- MGC Pharma to list on the London Stock Exchange, the first medicinal cannabis company to do so
- ‘Realising our strategic ambition to be closer to our operations in Europe with greater access to UK and European investors’
- IPO to raise $11.7m from UK and European investors to progress anti-inflammatory treatment for COVID-19
MGC Pharmaceuticals (ASX:MXC) will list its shares on the London Stock Exchange (LSE) on Tuesday, when it will become the first medicinal cannabis company to be admitted to the prestigious London equities market.
The London Stock Exchange will be the primary stock market listing for the cannabinoid medicine producer, and its shares will continue to trade on the ASX market in Australia.
“We are delighted that we will be the first medicinal cannabis company to list on the LSE, something we have been working towards for over 18 months, realising our strategic ambition to be closer to our operations in Europe with greater access to UK and European investors,” co-founder and managing director, Roby Zomer, said.
The London share listing will significantly broaden MGC Pharma’s international profile, and provide access to the medicinal cannabis market for UK and European investors.
Zomer said the biopharma company was already seeing the benefits of its proposed LSE listing in the form of strong support from leading UK institutional funds and investors.
IPO set to raise $11.7m from UK and European investors
The company has obtained binding commitments from sophisticated and institutional investors for a £6.5 million ($11.7m) capital raising to coincide with its London Stock Exchange listing.
MGC Pharma is to issue 441 million shares in the placement priced at 1.475p per share (2.63c/share) representing a small premium to the company’s ASX price Monday of 2.6c/share.
The share placement has attracted a range of professional investors including family offices, professional high net worth investors of London equity broker Turner Pope Investors, and UK institutional funds.
Turner Pope is the exclusive lead manager and book runner for the share placement, which has been extremely well supported by several UK fund managers that include Premier Milton and Chelverton Asset Management.
After the share placement the biopharma company will have cash reserves of approximately $12.6m, and the capital raising will pay for phase three trials of its anti-inflammatory medicine, and phase two trials of its CannEpil medicine for epilepsy.
“The funds will primarily be used to support the company’s growth ambitions and key clinical research programs for our leading products, as we continue to expand our manufacturing capabilities, increase our product range and expand into new and existing key markets,” said Zomer.
Phase three clinical trials for anti-inflammatory medicine
MGC Pharma is currently fast-tracking the start of phase three clinical trials for its anti-inflammatory medicine which can be used to treat the human immune system’s cytokine response to the virus.
The phase three clinical trial for the anti-inflammatory medicine involves 250 patients across three continents and is due to begin in the first half of 2021.
Phase two clinical trials for the medicine were a resounding success with a 100 per cent recovery rate among the trial’s 50 participants receiving its phyto-cannabinoid treatment for COVID-19.
MGC Pharma has a number of research partnerships with leading universities that underpin its cannabinoid medicines for the treatment of a wide range of ailments.
The company is in the process of expanding its manufacturing facility in Malta.
ASX share price for MGC Pharmaceuticals (ASX:MXC)