduced to five directors, with the company continuing to evaluate the composition of the board over the next six months to ensure that it reflects its position as a European-based life sciences pharmaceutical company.