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MGC Pharmaceuticals raises £6.5mln and joins London's growing cannabis sector

The medicinal cannabis developer was valued at £33.7mln on London debut

MGC Pharmaceuticals Ltd - MGC Pharmaceuticals completes £6.5mln capital raise as it debuts London market

MGC Pharmaceuticals Ltd (ASX:MXC) (LON:MXC) announced it has completed a £6.5mln capital raise as it became the first cannabis-sector company to float on London’s main market.

The number of shares in issue following the conclusion of the initial public offering on Tuesday will be 441mln, valuing the medicinal cannabis developer at £33.7mln.

WATCH: MGC Pharmaceuticals get set for LSE debut as first medicinal cannabis company listed on main market

MGC, which is based in European and is also listed in Australia, said the placing was oversubscribed and counted 442mln ordinary shares at 1.475p each placed to UK institutional funds, high net worth family office and professional investor clients of Turner Pope Investments.

The IPO proceeds will be used to advance clinical trials of two drug candidates, increase distribution and complete construction of manufacturing facilities in Malta.

With a focus on the use of cannabis-derived medicines in the areas of neurology, oncology and autoimmune diseases, MGC will use part of the funds to pay for a Phase IIb clinical trial of one of its phytocannabinoid-derived medicines, CannEpil, which is designed as a treatment for refractory epilepsy.

The funds will alo be used to pay for the Phase III clinical trial of ArtemiC for treatment of COVID-19 patients, which is planned for the first half of 2021.

Another lead candidate is CogniCann, designed to improve dementia and Alzheimer's disease for patients' quality of life.

MGC Pharma, which generated revenues of AU$2.1mln (£1.1mln) in 2020, is focusing research in three core areas: neurology, oncology and autoimmune diseases and is eyeing continued sales growth.

 

Quick facts: MGC Pharmaceuticals Ltd

Price: 0.056 AUD

ASX:MXC
Market: ASX
Market Cap: $124.81 m
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