‘Unwavering Support’: MGC Pharma secures US$7.9 million from investors as looks to advance US FDA IND applications
Health & Biotech
Health & Biotech
MGC Pharmaceuticals has secured ~US$8 million following a capital raise to support its 12-month business plan, including its focus on US FDA IND applications of CimetrA and CannEpil.
European based Biopharma MGC Pharmaceuticals (ASX:MXC) (LSE:MXC) has received firm commitments from sophisticated and professional investors to subscribe for new shares totalling US$8 million at an issue price per share of US25.5 cents (AUD 40 cents), post-consolidation.
The share issuance will take place following the capital consolidation, which was approved by shareholders in October and is expected to be completed in the coming week.
MXC says participants will also receive one free attaching option for every two shares subscribed exercisable at US32 cents (AUD50 cents) post-consolidation, with a five-year term.
Upon the completion of the placement, a total of 31 million fully paid ordinary shares and 15.5 million options will be issued.
Investors were identified within MXC’s existing network of the board and executive management through a bookbuild process.
MXC says its involved expressions of interest from unrelated professional investors, sophisticated investors, and other investors exempt from disclosure requirements.
The company has also confirmed that no fees will be paid to any party for managing the placement.
On issue of the placement shares, the company will have 35,427,969 (subject to final rounding of the consolidation) ordinary shares in issue, each with one voting right.
Therefore, the company’s total number of ordinary shares in issue and voting rights will be 35,427,969.
MXC says funds raised will serve as the minimum required funding to support its 12-month business plan, focused on US Food and Drug Administration (FDA) IND applications of CimetrA and CannEpil.
The allocated fund usage includes:
In August MXC reported positive results from pre-clinical chronic toxicology evaluation of CimetrA in pigs supporting previous data in an important step for its planned IND submission with the US FDA.
The MXC’s CannEpil is a high-CBD, low-THC formulation, delivered by an oral mucosal solution and is part of the company’s clinical development program for patients suffering from refractory epilepsy, also known as drug-resistant epilepsy.
Managing director and CEO Roby Zomer says MXC is grateful for support of the placement.
“This underscores the unwavering support the company has from high-net-worth individuals, highlighting the trust they have in MGC’s trajectory and the impact the company are poised to make in the pharmaceutical industry,” he says.
“With this significant investment and the strong backing of our investors, MGC is well
positioned to drive innovation, accelerate growth, and achieve remarkable milestones in the coming months.”
This article was developed in collaboration with MGC Pharmaceuticals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.