Join

Enter Details

Comment on stories, receive email newsletters & alerts.

@
This is your permanent identity for Business Insider Australia
Your email must be valid for account activation
Minimum of 8 standard keyboard characters

Subscribe

Email newsletters but will contain a brief summary of our top stories and news alerts.

Forgotten Password

Enter Details


Back to log in

Medical cannabis company MGC Pharma just raised $10 million

Photo: Robert Gauthier/Los Angeles Times/Getty Images

MGC Pharmaceuticals has raised $10 million to accelerate development of medical cannabis products and seek acquisitions.

The placement at $0.065 a share, a 25.29% discount to its last traded price of $0.087, was significantly oversubscribed by professional investors from Asia, Australia and North America, including the Merchant Opportunities Fund.

A short time ago, the shares were at 8 cents.

MGC Pharmaceuticals now has more than $13.5 million cash.

The funds will be used for clinical studies and the research and development of pharmaceutical-grade medical cannabis products.

The company is also aggressively assessing acquisition opportunities in the Australian and international medicinal cannabis sector.

Nativ Segev, co-founder and managing director, says the raising is a substantial validation of the enormous potential of medical cannabis.

“These funds will allow us to fast-track the research, development and commercialisation of our own pharmaceutical-grade products which could potentially treat a variety of indications,” he says.

Shares in medical cannabis-related companies have been surging on the ASX.

MMJ Phytotech went from 18 cents to 75 cents a share and Auscann Group from 21 cents to 83 cents.

Stemcell United, which announced it was looking at medical cannabis opportunities, is currently trading at 32 cents, up from a low of 1.3 cents, after briefly hitting $1.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.