MGC Pharma makes strong debut as London Stock Exchange’s first medicinal cannabis company
Health & Biotech
Health & Biotech
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The share price of medicinal cannabis company MGC Pharmaceuticals (ASX:MXC) soared 60 per cent Tuesday on its first day of trading on the London Stock Exchange (LSE).
MGC Pharma is the first medicinal cannabis company to be admitted to the LSE after raising £6.5m ($11.6m) in a capital raising for sophisticated and institutional investors.
On its debut day of trading on the LSE under the share code MXC, the company’s share price reached 2.38 pence per share, a rise of 60 per cent from its issue price of 1.475 pence per share.
“We are proud to make history as the first medical cannabis company on this historic exchange,” chief executive and managing director, Roby Zomer, said.
The company’s IPO attracted interest from a wide range of investors including institutional funds, high net worth family offices, and professional investors.
They subscribed to 441 million shares in MGC Pharma at an offer price of 1.475 pence per share in the IPO led by London equity broker Turner Pope Investments.
Turner Pope Investments was the exclusive lead manager and book runner for the share placement that saw participation by UK fund managers including Premier Milton and Chelverton Asset Management.
“The LSE listing is a hugely significant moment for MGC Pharma, our admission to the LSE follows the successful capital raising of £6.5m which will be used to immediately commence the priority clinical research trials of our leading products, expand our distribution network into key sales markets, as well as advance the construction of our manufacturing facilities in Malta,” said Zomer.
The IPO valued the company at £33.7m, and after its first day of trading on the LSE the company’s value increased to around £40m. MGC Pharma is also listed on the ASX market.
Proceeds from the IPO will be used to advance research in the company’s phytocannabinoid medicines for epilepsy, CannEpil, and dementia and Alzheimer’s disease, CogniCann.
The company’s affordable line of cannabis-derived medicines, MP, has Pharma-grade compounds ranging from high CBD through to high THC formulations.
MGC Pharma is focused on three main areas of research – neurology, oncology, and autoimmune diseases – including its development of an anti-inflammatory medicine to treat the symptoms of COVID-19.
“I would like to thank the MGC Pharma team and the advisors for all their hard work to make this [LSE share listing] happen. We look forward to updating our new and existing shareholders as we progress this program,” added Zomer.
MGC Pharma is currently fast-tracking the start of phase three clinical trials for its anti-inflammatory medicine which can be used to treat the human immune system’s cytokine response to COVID-19.
The phase three clinical trial for the anti-inflammatory medicine involves 250 patients across three continents and is due to begin in the first half of 2021.
Phase two clinical trials for the medicine were a resounding success with a 100 per cent recovery rate among the trial’s 50 participants receiving its phyto-cannabinoid treatment for COVID-19.
MGC Pharma has a number of research partnerships with leading universities that underpin its cannabinoid medicines for the treatment of a wide range of ailments.
The company is in the process of expanding its manufacturing facility in Malta.