MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, ASX:MXC) has closed its share purchase plan (SPP) with the company receiving A$834,000 in eligible applications.
The SPP announced on August 1, 2023, saw eligible shareholders subscribe for 362,608,570 new fully paid ordinary shares at A$0.0023 per share, with A$1,851,728 to be placed under the shortfall.
Applicants will receive one free attaching option exercisable at A$0.003 each on or before July 31, 2026, for every two shares subscribed for under the SPP, being 181,304,269 options.
MXC will issue up to 466,116,804 shares applied for under the shortfall offer and the issue of additional shares under the shortfall offer will be subject to shareholder approval sought at a General Meeting in September.
Use of funds
The company intends to seek additional funding under the shortfall offer.
The new cash would be used for production, raw material and laboratory costs associated with producing its cannabinoid medicines CannEpil and CogniCann, as well as to service existing debt, corporate and audit costs and ongoing working capital, the company said.
About MXC
MXC is focused on developing and supplying accessible and ethically produced plant-derived medicines, combining in-house research with innovative technologies, with the goal of finding or producing treatments for unmet medical conditions.
The company has a robust development pipeline targeting two widespread medical conditions and has further products under development and has partnered with renowned institutions and academia to optimise the development of targeted plant-derived medicines, to be produced in the company’s EU-GMP Certified manufacturing facilities.