MGC Pharma and Mercer Street Capital have signed a US$10m (~£8.22m) financing agreement. The company has also announced it intends to acquire 40 per cent of AI firm ZAM Software Limited (ZSL).
MGC Pharmaceuticals has entered into a new convertible securities financing agreement with Mercer Street Global Opportunity Fund, LLC, a fund managed by Mercer Street Capital Partners, LLC.
Additionally, MGC Pharmaceuticals has also announced that it has executed a binding Share Purchase Agreement (SPA) to acquire 40 per cent of ZSL. ZSL is the owner of a real-time data collection software with proprietary Artificial Intelligence (AI) algorithms.
Read more: MGC Pharma sees progress across clinical pipelines
MGC Pharma has stated that the investment in ZSL’s AI software is critical to the company’s plans for an accelerated rollout and commercialisation of the ZAM Medical Data App (ZAM App), for use across pharmaceutical and health care sectors.
The financing facility with Mercer Street provides MGC Pharma with access to significant capital in order to execute its business commercialisation strategy primarily, with Sciensus Rare in the UK and EU and AMC in the USA, as well as advance the regulatory approvals for the company’s proprietary products to drive revenues, assist in the rollout of the ZAM App and provide funding for general corporate expenses.
Co-founder and managing director of MGC Pharma, Roby Zomer, commented: “This $10m agreement is testament to the progress we have made over the last 18 months. The partnership with Mercer will allow us to fast track our commercial and clinical activities, and advance our company growth strategy.”
Jonathan Juchno, Managing Partner, Mercer Street, commented: “Having been a shareholder for the last two years, we have been fortunate to witness first-hand the progress made by MGC Pharma and we are excited to continue our relationship with them and to support the efforts of management in bringing their products to market.”
Regarding the ZAM App, MGC has stated that it will be launched in two phases, firstly through a closed launch to collect data from 100 patients enrolled through MGC Pharma’s Australian telehealth business, Medicinal Cannabis Clinics (MCC). In time, the ZAM App and its associated AI machine learning capability, will help predict potential intra-treatment side effects, and generate statistics to measure aggregate and holistic treatment outcomes.
The ZAM App offers the possibility of personalising medication, not just with cannabis-based products, but with all patient treatments and pharmaceutical drugs.
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