TIDMMXC
RNS Number : 5469H
MGC Pharmaceuticals Limited
28 July 2023
June 2023 Quarter Activity Report and
Cash Flow Statement
28 July 2023
ASX Code: MXC
LSE Code: MXC
Key Highlights:
-- CannEpil(R), MGC Pharma's Investigational Medicinal Product
("IMP") is now available in the United Kingdom by Named Patient
Request to be prescribed by doctors on The General Medical Council
("GMC") specialist register across the UK.
-- The first UK patient has received CannEpil(R) through the 'I
AM Billy Foundation', supporting the RESCAS study.
-- MGC's Maltese fully automated, large scale pharmaceutical
production facility has now been granted EU-Good Manufacturing
Practice (GMP) certification.
-- MGC Pharma has received permission from the Slovenian
Ministry of Health to undergo research with Psilocybin.
-- UK led fundraising closed on 13 April 2023, raising a total
of GBP1,204,525 (A$2,204,281) (before expenses).
MGC Pharmaceuticals Ltd (MGC Pharma, MGC or the Company) a
European based pharmaceutical company specialising in the
production and development of plant derived medicines, is pleased
to provide its Quarterly Activity Report for the three months
ending 30(th) June 2023.
Roby Zomer, Managing Director and CEO of MGC Pharma, commented:
"We are delighted to report on a very productive June quarter for
the business. Cannepil is now available in the UK and can be
prescribed by doctors on the GMC and it has been received by the
first UK patient through the 'I AM Billy Foundation'. The Company
has also received permission from the Slovenian Ministry of Health
to undergo research with Psilocybin which reinforces our commitment
to growth and innovation as we look to expand our presence in the
growing industry of Psychedelics."
Key Company Activities
CannEpil(R) Approved to Specialist Register for GMC Prescription
in the UK
CannEpil(R) , MGC Pharma's Investigational Medicinal Product
("IMP") is now available in the United Kingdom by Named Patient
Request to be prescribed by doctors on The General Medical Council
("GMC") specialist register across the UK. The products will be
supplied in order to meet the needs of individual patients where an
unmet medical need exists. The availability via Named Patient
Request follows the announcement that MGC Pharma is providing
CannEpil(R) to an observational trial supported by the 'I am Billy
Foundation'.
As announced on 31 May 2023 CannEpil(R), MGC Pharma's
Investigational Medicinal Product ("IMP") has now been successfully
imported and received by its first patients in the United Kingdom.
The first UK patient has received CannEpil(R) through the 'I AM
Billy Foundation', supporting the RESCAS study. Additionally, the
Company has delivered CannEpil(R) to its first patient in the UK
via the Named Patient Request programme.
CannEpil(R) is in the process of a clinical development
programme for patients suffering from refractory (or
drug-resistant) epilepsy.
Malta Production Facility- EU GMP Approval Granted
MGC's Maltese fully automated, large scale pharmaceutical
production facility has now been granted EU-Good Manufacturing
Practice (GMP) certification.
A formal grant of GMP accreditation, an internationally
recognised standard, guarantees high quality, standardised
production protocols and further enables quality control of MGC
proprietary products within key markets globally. The facility was
built with the support of an 80% EU cash funded grant from Malta
Enterprises, with the facility commissioned during 2022.
The facility will be able to produce all MGC medicines and
supplements and will be able to provide third party production
services for other pharmaceutical companies - adding a new
potential revenue stream for MGC Pharma. MGC's in house production
capacity in Malta is now over 20,000 units a day of finished dose
forms, which can support all future needs of CannEpil(R) and
CimetrA(TM) once marketing authorisation is obtained in the USA and
Europe.
Slovenian Ministry of Health approval for research with
Psilocybin
MGC Pharma has received permission from the Slovenian Ministry
of Health to undergo scientific research development on the
psychedelic compound Psilocybin. The permission granted covers the
development of analytical methods, research of physical-chemical
properties of Psilocybin and development of pharmaceutical forms
that would be suitable for administration.
MGC Pharma is one of the first companies to obtain permission to
undertake pharmaceutical research on Psilocybin and the first in
Slovenia. The company plans to work with other pharmaceutical
businesses to collaborate and provide research capabilities for
understanding the properties of Psilocybin. This approval will
allow MGC to take the Psychedelic industry one step closer to the
pharmaceutical industry by helping to develop and research new
medicines based on Psilocybin, and for MGC to provide such services
to the growing industry of Psychedelics .
June Quarter Sales Update
June Quarter Sales Update MGC Pharma revenue in the June quarter
were in line with the quarterly average sales.
