MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, ASX:MXC) has drawn the final project payment needed to bring its Malta-based phytomedicine manufacturing hub to life.
The European biopharma company took out a US$750,000 tranche from its US$10 million financing facility with the Mercer Street Global Opportunity Fund, managed by US institutional fundie Mercer Street Capital Partners.
MGC inked the deal back in July, providing cashflow to get its good manufacturing process (GMP) plant up and running.
Now, funds from the final tranche of the facility will cover the final construction and equipment fit-out costs at the hub.
Once it receives the cash injection, MGC will issue Mercer Street issue 825,000 convertible notes with a face value of US$1.00 each.
Finally, once the dues are paid, the ASX-lister can submit its final reimbursement claim for 80% of the costs as part of a €3.2 million Maltese Government grant to build the plant.
MGC is currently completing the operational commissioning phase at the facility.
Once that’s off the to-do list, it will begin an audit to be certified as a fully compliant EU GMP manufacturing plant for all MGC Pharma’s phytomedicine products.
About MGC Pharma
MGC is developing and supplying affordable standardised phytomedicines to patients globally.
The company’s founders were key figures in the global medical cannabis industry, and the core business strategy is to develop and supply high-quality phytocannabinoid-derived medicines for the growing demand across medical markets in Europe, North America and Australasia.
MGC Pharma is targeting two widespread medical conditions – epilepsy and dementia – and has further products in the development pipeline.
Employing its ‘Nature to Medicine’ strategy, the biopharma stock is working with highly regarded institutions and academia to develop its targeted, phytocannabinoid-derived medicines prior for production at its EU-GMP certified manufacturing facility.
Recently, one of these collaborations showcased the positive impact of using specific MGC phytocannabinoid formulations to treat glioblastoma — the most aggressive, and so far therapeutically resistant, primary brain tumour.
MGC has a growing patient base in Australia, the UK, Brazil and Ireland. Beyond that, it believes it’s poised to supply the global market thanks to its global distribution footprint and commercial partner network.