TIDMMXC
RNS Number : 6878R
MGC Pharmaceuticals Limited
30 October 2023
MGC Pharmaceuticals Ltd.
September 2023 Quarter Activity Report and
Cash Flow Statement
30 October 2023
ASX, LSE: MXC
Key Highlights:
-- MGC received an order for US$1m from AMC Pharma ("AMC") to
produce ArtemiC(TM) (the Over the Counter ("OTC") version of
CimetrA(R)). This order comes alongside AMC's new supply agreement
to distribute to over 100 Holistic and Wellness Chiropractic
offices in California, and Florida
-- Positive results from Pre-clinical Chronic Toxicology
Evaluation of 14 days oral dose of CimetrA(R)
-- New regulation in Australia was passed making it the first
country to allow psychiatrists to prescribe psilocybin psychedelics
to treat depression or post-traumatic stress disorder (PTSD)
-- MGC was granted its first permit to import 200g of Psilocybin
Raw Mushroom material to its Slovenian research facility
-- The Company conditionally raised A$1.24 million by way of a placing and subscription
-- MGC successfully completed a Share Purchaser Plan raising A$834,000
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) September 2023.
Roby Zomer, Managing Director and CEO of MGC Pharma, commented:
"We are pleased to report on a productive September quarter for the
business. MGC has received an order for US$1m from AMC Pharma to
produce ArtemiC(TM) . This order comes alongside AMC's new supply
agreement to distribute to over 100 Holistic and Wellness
Chiropractic offices in California, and Florida. The Company has
also been granted its first import permit to its Slovenian research
facility."
Key Company Activities
US$1M Order of ArtemiC(TM) Placed by AMC
MGC received an order for US$1m from AMC Pharma to produce
ArtemiC(TM) (the Over the Counter ("OTC") version of CimetrA(R)).
This order came alongside AMC's own separate supply agreement to
distribute to over 100 Holistic and Wellness Chiropractic offices
in California, and Florida. This represents the start of a
substantial ramp up of sales for ArtemiC(TM) with increasing
distribution across the US. To date, the Company has received total
orders of over 100,000 units of ArtemiC(TM) By AMC.
Positive Pre-clinical Trial Results for CimetrA(R)
On 14 August 2023 MGC announced positive pre-clinical trial
results from the completed Pre-clinical Chronic Toxicology
Evaluation of 14 days oral dose of CimetrA(R).
The recently completed study was undertaken on 32 domestic
swine, that received a study treatment (three dosages groups of
CimetrA(R) and Placebo) for 14 days. During this period, the
clinical parameters were recorded, blood (hematology, coagulation
and chemistry) and urine tests were collected and sent to the
histopathological evaluation.
The study demonstrated that following the full chronic safety
and toxicology analysis of CimetrA(R) in large animals - the drug
was found to be safe. The histopathological analysis of the full
organs spectrum demonstrated all tissues of all animals were normal
and unaffected. It was concluded that the test article at the
dosage administered did not induce toxicological changes. No
changes in the blood and urine samples were reported.
The study was performed under animal EC approval in the GLP
certified Lab Science in Action, Ness Ziona, Israel, and is an
important step in the Investigational New Drug ("IND") submission
preparation for the US Food and Drug Administration ("FDA"). The
study was designed and managed according to industry guidelines and
the IND submission is planned for Q1 2024.
MGC Welcomes Australia's Reclassification of Psychedelic
Compounds
During the quarter, MGC welcomed new regulation in Australia to
prescribe psychedelics to patients with depression or
post-traumatic stress disorder (PTSD). Effective from 1st July
2023, MDMA and Psilocybin were reclassified as medicines for some
complex mental health conditions. Authorities in Australia placed
the two drugs on the list of approved medicines by the Therapeutic
Goods Administration, allowing patients suffering from depression
and PTSD to access them under the care of authorised Australian
physicians.
Following the latest regulatory advancements, MGC is able to
position itself as a key player in pioneering psychedelic research
and development and as a result, the Company can now offer
accurate, pharmaceutical-grade products. MGC will look to expand
sales in Australia through the Company's existing channels to
provide Psilocybin to those in need of treatment.
MGC Pharma Received Permission to Import Psilocybin
On 31 July 2023 MGC announced they had been granted its first
import permit of Psilocybin Raw Mushroom material to its Slovenian
research facility from Psyence Group Inc's (Psyence) Southern
Africa production site as part of the raw material transfer
agreement (transfer agreement) signed between the two
companies.
Under the transfer agreement, MGC Pharma will perform an
analysis on the materials with a view to assist Psyence in the
development of new psilocybin products to take to market, through
its GMP-certified research facility in Slovenia that was recently
approved for psilocybin compounding.
September Quarter Sales Update
September Quarter Sales Update MGC Pharma revenue in the June
quarter were in line with the quarterly average sales.
Activities Post Quarter End
The Company held a general meeting on 25 October 2023. The
subsequent approval of all resolutions has allowed MGC to conduct a
consolidation of the Company's capital on a 1,000:1 basis as well
as provide approval for a capital raise to give the company
sufficient funding for the following 12 months. Additionally, the
Company will hold its annual general meeting on 30 November
2023.