Funding and Cash Flow Reporting
As announced on 11 April 2023, the Company successfully raised
GBP1.2 million (A$2.7m) (before expenses) by way of a conditional
placing of 476,132,620 new ordinary shares of no-par value in the
capital of the Company at a price of 0.44 pence (0.8 cents) per
Placing Share, and 238,066,311 Fundraise Options. The Placing was
supported by a mix of new and existing institutional and high net
worth shareholder in both the UK and Australia, including Premier
Miton and Cantheon Capital, in addition to the supplementary Broker
Option raise.
At the end of the June, the Company has A$259k of cash on hand,
and A$7.7m (US$5.2m) of funding capacity available under the Mercer
US$10m Convertible Securities facility.
Accompanying this Activity Report is a Cash Flow Report for the
Quarter ending 30 June 2023.
In accordance with ASX Listing Rule 4.7C.3 the Company advises
that during the June 2023 quarter, payments to related parties
totalled A$196k, which consisted of fees paid to executive and
non-executive directors of the Company.
As detailed in the accompanying Appendix 4C (Quarterly Cashflow
Report), cashflows during the quarter included A$404k cash outflows
associated with inventory production, A$921k for administration
costs (including product registration costs), and cash inflows of
A$3.4m including funding received from the Placement conducted in
April.
Activities Post Quarter End
Post quarter end, the Company conditionally raised GBP0.65
million (A$1.24 million) (before expenses) by way of a placing
(Placing) and subscription (Subscription) of 541,666,667 new
ordinary shares of no-par value (Ordinary Shares) in the capital of
the Company (Fundraising Shares) at a price of 0.12 pence (0.23
cents) per Fundraising Share ("Issue Price"). The Company also
agreed to issue one free attaching option exercisable at 0.12 pence
(0.23 cents) with an expiry date of 14 July 2026 for every one
Fundraising Share subscribed for under the Placement and
Subscription.
Additionally, the Company has raised GBP50,000 (A$95,000) from
Roby Zomer, CEO and Managing Director of the Company, pursuant to a
convertible loan agreement (CLA). The CLA allows Mr Zomer to
provide an investment without requiring advanced shareholder
approval, which would otherwise be required for a direct
subscription. Additionally, certain members of the Company's
management team are subscribing for Ordinary Shares directly with
the Company pursuant to subscription letters.
Corporate and Commercial News
Appointment of Joint Broker
As stated on 30 May 2023, Oberon Capital has been appointed as a
joint broker in the UK with immediate effect alongside Peterhouse
Capital.
Appointment of Public and Investor Relations Advisor
IFC Advisory has been appointed as the Company's new UK-based
Public and Investor Relations advisers. The IFC team have in-depth
experience in the pharmaceutical sector and will support MGC in its
stated forward trajectory.
Personnel changes
On 1 June 2023 Mr Brett Mitchell and Mr Nativ Segev, stepped
down from the Board, reflecting the changing direction of the
Company as MGC Pharmaceuticals moves away from the medicinal
cannabis sector toward a more pharma-focused business strategy.
Dr Stephen Parker, currently Non-Executive Director of the
Company, has replaced Mr Mitchell as interim Non-Executive Chair.
The Company will appoint a new Australian non-executive director
ensuring compliance with section 201A(2) of the Corporations Act
and the ASX Listing Rules.
MGC Pharma has also appointed Mr. Layton Mills as a
Non-Executive Director of the Company. Mr. Mills is an experienced
life-sciences executive, having worked in the biotechnology and
life sciences industries for over 15 years, developing significant
experience across human and animal health in pharmaceutical and
consumer healthcare.
Change of Australian Registered Office and Principal Place of
Business
The Company's Australian registered office and principal place
of business have changed to the following:
Registered Office: Postal Address: Telephone: Fax :
Suite 1, 295 Rokeby Suite 1, 295 Rokeby +61 8 6555 2950 +61 8 6166 0261
Road Road
Subiaco WA 6008 Subiaco WA 6008
Authorised for release by the board of directors, for further
information please contact:
MGC Pharmaceuticals Ltd MGC Pharmaceuticals Ltd
Roby Zomer Rowan Harland
CEO & Managing Director Company Secretary
+61 8 6555 2950 +61 8 6555 2950
info@mgcpharma.co.uk info@mgcpharma.co.uk
UK Brokers UK Brokers
Peterhouse Capital Oberon Capital
Charles Goodfellow / Lucy Williams Aimee McCusker / Adam Pollock
/ Duncan Vasey +44 203 179 5300
+44 207 469 0930 aimeemccusker@oberoninvestments.com
cg@peterhousecap.com / lw@peterhousecap.com adampollock@oberoninvestments.com
UK IR/PR Advisers
IFC Advisory
Graham Herring / Tim Metcalfe
/ Zach Cohen
+44 203 934 6630
mgcpharma@investor-focus.co.uk
About MGC Pharma
MGC Pharmaceuticals Ltd (LSE: MXC, ASX: MXC) is a European based
pharmaceutical company, focused on developing and supplying
accessible and ethically produced plant derived medicines,
combining in-house research with innovative technologies, with the
goal of finding or producing treatments to for unmet medical
conditions.
