MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, ASX:MXC) has entered into a US$10 million financing agreement with Mercer Street Global Opportunity Fund LLC, a fund managed by US-based Mercer Street Capital Partners, which is also the company’s largest shareholder.
This financing facility provides the company with access to significant capital in order to execute its business commercialisation strategy.
The first tranche of US$1.20 million will be provided to MGC upon satisfaction of the closing conditions, through the issue of 1.32 million convertible notes with a face value of US$1 each to Mercer Street.
Subsequent tranches of funding are available up to a value of US$8.8 million within 18 months of execution of the agreement.
Fast-track activities
MGC co-founder and managing director Roby Zomer said: “This US$10 million agreement is a testament to the progress we have made over the last 18 months.
“The partnership with Mercer will allow us to fast track our commercial and clinical activities and advance our company growth strategy.”
Business commercialisation strategy
MGC has a business commercialisation strategy with Sciensus Rare in the UK and EU and AMC in the USA.
The company also plans to advance the regulatory approvals for its proprietary products to drive revenues, assist in the rollout of the ZAM App and provide funding for its general corporate expenses.
MGC will continue to implement significant non-revenue driving cost controls within the operations, including the delay of non-core clinical trials, and will look to use funding under this agreement selectively to support new growth and strategic initiatives.
Mercer Street managing partner Jonathan Juchno said: “Having been a shareholder for the last two years, we have been fortunate to witness first-hand the progress made by MGC Pharma and we are excited to continue our relationship with them and to support the efforts of management in bringing their products to market.”