TIDMMXC
RNS Number : 0549S
MGC Pharmaceuticals Limited
01 November 2023
MGC Pharmaceuticals Ltd.
MGC Secures US$7.9 Million In Firm Commitments for New Fund
Raising
1 November 2023
ASX, LSE: MXC
MGC Pharmaceuticals Ltd (MGC Pharma, MGC or the Company) a
European based pharmaceutical company specialising in the
production and development of innovative medicines for unmet
medical needs, is pleased to announce that following shareholder
approval for a new share placement secured at the Company's General
Meeting on 25(th) October 2023 (Placement), the Company confirms
that it has received binding commitments from sophisticated and
professional investors (Investors) to subscribe for US$7.9 million
of new shares under the Placement, at an issue price of US$0.255
(A$0.40)[1] per share (on a post-Consolidation basis).
The issue of shares under the Placement is anticipated to occur
in the next week, post completion of the 1:1000 consolidation of
capital, as approved by shareholders at the same General Meeting on
25(th) October (Consolidation). Participants in the Placement will
also receive one free attaching option for every two shares
subscribed for and issued. The options will be exercisable at
US$0.32 (A$0.50) (on a post-Consolidation basis), with a five-year
term and will otherwise be issued on the terms and conditions set
out in Schedule 1 of the Notice of Meeting dated 26 September 2023
(Options).
Following the Placement, 31,000,000 fully paid ordinary shares
and 15,500,000 Options will be issued with shareholder approval
under Listing Rule 7.1 (obtained 25 October 2023).
The US$7.9 million secured represents the minimum amount
required to fund MGC Pharma's full business plan over the next
12-month period, that is focused on the IND applications of CimetrA
and CannEpil in the USA .
The Company currently intends to use the funds on the following
basis[2]:
-- CannEpil(R) - initiation of phase II clinical trials (in
Australia) and submission of the USA Investigational New Drug
Application (Food and Drug Administration) - c.US$2.6m;
-- CimetrA(R) - completion of phase IIB dose finding study in
Israel, and submission of the USA Investigational New Drug
Application (Food and Drug Administration) c.US$2.4m;
-- Marketing and pharmaceutical conferences costs c.US$1.2m;
-- Working capital c.US$1.3m; and
-- Costs of placement including ASX, LSE costs and prospectus
submission in the UK c.US$0.4m
The Company notes that the above use of funds is a statement of
current intentions as of the date of this announcement. As with any
budget, intervening events and new circumstances have the potential
to affect the manner in which the funds are ultimately applied.
The Investors were identified from within the existing network
of the Company's Board and executive management through a bookbuild
process, which involved seeking expressions of interest from
unrelated professional investors, sophisticated investors and/or
other investors that are exempt from the disclosure requirements in
section 708 of the Corporations Act 2001 (Cth). Furthermore, the
Company confirms that no fees will be paid to any party for
managing the Placement.
The Company confirms that no participants in the Placement
were:
-- related parties of the Company, members of the Company's key
management personnel, substantial holders of the Company, advisers
of the Company or an associate of any of these parties; and
-- issued more than 1% of the issued capital of the Company.
Indicative Timetable
Approval granted by shareholders to raise up 25 October 2023
to US$8 million (A$12.4 million)
Subscriptions closed 1 November 2023
----------------
Funds received by the Company 3 November 2023
----------------
Shares issued upon completion of the Consolidation 7 November 2023
----------------
Roby Zomer, Managing Director and CEO of MGC Pharma, commented:
"We are delighted to have secured this firm subscription following
shareholder approval at the General Meeting and this underscores
the unwavering support the Company has from high-net-worth
individuals, highlighting the trust they have in MGC's trajectory
and the impact the Company are poised to make in the pharmaceutical
industry. With this significant investment and the strong backing
of our investors, MGC is well-positioned to drive innovation,
accelerate growth and achieve remarkable milestones in the coming
months."
References to US$ and cents, and A$ and cents, in this
announcement are to the legal currency of the United States,
and of Australia, respectively. A conversion rate of USD/AUD
1.57 has been used.
-ENDS-
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 prominent
European pharmaceutical company with a strong commitment to
creating accessible and ethically produced cutting-edge medicines.
Our approach combines in-house research with innovative
technologies, all aimed at discovering and producing treatments for
currently unmet medical conditions.
The company's founders and executives are distinguished figures
in the global pharmaceutical industry. Our central business
strategy revolves around the development and supply of innovative
medicines, responding to the increasing demand in the medical
markets of Europe, North America, and Australasia.
MGC Pharma maintains a robust development pipeline that
addresses two prevalent medical conditions, with additional
products currently in the developmental stages. We've established
strategic partnerships with renowned institutions and academia,
fostering the optimization of our medicines' development. These
medicines are produced in our EU-GMP Certified manufacturing
facilities, ensuring the highest quality standards.
With a growing patient base in key regions like the USA, UK,
Australia, and Ireland, MGC Pharma has also built a global
distribution network through a wide-reaching group of commercial
partners. This extensive network places us in a prime position to
supply the global market effectively.
Follow us through our social media channels:
LinkedIn: MGC Pharmaceuticals Ltd.
Twitter: @MGC_Pharma
Facebook: @mgcpharmaceuticals
Instagram: @mgc_pharma
[1] As approved by shareholders at the General Meeting held 25
October 2023, the issue price per share was equal to the volume
weighted average price per share (on a post-Consolidation basis)
traded on the ASX during the seven trading days immediately
preceding the meeting.
[2] Refer to Notice of Meeting announced on 26 September 2023
for a line-by-line detailed use of funds.
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END
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