MGC Pharma teams up with Canadian cannabis industry pioneer Lorne Gertner
Health & Biotech
Health & Biotech
Link copied to
Special report: It’s full steam ahead for medical cannabis developer MGC Pharma as it firms up its recent deal with Canadian cannabis investment company Cannaglobal.
The company (ASX:MXC) told investors today it will this week receive the first instalment in CannaGlobal’s initial C$1 million order under its new 5-year exclusive CBD and cosmetic materials supply agreement.
MGC Pharma is selling its MGC Derma business to CannaGlobal in exchange for C$12.5m in equity, making MGC Derma a cornerstone investment in CannaGlobal’s portfolio of brands.
MGC Derma develops a range of cannabinoid-based skincare products and has recently inked deals to sell its products through global retailer Harvey Nichols and online retailer Cult Beauty.
MGC Pharma says the advanced instalment is a demonstration of goodwill in the new partnership, including the relationship with CannaGlobal founder and cannabis industry pioneer Lorne Gertner.
Mr. Gertner is high-profile Canadian entrepreneur and one of the world’s foremost investors in the cannabis industry.
He is a co-founder and former chairman of PharmaCan Capital Corporation (now Cronos), Canada’s first publicly traded investment company in the medical marijuana sector.
Mr Gertner was also a co-founder and Director of Cannasat Pharmaceuticals Inc. (CYNA), the first medical marijuana company to be listed on the Toronto stock exchange.
That experience will serve him well as CannaGlobal advances toward a listing on a Canadian Securities Exchange.
The future of cannabis-based skincare
The legalisation of cannabis around the world has played a huge role in growing the budding industry on a global scale and on the ASX.
Spending on legal cannabis worldwide is expected to hit $57 billion by 2027, while Australia’s legal cannabis market is forecast to grow from $52 million in 2018 to $1.2 billion by 2027, making it the fifth largest market in the world, according to
Arcview Market Research and its research partner BDS Analytics.
While many companies are focused on the medicinal applications of cannabis, Mr Gertner sees skincare are “one of the most compelling opportunities in the cannabis space.”
MGC Pharma is one of several industry players transforming cannabis into a range of products.
Co-founder and managing director Roby Zomer says the company is well-positioned to meet the growing demand for cannabis-based lifestyle products.
“We have partnered with one of the world’s most prominent industry experts and visionaries who will combine Derma with a number of leading cannabis brands to tap into the strong demand for disruptive cannabis wellness and lifestyle products.”
“Under CannaGlobal and MGC Derma’s new CEO Hugh Winters, we expect strong growth in Derma sales globally will drive repeat orders under this exclusive supply agreement.
MGC Pharma is a Stockhead advertiser.