MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, ASX:MXC) said it has raised £5.5mln via a share placing – cash that will be used to fund emergency use authorisation applications for the use of its lead asset in COVID.
It said it plans to begin the approval process for CimetrA in India before rolling it out to a total of five countries in central and eastern Europe and central Asia.
CimetrA is a pharmaceutical synthetic composition of Curcumin and Boswellia that is thought to have an anti-inflammatory effect as well as potentially modulating the immune system.
Proceeds from the latest fundraiser will also be deployed on the fit-out and commissioning of the group’s new Malta facility, expected to come online in the second half of next year, and will also meet the costs of CimetrA in the US and Russia.
“This latest fundraise will provide MGC Pharma the capital required to continue the excellent progress we have made this year with our clinical pipeline,” said managing director Roby Zomer.
“In the last few months, we have made real progress on advancing CimetrA towards emergency use authorisation in key territories, all while achieving record revenue figures on our existing products, including ArtemiC. W
“With the completion of our CimetrA production facility in Malta now awaiting its fit-out, we will soon be in a position to meet the expected demand for this product when we achieve emergency use approval in key territories and really make a difference to the treatment of COVID-19 patients.”
MGC issued new shares at 2p each, a modest discount to Monday’s (Nov 29) closing price.
The company is a specialist in plant-derived therapeutics.