The company has been a strenuous hold for shareholders over the past year, jumping from lows of $0.027 in January to all-time highs less than a month later of $0.125, falling back down to $0.039 over the next seven months. However, recent news of the $24 million deal saw one of its biggest one-day increases ever recorded, jumping more than 43% in a day.
The deal with AMC Holdings (AMC) – not to be confused with the entertainment giant – will see a minimum of $24 million in orders over three years of three of MGC’s products – CannEpil, CogniCann and CimetrA.
AMC will use the products in clinical trials as well as help ‘seek US regulatory approvals for all products which they intend to distribute’.
Co-founder and Managing Director of MGC Pharma Roby Zomer believes this is a turning point for the company, allowing it to access one of the largest healthcare markets in the world.
This is an important milestone agreement for MGC Pharma, as it provides MGC access to the largest healthcare market in the world. This Agreement provides MGC Pharma with a pipeline for strong revenue streams over the next three years, with the possibility of larger revenues to follow, and the opportunity to be at the forefront of phytomedicines in the USA.
The binding agreement will see orders staggered across three years:
- Year 1: US$3,000,000
- Year 2: US$6,000,000
- Year 3: US$15,000,000
Should AMC failed to adhere to the minimum order requirements, MGC may terminate the contract.
You can see the full ASX announcement here.
MGC Pharma (ASX: MXC) jumps 43% on the back of a $24 million supply deal with US company
