MGC Pharmaceuticals announced the closure of its share purchase plan (SPP) this week, seeing the company successfully raise a further A$834k (£426k).
On August 30, MGC informed investors via an RNS that its SPP, launched on August 1, 2023, had seen ‘applications from eligible shareholders’ to purchase a total of 362,608,570 new fully paid ordinary shares at $0.0023 per share.
Pending shareholder approval, applicants will also be granted ‘one free attaching option exercisable at A$0.003 (0.3 cents) each on or before 31 July 2026 (Options) for every two (2) Shares subscribed for under the SPP’.
Following the launch of the SPP at the start of August, MGC extended the closing date by a week on August 18, but a number of shares totalling A$1,851,728 remained unsold, and will be placed under a ‘shortfall offer’, again pending shareholder approval.
“The Company plans to pursue additional funding under the shortfall offer and intends to apply all funds received toward production, material and laboratory costs, servicing existing debt, corporate and audit costs and ongoing working capital,” MGC said in a statement.
It follows an update weeks earlier in which MGC revealed ‘positive pre-clinical results’ for its proprietary CimetrA compound, which has demonstrated anti-inflammatory effects and could be an effective treatment against the ‘main reason for mortality in severe COVID-19 patients’.
According to the company, the study was undertaken on 32 domestic swine, and following a full chronic safety and toxicology analysis was ‘found to be safe’.
Roby Zomer, CEO and Managing Director of MGC Pharmaceuticals, commented: “We are delighted with the positive clinical trial results for CimetrA® which paves the way for our IND submission to the FDA next year. The potential addressable market for our anti-inflammatory and immunomodulating product is considerable and this represents a key milestone for the business.”
Danish medical cannabis operator DanCann Pharma also announced the issuance of new shares recently as part of a debt conversion.
On June 02, 2023, DanCann announced that it had agreed to borrow an aggregate amount of DKK 18,900,000 (£2.2m) and DKK 8.2m warrants from Nordic Growth Opportunities 2, an investment vehicle managed by a European family office focusing on high growth sectors.
This new 10-year financing agreement, was agreed weeks after the company unveiled its financial figures for the full year 2022.
As part of these figures, the company cautioned that ‘at the time of approving the annual report’, it did not have the necessary capital to implement all the company’s initiatives and operations for the 2023’, and would therefore be seeking further funding via the exercise of warrants.
The initial tranche of DKK 6.6 million of the total loan amount has already been received by the company, with two remaining tranches of DKK 6 million and DKK 6.3 million set to be dispersed by the ‘investor during the remaining period of approximately 12 months upon the company’s request’.
On July 25, the investor requested the conversion of DKK 500k as part of the agreement, seeing DanCann issue 2.2m new shares at 0.0375 each to Nordic Growth, diluting existing shareholdings by around 2.6%.
Earlier this month (August 18), a further DKK 450k was requested, seeing DanCann issue another 2.3m shares at DKK 0.0375 each, diluting existing shareholdings by 2.63%.
These share offerings have now reduced the company’s debt from DKK 660k to DKK 5,650,000, but have done little to help the company’s share price.