Corporate and Commercial News
Funding and Cashflow Reporting
During the quarter, the Company conditionally raised GBP0.65
million (A$1.24 million) (before expenses) by way of a placing and
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 launched a Share Purchase Plan to its
Australian shareholders to raise up to $2,685,728. The Company
received applications from eligible shareholders totalling
A$834,000 to subscribe for 362,608,570 new fully paid ordinary
shares in the capital of the Company at A$0.0023 (0.23 cents) per
Share, with A$1,851,728 to be placed under a Shortfall Offer.
Subject to shareholder approval to be sought at the Company's
upcoming general meeting on 5 September 2023, applicants will
receive one free attaching option exercisable at A$0.003 (0.3
cents) each on or before 31 July 2026 (Options) for every two (2)
Shares subscribed for under the SPP, being 181,304,269 Options.
At the end of the September, the Company has A$417k of cash on
hand.
Accompanying this Activity Report is a Cash Flow Report for the
Quarter ending 30 September 2023.
In accordance with ASX Listing Rule 4.7C.3 the Company advises
that during the September 2023 quarter, payments to related parties
totalled A$129k, 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$285k cash outflows
associated with inventory production, A$1.015 million for
administration costs (including product registration costs), and
cash inflows of A$2.5m including funding received from the
Placement conducted in July and the Share Purchase Plan in
August.
Personnel Changes
On 28 July 2023 Mr Arron Canicais resigned as Joint Company
Secretary, with Mr Rowan Harland remaining as the sole Company
Secretary. The Company thanked Mr Canicais for his contributions to
the Company and wished him the very best for the next stage of his
career.
Change of Registry Address
In accordance with ASX Listing Rule 3.15.1 and effect from
Monday, 18 September 2023, the Perth office of Computershare
Investor Services Pty Limited moved to Level 17, 221 St Georges
Terrace, Perth WA 6000.
Telephone numbers and postal address remained unchanged.
Lodgement of documentation by member organisations, securityholders
and other parties must be made at the new address.
-S-
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 IR/PR Advisers UK Brokers
IFC Advisory Oberon Capital
Graham Herring / Tim Metcalfe Aimee McCusker / Adam Pollock
/ Zach Cohen +44 203 179 5300
+44 203 934 6630 aimeemccusker@oberoninvestments.com
mgcpharma@investor-focus.co.uk adampollock@oberoninvestments.com
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 medicines, combining in-house
research with innovative technologies, with the goal of finding or
producing treatments 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 innovative medicines.
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 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 September 2023
----------------------------------
Consolidated statement of cash Current quarter Year to date
flows $A'000 (3 months)
$A'000
1. Cash flows from operating
activities
------------------------------------------- ----------------------------- ---------------
1.1 Receipts from customers 511 511
1.2 Payments for
(a) research and development (97) (97)
(b) product manufacturing -
and operating costs
i) cost of sales / inventory (285) (285)
ii) operating costs - -
(c) advertising and marketing (118) (118)
(d) leased assets - -
(e) staff costs (1,375) (1,375)
(f) administration and corporate
costs (including product registrations) (1,015) (1,015)
1.3 Dividends received (see note - -
3)
1.4 Interest received - -
1.5 Interest and other costs of - -
finance paid
1.6 Income taxes paid - -
Government grants and tax
1.7 incentives 2 2
1.8 Other (GST/VAT refund) - -
------------------------------------------- ----------------------------- ---------------
Net cash from / (used in)
1.9 operating activities (2,377) (2,377)
------------------------------------------- ----------------------------- ---------------
2. Cash flows from investing
activities
----------------------------------------- ----------------------------- ---------------
2.1 Payments to acquire: - -
(a) entities - -
(b) businesses - -
(c) property, plant and equipment (14) (14)
(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 (14) (14)
----------------------------------------- ----------------------------- ---------------
3. Cash flows from financing
activities
----------------------------------------- ----------------------------- ---------------
Proceeds from issues of equity
securities (excluding convertible
3.1 debt securities) 1,986 1,986
3.2 Proceeds from issue of convertible - -
debt securities
3.3 Proceeds from exercise of - -
options
Transaction costs related
to issues of equity securities
3.4 or convertible debt securities (210) (210)
3.5 Proceeds from borrowings 777 777
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 2,553 2,553
----------------------------------------- ----------------------------- ---------------
4. Net increase / (decrease) Current quarter Year to date
in cash and cash equivalents (3 months)
for the period
$A'000 $A'000
------------------------------- ----------------- --------------
Cash and cash equivalents
4.1 at beginning of period 259 259
Net cash from / (used in)
operating activities (item
4.2 1.9 above) (2,377) (2,377)
Net cash from / (used in)
investing activities (item
4.3 2.6 above) (14) (14)
Net cash from / (used in)
financing activities (item
4.4 3.10 above) 2,553 2,553
Effect of movement in exchange
4.5 rates on cash held (4) (4)
------------------------------- ----------------- --------------
Cash and cash equivalents
4.6 at end of quarter 417 417
------------------------------- ----------------- --------------
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 391 233
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) 417 259
----------------------------------- ---------------- -----------------
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 1 129
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 and to related party Graft
Polymer.
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) (2,377)
Cash and cash equivalents at quarter
8.2 end (Item 4.6) 417
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) 8,069
------------------------------------------------------- ----------
Estimated quarters of funding available
8.5 (Item 8.4 divided by Item 8.1) 3.4
------------------------------------------------------- ----------
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 October 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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