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- MGC Pharmaceuticals (MXC) has signed an acquisition agreement to sell its MGC Nutraceuticals subsidiary to U.S. health and wellness company Onassis Holdings
- As a result of this sale, MGC Pharma will receive US$6 million (around A$8.75 million) worth of Onassis shares and an exclusive supply and production agreement
- MGC Pharma will now be able to focus on its primary business of becoming a world-leading biopharma company
- Additionally, Onassis is now looking to raise US$8.5 million (roughly A$12.4 million) with US$2.5 million (approximately A$3.6 million) to go towards commercial rollout, and expansion and growth
- This agreement will remain in place for as long as MGC Pharma and its subsidiaries continue operating production facilities in the EU
- MGC Pharma is up a slight 4.35 per cent and shares are currently trading for 2.4 cents each
MGC Pharmaceuticals (MXC) has signed an acquisition agreement to sell its MGC Nutraceuticals subsidiary to Onassis Holdings.
Onassis is a U.S.-based company that focuses on the wellness, CBD and hemp oil, and cosmetics industries.
As a result of this sale, MGC Pharma will receive US$6 million (about A$8.75 million) worth of Onassis shares.
The company will also receive an exclusive supply agreement for the sale of its CBD, raw materials and intellectual property to Onassis for future productions and manufacturing.
This transaction is significant as it allows MGC Pharma to focus on its primary business of becoming a world-leading biopharma company focused on the development and production of phytocannabinoid medications.
It will also allow Onassis to become a diversified wellness company in the U.S., and it will now look to raise US$8.5 million (around A$12.4 million) with US$2.5 million (roughly A$3.6 million) to go towards commercial rollout, and expansion and growth.
“This is a milestone transaction for MXC, with the potential to realise significant value for our company and shareholders,” Co-Founder and Managing Director Roby Zomer commented.
“We are very pleased MGC Nutraceuticals will have the opportunity to further develop and grow under the expertise of the Onassis team,” he said.
“MXC will not only continue to benefit from the growth of nutraceuticals, but importantly, will be able to further dedicate the teams focus and resources on developing and commercialising our phytocannabinoid derived products for growing global markets,” he added.
This agreement will remain in place for as long as MGC Pharma and its subsidiaries continue operating production facilities in the EU.
MGC Pharma is up a slight 4.35 per cent and shares are trading for 2.4 cents each at 12:55 pm AEST.
