MGC Pharmaceuticals on high as Malta legalises medical cannabis
Specialist pot-stock, MGC Pharmaceuticals (ASX:MXC), this morning revealed that the Maltese parliament has passed final legislation for the approval of medicinal cannabis production.
This latest development is a major milestone for MXC in obtaining its formal contract for a fully licensed medicinal cannabis manufacturing facility in Malta.
MXC already has Malta Enterprise approval and a contract for its pot production facility. The company says it is now expecting to have final formal agreements signed in the coming weeks from the Malta Medicine Authority.
Malta Enterprise, the government agency responsible for attracting foreign investment, together with Malta Industrial Parks, has identified 4,000 square kilometres of land for MXC’s facility.
Planning has now kicked off for construction, and MXC anticipates approval to immediately begin construction will follow receipt of its licence and final contracts.
The production facility will house a research hub and a GMP-certified production and manufacturing facility. This will provide scope for MXC’s vision of an EU-based, fully vertically integrated, ‘seed to pharma’ medical cannabis operation.
Under this agreement, MXC will be able to produce all THC (tetrahydrocannabinol) and CBD (cannabidiol) strains of pharmaceutical-grade cannabis into key European markets. MXC will obtain GMP certification for the facility, and will comply with all Maltese medicinal cannabis licenses and permits.
With its pot-perfect climate and vantage position within the EU, Malta makes for an ideal location for MXC’s production and cultivation facility. It also presents an appealing business and cost environment compared to other EU locations, enabling cost-effective investment and direct leverage into the EU.
The EU medical cannabis market is expected to be worth $56 billion by 2020, with especially rapid growth in areas like Germany, where the market is currently worth $17.5 billion and observes a lower wholesale price of raw materials (3.5€ per gram).
How much of this market MXC is able to attract remains to be seen so investors should seek professional financial advice for further information if considering this stock for their portfolio.
Roby Zomer, MXC co-founder and managing director, said: “I am pleased to inform you that the production of cannabis for medical use has now become legal and regulated under Maltese legislation, and a plot of land within one of the Maltese industrial zones has been designated to us for our project. Once the licence by the Malta Medicines Authority is issued, we will be able to commence work on the project in Malta.”
Following this morning’s announcement, MXC is in an ascendant position, currently at 7.2 cents.
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