MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, ASX:MXC) said it is looking to raise up to A$2.7 million (£1.39 million) via a share purchase plan for its Australian shareholders.
The new cash will 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.
Eligible shareholders will be able to subscribe for up to A$30,000 of new ordinary shares at a price of 0.23c apiece, a 14.56% discount to the five-day average price and at the same price as the recent UK fundraise. Eligible shareholders will be those with a registered address in Australia as at 5pm (AWST) on 31 July 2023.
For every two shares, investors will get one free SPP Option.
The issue of the options, which have an exercise price of 0.30c and an expiry date of 31 July 2026, will be subject to shareholder approval to be sought at an upcoming general meeting.
MGC said if shareholder approval is not obtained, the issue of the SPP options will not proceed.
Chief executive Roby Zomer intends to participate for his full allocation of SPP shares and options, the company added, which will also be subject to shareholder approval.
MGC reserves the right to scale back applications under the SPP.