MGC Pharma jumps on the China export train, shares rise 38pc
Health & Biotech
Health & Biotech
Special Report: Biopharma company MGC Pharma will sell its CBD and hemp-based Nutraceuticals products in China thanks to a tie-up with a Chinese e-commerce platform.
The company (ASX:MXC) has signed a marketing and distribution agreement with Chinese cross-border lifestyle and e-commerce marketplace YuShop Global, which sent shares up 38 per cent on Wednesday, to six month highs of 5.8c.
The deal will see MGC Pharmaceuticals join the wealth of small cap ASX companies involved in China, across industries ranging from infant formula to wine to clothes and everything in between.
MGC Pharma will gain access to over 1,500 retail channel partner outlets as well as online storefronts, capturing a market of over 350 million middle-class Chinese vitamin and supplements consumers.
Under the terms of the deal, YuShop will sell MGC Pharma’s Nutraceutical products including CBD Hemp protein powder, BCAA CBD capsules, CBD Water Soluble Solution and CBD herbal V-Pen to consumers via its ecommerce platform and retail channel partners.
The company will receive revenue from product sales immediately after transaction completion, and there are no specified minimum contract amounts or volumes.
The MGC Nutraceuticals range evolved from the from the company’s pharmaceutical grade product development pipeline, as a way of capturing market share in non-pharmaceutical products lines.
Promoting inner health and wellbeing, it includes multiple premium products, comprising of supplements and food grade products with natural flavors such as vanilla, toffee and coconut milk.
They are rich in plant-based proteins, high-quality hemp CBD and a wide spectrum of vital vitamins and minerals to fuel and recharge your body’s systems, with essential branched-chain amino acids to build your body’s vital proteins.
Nathan Hasley, YuShop’s CEO said the deal would lead a “technology-backed CBD product demand surge in China.”
Roby Zomer, MGC Pharma co-founder and managing director, described the deal as pivotal to his company’s commercialisation strategy.
“We are focused on a growth strategy of becoming a leading global provider of phytocannabanoid health products, including our Nutraceutical range, on top of our leading medicinal products,” he said.