First revenues for MGC Pharmaceuticals
MGC Pharmaceuticals (ASX:MXC) has pulled off its first sales deal in Europe, linked with a Czech distributor expected to bring in $500,000 of revenue for the company this year.
The company has signed a deal with Czech Medical Herbs (CMH), which has agreed to distribute a line of 15 cosmetic products in the MXC stable.
The cosmetic products contain cannabidiol and have been developed in joint venture with cosmetic manufacturer Dr M Burstein Ltd.
While the deal is centred in the Czechoslovakian market, MXC told its shareholders in a note today that it was investigating similar moves into Poland, Hungary, and the United States.
The order from CMH was for $500,000 worth, which has a potential retail value of $1.5 million.
“The sales of our first range of CBD cosmetic products marks a major milestone for MGC Pharmaceuticals,” MXC managing director Nativ Segev said.
“It signifies our first revenue generation and our ability to bring to market a range of high quality CBD based products. Through this new distribution agreement with CMH, we have been able to fast-track the sales process of our initial range of 15 CBD based cosmetic products.”
In other news, MGC Pharmaceuticals said that a dedicated retail site for its cosmetic products would go live “in the coming weeks”, adding another route to revenue for the pharmaceutical play.
Earlier this month the company unveiled its push into the world of pharmaceuticals, unveiling an R&D agreement with Israeli-based Sipnose to develop a CBD-based medicine for sufferers of epilepsy.
The retail sales will play a vital role in generating revenue for the company while it is in the lab with Sipnose, with the pharmaceutical space seen as the main game for MXC.
MXC has also sold active pharmaceutical ingredients derived from cannabis to other pharmaceutical companies.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.