The Company's founders and executives are key figures in the
global pharmaceuticals industry and the core business strategy is
to develop and supply high quality plant inspired medicines for the
growing demand in the medical markets in Europe, North America and
Australasia.
MGC Pharma has a robust development pipeline targeting two
widespread medical conditions and has further products under
development.
MGC Pharma has partnered with renowned institutions and academia
to optimise the development of targeted plant inspired medicines,
to be produced in the Company's EU-GMP Certified manufacturing
facilities.
MGC Pharma has a growing patient base in Australia, the UK,
Brazil and Ireland and has a global distribution footprint via an
extensive network of commercial partners meaning that it is poised
to supply the global market.
Follow us through our social media channels:
LinkedIn: MGC Pharmaceuticals Ltd.
Twitter: @MGC_Pharma
Facebook: @mgcpharmaceuticals
Instagram: @mgc_pharma
Appendix 4C
Quarterly cash flow report for entities
subject to Listing Rule 4.7B
Name of entity
------------------------------------------------------
MGC PHARMACEUTICALS LTD
ABN Quarter ended ("current quarter")
---------------- ----------------------------------
30 116 800 269 30 June 2023
----------------------------------
Consolidated statement of cash Current quarter Year to date
flows $A'000 (12 months)
$A'000
Cash flows from operating
1. activities 691
1.1 Receipts from customers 4,079
1.2 Payments for (213) (1,777)
(a) research and development
(b) product manufacturing
and operating costs
i) cost of sales / inventory (404) (2,502)
ii) operating costs - (2)
(c) advertising and marketing (191) (701)
(d) leased assets - -
(e) staff costs (1,627) (5,989)
(f) administration and corporate
costs (including product registrations) (921) (4,913)
1.3 Dividends received (see note - -
3)
1.4 Interest received - 44
Interest and other costs of
1.5 finance paid (2) (2)
1.6 Income taxes paid - (2)
Government grants and tax
1.7 incentives 2 1,162
1.8 Other (GST/VAT refund) - 619
------------------------------------------- ----------------- ----------------
Net cash from / (used in)
1.9 operating activities (2,664) (9,984)
------------------------------------------- ----------------- ----------------
2. Cash flows from investing Current quarter Year to date
activities (12 months)
$A'000 $A'000
----------------------------------------- ----------------- ----------------
2.1 Payments to acquire:
(a) entities - -
(b) businesses - -
----------------------------------------- ----------------- ----------------
(c) property, plant and equipment (16) (739)
(d) investments - -
(e) intellectual property - -
(f) other non-current assets - -
2.2 Proceeds from disposal of:
(a) entities - -
(b) businesses - -
(c) property, plant and equipment - -
(d) investments - -
(e) intellectual property - -
(f) other non-current assets - -
2.3 Cash flows from loans to - -
other entities
2.4 Dividends received (see note - -
3)
2.5 Other (cash acquired through - -
assets acquisition)
----------------------------------------- ----------------- ----------------
Net cash from / (used in)
2.6 investing activities (16) (739)
----------------------------------------- ----------------- ----------------
3. Cash flows from financing Current quarter Year to date
activities (12 months)
$A'000 $A'000
----------------------------------------- ----------------- ----------------
Proceeds from issues of equity
securities (excluding convertible
3.1 debt securities) 2,698 2,698
Proceeds from issue of convertible
3.2 debt securities - 6,948
3.3 Proceeds from exercise of - -
options
Transaction costs related
to issues of equity securities
3.4 or convertible debt securities (81) (81)
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related - -
to loans and borrowings
3.8 Dividends paid - -
3.9 Other (loan entity which - -
where control was gained
after quarter-end)
----------------------------------------- ----------------- ----------------
Net cash from / (used in)
3.10 financing activities 2,617 9,565
----------------------------------------- ----------------- ----------------
4. Net increase / (decrease) Current quarter Year to date
in cash and cash equivalents (12 months)
for the period
$A'000 $A'000
------------------------------- ----------------- --------------
Cash and cash equivalents
4.1 at beginning of period 315 1,886
Net cash from / (used in)
operating activities (item
4.2 1.9 above) (2,664) (9,984)
Net cash from / (used in)
investing activities (item
4.3 2.6 above) (16) (738)
Net cash from / (used in)
financing activities (item
4.4 3.10 above) 2,617 9,565
Effect of movement in exchange
4.5 rates on cash held 6 (470)
------------------------------- ----------------- --------------
Cash and cash equivalents
4.6 at end of quarter 259 259
------------------------------- ----------------- --------------
5. Reconciliation of cash and Current quarter Previous quarter
cash equivalents $A'000 $A'000
at the end of the quarter
(as shown in the consolidated
statement of cash flows) to
the related items in the accounts
5.1 Bank balances 233 289
5.2 Call deposits 26 26
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
----------------------------------- ---------------- -----------------
Cash and cash equivalents
at end of quarter (should
5.5 equal item 4.6 above) 259 315
----------------------------------- ---------------- -----------------
6. Payments to related parties of the entity Current quarter
and their associates $A'000
Aggregate amount of payments to related
parties and their associates included in
6.1 item 1 196
6.2 Aggregate amount of payments to related -
parties and their associates included in
item 2
------------------------------------------- ----------------
Note: if any amounts are shown in items 6.1 or 6.2, your
quarterly activity report must include a description of,
and an explanation for, such payments.
