MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, ASX:MXC) has raised £0.7mln (A$1.34mln) via a placing and subscription as well as a loan to bridge the company’s current working capital requirements.
The fundraising comprises a new share issue amounting to £0.65mln with institutional investors and management, plus a convertible loan of £50,000 from the company’s chief executive, Roby Zomer.
Certain members of the management team are expected to take up the new share offer.
MGC, which is developing and supplying accessible and ethically produced plant-inspired medicines, said the fundraising is intended to provide a runway of working capital, including for its short-term financing obligations, with management also exploring cost reduction measures and other potential funding options.
Earlier this week the company said it had received a downpayment of US$150,000 as part of a US$1mln order from US distributor AMC Pharma, with the remaining US$850,000 of the order to be paid upon completion of production and dispatch of the order, expected in September.