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MGC Pharma & Hellenic Dynamics Both Turn to Share Consolidation as They Secure New Funding, Stenocare Celebrates ‘Milestone’ Launch into Germany

MGC Pharmaceuticals


MGC Pharmaceuticals announced this week that it has now secured ‘binding commitments’ for US$7.9m in investment, which the company says will be enough to fund its business plan over the next 12-months.

In late September, Business of Cannabis reported that MGC was at a ‘critical financial juncture’, and was eyeing a number of strategies including a restructuring plan, share consolidation and heavily discounted share issue to provide it with enough runway to continue.

On November 01, the company announced that it has now received commitments from ‘sophisticated and professional investors’ to purchase 31m fully paid ordinary shares at a price of$0.255 per share.

This represents the company’s largest single investment to date, and is understood to have come entirely from Israel and the US, representing a shift away from its previous financial bases in the UK and Australia.

Alongside this, MGC received approval for its planned 1000:1 share consolidation, due to be completed today (November 02, 2023).

This will see its 4.4bn shares in circulation reduced to 4.4m. However, following the placement of the 31m new shares, set to be finalised by November 07, this will increase to 35.4m.

In a note to investors, MGC suggested that initially only 3m shares will be admitted by the UK’s Financial Conduct Authority’s Official List to trade on the Main Market of the London Stock Exchange, seeing the remaining 32m admitted to the Australian Stock Exchange.

“These remaining ordinary shares are anticipated to be admitted to the Financial Conduct Authority’s Official List and to trading on the Main Market of London Stock Exchange plc in due course and in accordance with the applicable regulatory timeframe under the FCA Listing Rules”.

MGC says it plans to spend $5m of its new investment funding clinical trials for its two leading compounds, CannEpil and CimetrA, alongside funding submissions to have the drugs approved in the US. The remaining money will be spent on marketing ($1.2m) and working capital expenses ($1.3m).

Hellenic Dynamics 


Its LSE-listed stablemate Hellenic Dynamics also announced similar plans over the past week, seeing its share price dip by over 40%.

On October 26, 2023, just weeks after announcing that it had now commenced cultivation at its facility in Greece, Hellenic informed investors that it had received a US$3m mezzanine loan facility ‘allowing the company to move forward with its expansion plans’.

Alongside securing the loan, Hellenic similarly announced plans to enact a 100:1 share consolidation, subject to shareholder approval, as part of a wider capital reorganisation, as well as proposing the adoption of new articles of association.

Its loan was provided by RiverFort Global Opportunities on a 36-month term at an interest rate of 15%, which will see $450k advanced immediately, and a further $300k available during the next 150 days.

To receive this second tranche of funding, Hellenic must complete the share consolidation and either book £250k in product sales, or provide proof that it has received further grants which ‘result in aggregate net receivable of no less than £250k’.

“Subject to the satisfaction of these conditions, the Company will have the ability to request further drawdowns up to a maximum total additional amount of US$2.25 million. The Company will pay interest only on the drawn down funds”.



Danish medical cannabis manufacturer Stenocare announced on Monday that it is now ready to begin selling its products in the German market, in what it described as a ‘milestone for the company’.

In June, Stenocare reported that its ‘Extrakt’ cannabis oil, which contains a balanced mix of 10mg/ml of THC and CBD, was approved for sale by the German Federal Institute for Drugs and Medical Devices (BfArM).

This product will reportedly be eligible for reimbursement by insurance companies in Germany, giving much broader access to treatment for the country’s hundreds of thousands of medical cannabis patients.

The first shipment has reportedly been sent this week and is set to be distributed by its German partner ADREXPharma.

According to Stenocare the 10-10 oil product category is the most prescribed in Germany for medical treatment, and while it has stipulated that it is yet to learn the specific dynamics of the German market, it says this represents a ‘door opener to an attractive market’.

CEO of Stenocare, Thomas Skovlund Schnegelsberg said: “We have prepared for our German entry for a long  time. Now we are ready to ship the first medical cannabis oil products to German patients with our local partner. This is a huge milestone for the company.

“Germany has grown significantly since the legalisation in 2017, and it feels like jumping onto a train in full motion. We are humbled by its size and momentum, but we have a solid strategy to help us onboard and to enjoy the ride.”

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