MGC Pharmaceuticals told shareholders attending its Annual General Meeting (AGM) that it is on track to deliver ‘far and away the best financial performance of the company’ in the coming months.
Brett Mitchell, MGC’s co-founder and executive chairman, said the company’s strong sales pipeline and performance had continued through its December quarter, putting it on a trajectory to see record figures on a ‘quarterly, half year and full financial year basis in financial year 2022’.
Crucially, Mr Mitchell said that if its new drug CimetrA, which has been thrust to the forefront of its pipeline over the last six months, is given emergency approval in just one market then the company’s finances would be transformed ‘overnight’.
CimetrA is a drug developed by MGC designed to treat mild to moderate cases of COVID-19, currently in phase three of FDA approval.
According to MGC, CimetrA stops the acceleration of COVID patients into the Cytokine Storm, currently one of the leading causes of mortality for COVID sufferers globally.
Currently the drug is in the early stages of approval as an Investigational Medicinal Product (IMP), and is being considered for approval under Emergency Use in the USA, India and several other Eastern European countries.
“If we get an emergency use approval in the short term in one country, let alone multiple which we’re applying in, that is a game changing milestone for the company.”
Mr Mitchell added that in the longer term, MGC expects to be able to deliver commercial contracts off the back of such authorisation.
Without emergency approval, MGC is reportedly on track to achieve ‘cash flow breakeven status… very quickly’, with more company announcements set to be released in the coming days.
“But certainly, if the company was to achieve emergency use authorization for CimetrA in one country, like India, suddenly, that would happen overnight.
“So that’s why we focus so many of our resources, our time, effort, energy and money in trying to achieve that and that strategic outcome for the company over the last six months. It’s a game changer overnight.”
Last week MGC announced that it received its first $750,000 cash deposit from AMC Holdings as part of its three-year $24m supply deal announced in August.
AMC is understood to have placed a $3m purchase order for 110,000 units of CimetrA, marking the largest single order of the drug to date.
UK to Become New Home
MGC also said ay last week’s AGM that the UK will become the centre of its corporate operations moving forward.
After becoming the first cannabis-based company to list on the London Stock Exchange earlier this year, two UK investment powerhouses – Chelverton Asset Management and Premier Miton – remain two of MGC’s largest shareholders.
Alongside the ‘tremendous capital market support’ MGC has received in the UK, it also sees it as a major sales market moving forward.
“The UK is not only a corporate centre for us now, we’ll be setting up our corporate operations and will be based there moving forward, but also it’s now actually developing into a significant revenue generating centre for us.”
While Mr Mitchell said revenues were still being driven from Australia, MGC was now ‘getting significant product sales and revenues generating out of new markets, including Ireland and the UK.
“The UK is one of those markets that’s starting to significantly open up for us without phyto cannabinoid medicines.”
Last week, BusinessCann revealed that MGC’s CannEpil drug has become the first to be prescribed to a patient through Ireland’s state-approved Medical Cannabis Access Programme (MCAP), and remains the only drug to be approved on the programme.
Earlier this week MGC announced it had completed a £5.5m share placement ‘supported by a mix of institutional and family office investors from the UK and USA, comprising both new and existing shareholders’.