Shares in medical cannabis biotech MGC Pharmaceuticals spike in backdoor listing

Photo: Phil Walter/Getty Images

Medical cannabis company MGC Pharmaceuticals completed its backdoor listing on the ASX today with a reverse takeover of Erin Resources.

A short time ago, its shares were up 7.6% to $0.028.

The biotech startup has appointed Sydney cardiologist and media presenter Dr Ross Walker to its board to engage with the emerging medical cannabis market in Australia.

The company is also working with the University of Sydney business school for a white paper to advise governments on the creation of an medical cannabis industry.

MGC Pharmaceuticals is establishing its first production facility in Europe, a cultivation and extraction plant in Slovenia. The company’s skin formula for the relief of psoriasis recently passed stage 1 clinical tests and is now in stage 2 testing.

“Australia has just taken a huge step towards the creation of a medical cannabis industry with the introduction of relevant legislation to the federal parliament,” says managing director Nativ Segev.

“We are glad to see Australia embracing the benefits of cannabis and the role it can play in the treatment of painful and chronic medical conditions.”

The federal government earlier this month introduced legislation to parliament to allow the cultivation and use of medicinal cannabis under a national framework.

ASX-listed Medlab Clinical became the first commercial business involved in therapeutic cannabis research last year after being selected by the NSW Government to conduct the research at its Sydney laboratory.

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