Medical cannabis company MGC Pharmaceuticals shares are on a tear

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MGC Pharmaceuticals, which is building a medical cannabis business in Australia, closed a $2.5 million equity raising oversubscribed.

A short time ago, the shares were up 13.6% to $0.05. The capital raising was priced at 4.4 cents a share.

The company says it received a very strong response from shareholders.

Earlier this month the biotech company completed a $5 million equity raising, also oversubscribed, from “sophisticated and professional investors”.

MGC Pharma did a backdoor listing on the ASX in February with a reverse takeover of Erin Resources.

The company is working on applying for a cannabis growing license from relevant state departments.

Last month MGC Pharma announced the purchase of a Czech-based company so it can develop new strains of medicinal cannabis and increase production.

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