MGC’s cannabis-based cosmetics join renowned brands at Cult Beauty
Health & Biotech
Health & Biotech
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Cannabis-based cosmetics from MGC Pharma will appear alongside some of the world’s most renowned beauty brands under a new deal with online cosmetics store Cult Beauty.
Under the deal, 15 cannibidiol (CBD) products from the cannabis producer’s MGC Derma subsidiary — as well as its Derma Plus skin care line — will be sold on the Cult Beauty site from February 1.
MGC Derma is a joint venture with cosmetics manufacturer, Dr. M. Burstein, operating in Europe, of which MGC Pharmaceuticals owns 51 per cent and retains management control.
With as many as 15,000 unique visits to its site every day, Cult Beauty is set to boost MGC’s range of anti-ageing and essential products, currently only available on their own online store.
They are known globally as expert curators and trend dictators, according to MGC and ‘distil the global beauty industry down to its brightest and best’.
Shares in the company (ASX:MX) spiked to 12c in early trade on the news, and settled to 10c by Monday afternoon.
Cult Beauty will run a 6-month exclusive online sales campaign on MGC Derma cosmetics and Derma Plus products, officially launching on February 1.
“This agreement, with a world-renowned beauty products e-tailer provides our Derma division with a new platform to market our growing range of CBD-based skin care products to a new and more diverse global cosmetics market,” co-founder and chief Roby Zomer told Stockhead.
“Cult Beauty individually and carefully selects each product that is marketed through its site, so we are delighted that they have recognised the efficacy of our products which work with the body’s natural system to support the skin’s response.”
Revenues from the deal will be dependent on sales of the products and results from the exclusive marketing campaign at its launch.
The agreement comes after the launch of its first Derma Plus product earlier this month, herbal cream for relief of psoriasis symptoms.
Studies from the company showed the initial product’s efficacy for the relief of a high range of highly irritated or inflamed skin conditions, with the two addition products to provide relief from acne and dermatitis.
MGC Derma is one of three divisions for the company, complementing its MGC Botanic and MGC Pharma to work across the whole cannabis supply chain.
The first harvest from MGC Botanic was completed in Czech Republic late last year, with more than 400kg of greenery collected the company.
They are now preparing the IEB growing facility in Czech Republic for the first cropping operations in H1 2018, with plan to expand its growing operations which will allow them to cultivate an area twice the size of the current operation, taking it to more than 2,000 sq m.
This special report is brought to you by MGC Pharmaceuticals.
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