MGC Pharma Enters Australian Market With $1.4M Purchase Of Medicinal Cannabis Clinic

Bio-pharma company MGC Pharmaceuticals MXC MGCLF has purchased Medicinal Cannabis Clinic (MCC) for $1.4 million.

MGC inked the deal — $1 million worth of its shares and $400,000 in cash — with MCC's parent company Cannvalate to fully-acquire the Australia-based medicinal cannabis company.

Under the deal, MGC will also obtain MCC's doctor and patient network.

MGC set up a new subsidiary to control MCC's assets, data, and intellectual property.

MGC co-founder and managing director Roby Zomer said MCC's purchase would "grow our distribution network and direct supply chain capabilities in both Australia and Internationally," enabling them to achieve their “cash flow breakeven targets.”

MGC's operations are centered around the manufacture and development of phytocannabinoid-derived medicines.

MCC was launched in July 2019 and, since then, has served more than 3,700 patients.

In addition, the clinic's network includes 2,480 referring doctors and 60 pharmacies across Australia.

Meanwhile, Cannavalate has been teaming up with other cannabis companies willing to enhance its footprint in "the Land Down Under."

Last month it opted to manage the $50 million worth construction of a medicinal cannabis plant in Melbourne's south-east region.

The project will be funded by Valens GroWorks Corp. VLNS VLNCF, according to The Sydney Morning Herald.

Australia has been witnessing similar deals recently.

In May, THC Group Inc. (ASX: THC), a medicinal cannabis producer, entered into a $3 million deal to acquire Tetra Health.

Courtesy photo