In order to facilitate growth and to bolster its foray into the competitive US market, MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, ASX:MXC) has received commitments for additional capital from professional and sophisticated investors for an equity investment of US$500,000 into the company via a private placement.
A significant portion of these funds will be channelled towards intensifying the company's regulatory and legal requirements.
MGC has completed a comprehensive capital restructuring, marking a pivotal moment in its development.
At the forefront of the company’s pharmaceutical efforts are its flagship treatments, CimetrA® and CannEpi;.
As it progresses, MGC is strategically aligning these key treatments for submission to the Food and Drug Administration's Investigational New Drug (FDA IND) application process - a 'pivotal' milestone scheduled for 2024.
"Significant period"
MGC CEO and managing director Roby Zomer said:“This year has been a significant period of progress.
"This is a testament to the hard work and dedication of our team and we are excited about the opportunities that these additional funds will unlock as we continue to drive innovation, expand our operations, and create long-term value for our stakeholders.
"We are grateful for the trust placed in us and look forward to a promising future of sustained growth and success as the company enters an exciting stage in its development.”
Placement summary
Under the placement, the MGC will issue 1,480,000 fully paid ordinary shares at an issue price of AU$0.50 per share.
This represents nil discount to the December 21 closing price and around 5.5% to the five-day volume weighted average price (VWAP).
The placement includes one attaching option for every two placement shares issued.
The options will be exercisable at A$1.00 each, expiring three years from the date of issue.