MGC Pharma pulls in over half a million in Q2 revenue
Health & Biotech
Health & Biotech
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Special Report: As MGC Pharma research and development divisions ramp up operations its non-pharma business is kicking goals.
MGC Pharmaceuticals (ASX:MXC) this morning told the market that its non-pharmaceutical business units had made material revenue generation for the June quarter — nearly half a million dollars.
The company has received initial funds of €160,425 (~AU$259,000) from its purchase order of ~€438,000 (~AU$700,000) under its five-year supply agreement with private Canadian cannabis retail products company CannaGlobal and revenues from delivery of products to lifestyle and medical cannabis product manufacturer Mabsut Life.
This includes the first bulk order of cannabidiol (CBD) based cosmetic raw materials, which includes the pharma grade MGC Water Soluble CBD AquiolTM.
It is a significant step for MGC Pharma as it proceeds towards full commercialisation, following the decision to split its business into two different divisions: research and development and seed-to-pharmacy manufacturing.
The first bulk order of cosmetics raw materials has been successfully completed and will be transported for CannaGlobal to manufacture in Switzerland.
That follows a payment of €108,000 (~AU$173,000) received from Mabsut Life for completion of product orders in Q1 2019, as part of the company’s existing supply agreement.
Mabsut and MGC Pharma continue to work closely together, with Mabsut increasing sales and client retention for its CBD based vaporiser cartridge formula, marketed as PhenoPen.
MGC Pharma is developing four new CBD strains to be used for the PhenoPen product.
And that’s not all: Chinese e-commerce platform YuShop is launching a 28-day beta test of flagship MGC Nutraceuticals products conducted online and within 20 retail locations in 4 major Chinese cities. MGC and YuShop signed a marketing and distribution agreement little over a month ago.
“These sales are testament to the on-going relationship between the companies, and quality of the products we are able to provide for the growth, and diversified, revenue profile of MGC Pharma,” co-founder and managing director of MGC Pharma, Roby Zomer, said.
“This, in tandem with our increasing sales under the product supply agreement with Mabsut Life, demonstrates that our portfolio of saleable proven products is a key differentiator for MGC Pharma.
“As investors can see from the volume of announcements, we are making excellent headway and our value as high-quality product development is beginning to be recognised. Our model, team and international partnership network are performing, and I look forward to further news flow as we deliver our seed-to-pharmacy strategy,” Zomer added.