-------------------------------------------------------------------
The payments in 6.1 are payments to directors of the company for
their service during the quarter.
7. Financing facilities available Total facility Amount drawn
Note: the term "facility' amount at quarter at quarter end
includes all forms of financing end $A'000
arrangements available to $A'000
the entity.
Add notes as necessary for
an understanding of the sources
of finance available to the
entity.
7.1 Loan facilities - -
7.2 Credit standby arrangements - -
7.3 Other (please specify) 14,600 6,948
7.4 Total financing facilities 14,600 6,948
--------------------------------- ------------------- ----------------
Unused financing facilities
available at quarter
7.5 end - 7,652
--------------------------------- ------------------- ----------------
7.6 Include in the box below a description of each facility
above, including the lender, interest rate, maturity date
and whether it is secured or unsecured. If any additional
financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing
details of those facilities as well.
------------------------------------------------------------------------
$14.6M Convertible note facility with Mercer Street Opportunity
Fund LLC. Refer to ASX announcement on 29 July 2022 for further
information.
8. Estimated cash available for future $A'000
operating activities
Net cash from / (used in) operating
8.1 activities (Item 1.9) (2,664)
Cash and cash equivalents at quarter
8.2 end (Item 4.6) 259
Unused finance facilities available
8.3 at quarter end (Item 7.5) 7,652
Total available funding (Item 8.2
8.4 + Item 8.3) 7,910
------------------------------------------------------- ----------
Estimated quarters of funding available
8.5 (Item 8.4 divided by Item 8.1) 3.0
------------------------------------------------------- ----------
Note: if the entity has reported positive net operating
cash flows in item 1.9, answer item 8.5 as "N/A". Otherwise,
a figure for the estimated quarters of funding available
must be included in item 8.5.
8.6 If Item 8.5 is less than 2 quarters, please provide answers
to the following questions:
1. Does the entity expect that it will continue to have
the current level of net operating cash flows for the
time being and, if not, why not?
-------------------------------------------------------------------
Answer: N/A
-------------------------------------------------------------------
2. Has the entity taken any steps, or does it propose
to take any steps, to raise further cash to fund its operations
and, if so, what are those steps and how likely does it
believe that they will be successful?
-------------------------------------------------------------------
Answer: N/A
-------------------------------------------------------------------
3. Does the entity expect to be able to continue its operations
and to meet its business objectives and, if so, on what
basis?
-------------------------------------------------------------------
Answer: N/A
-------------------------------------------------------------------
Note: where item 8.5 is less than 2 quarters, all of
questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
27 July 2023
Date:
...................................................................................
[lodge electronically without signature]
Authorised by:
...................................................................................
Roby Zomer - Managing Director
Notes
1. This quarterly cash flow report and the accompanying activity
report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and
the effect this has had on its cash position. An entity that wishes
to disclose additional information over and above the minimum
required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions
in, and provisions of, AASB 107: Statement of Cash Flows apply to
this report. If this quarterly cash flow report has been prepared
in accordance with other accounting standards agreed by ASX
pursuant to Listing Rule 19.11A, the corresponding equivalent
standard applies to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities,
depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market
by your board of directors, you can insert here: "By the board". If
it has been authorised for release to the market by a committee of
your board of directors, you can insert here: "By the [name of
board committee - eg Audit and Risk Committee]". If it has been
authorised for release to the market by a disclosure committee, you
can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market
by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance
Council's Corporate Governance Principles and Recommendations, the
board should have received a declaration from its CEO and CFO that,
in their opinion, the financial records of the entity have been
properly maintained, that this report complies with the appropriate
accounting standards and gives a true and fair view of the cash
flows of the entity, and that their opinion has been formed on the
basis of a sound system of risk management and internal control
which is operating effectively.
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END
UPDPPUACMUPWUQR
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