Close this search box.

MGC Pharmaceuticals Announces Its First Tranche Of Funding Has Been Received Under New Financing Facility

MGC Pharmaceuticals Ltd (ASX, LSE: MXC, ‘MGC Pharma’ or ‘the Company’), , a European based bio-pharma company specialising in the production and development of phytomedicines, confirms that it has received the first funding tranche of US$1.2m under the new US$10 million Financing Facility with Mercer Street Global Opportunity Fund, LLC, a fund managed by Mercer Street Capital Partners, LLC, a United States-based institutional fund manager (together, “Mercer”) and MGC Pharma’s largest shareholder, as announced on 29 July 2022 (US$10m Financing Agreement).

The first tranche funding of US$1.2m provided under the new US$10m facility has been received in full, and the Company will now proceed to issue 1.32M of convertible notes with a face value of US$1.00 each to Mercer Street (Tranche 1 Notes) under the terms of the Financing Agreement. The Company will also issue 21,511,545 fully paid ordinary shares to Mercer today as part of the US$10m Financing Agreement.

New US$10m Financing Facility Secured with Mercer

This new US$10m financing facility provided by the Company’s largest shareholder Mercer Street Global Opportunity Fund, fully funds MGC Pharma’s current business plan and replaces the unused A$9.25 million of the previous funding facility established in September 20201, as detailed in the Company’s ASX Quarterly Reports including most recently the 4C for the quarter ended June 2022.

This US$10m financing facility provides MGC Pharma with access to significant capital to fund the execution of its business commercialisation strategy, primarily with Sciensus Rare in the UK and EU and AMC in the USA, as well as advance regulatory approvals for the Company’s proprietary products in order to drive revenue growth, assist in the rollout of the ZAM App and provide funding for the Group’s general corporate expenses. The Company will continue to implement significant non-revenue driving cost reductions, as announced in it recent June Quarter Activities Report, within the operations, including the delay of non-core clinical trials.

Roby Zomer, Co-founder and Managing Director of MGC Pharma, commented: “Mercer’s new US$10m finance facility provides the Company with access to funding for MGC Pharma to continue to execute its business strategy of opening up key strategic markets over the next 6 months. During this period the business strategy will focus primarily on generating revenue growth through our existing relationships with Sciensus Rare in the UK and Europe, and AMC in the USA.

“In addition to its sales growth strategy, MGC is very excited about the potential value that the recent 40% acquisition of the ZAM medical data collection App, and its associated machine learning algorithm bring to the Company. This investment it not only aimed at reducing R&D costs and providing the Company with critical proprietary clinical data in the future, but also provides the MGC with the potential for a future additional revenue stream and a value creating asset on the back of the software’s successful implementation and rollout.”

Related Posts

Related Posts


Related Posts

Related Posts

Recent Posts

Related Posts

Subscribe to our mailing list to receives daily updates!

We won’t spam you


Browse by Tags




© 2023 Prohibition Holdings Ltd. All Rights Reserved.


Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?