European corporate and pharmaceutical industry expert Dr. Stephen Parker appointed Non-Executive Director
ASX Announcement 13 March 2019
- Experienced European corporate, pharmaceutical industry and investment director, Dr. Stephen Parker has been appointed to the MXC Board as Non-Executive Director
- His appointment brings MXC 30+ years of experience, deep sector understanding and an extensive network of connections within the pharmaceutical and investment industries
- Dr Parker currently holds multiple prestigious Board positions at leading UK listed Biopharma companies, including Sareum Holdings plc and Silence Therapeutics plc.
- Dr Parker’s appointment demonstrates MXC’s commitment to developing and expanding its European operations and delivering on its seed-to-pharma growth strategy
MGC Pharmaceuticals Ltd (ASX: MXC, “MGC Pharma” or “the Company”) is delighted to welcome Dr Stephen Parker to the Board as Non-Executive Director, effective 13 March 2019. Dr Parker brings highly complementary pharmaceutical industry and corporate expertise to the Board and will provide support for the implementation and execution of the Company’s strategy to become a leading European bio-pharma company within the medicinal cannabis sector.
Dr Parker has over 30 years of corporate finance, directorship, corporate advisory and investment banking experience focussed on the pharmaceutical and biotechnology sectors in the UK, Europe and North America. He is currently Non-Executive Chairman of AIM listed oncology therapeutics company, Sareum Holdings Plc (LON: SAR) and a Non-Executive Director of AIM-listed RNA-therapeutics focussed company, Silence Therapeutics Plc (LON: SLN).
Dr Parker is regarded as a leading corporate expert and strategic thinker. He has a reputation for rapid and clear analysis and the ability to translate this analysis into an implemented solution. This has led to senior consulting roles at a number of listed companies, as well as his investment banking experience at Baring Brothers, SBC Warburg Dillon Read and Apax Partners. He is FCA authorised, an affiliate of the Institute of Chartered Accountants in England & Wales (ICAEW) and a Fellow of both the Royal Society of Chemistry and Royal Society of Medicine.
The Board believes that Dr Parker’s extensive experience working with pharmaceutical and investment companies will be invaluable for MGC Pharma and its growth. His relationships strengthen the Company’s market position within the UK and Europe and with both support the operational business and expedited access into the UK pharmaceutical capital market. Furthermore, his appointment reinforces the Company’s commitment to delivering exclusively on its seed-to-pharma growth strategy from its existing EU base of operations, and the planned expansion of its MGC Pharma product pipeline starting with CannEpil and CogniCann, into key emerging European and UK medicinal cannabis markets. CannEpil is the Company’s proprietary CBD-based medication that is used as a treatment for people with refractory epilepsy and CogniCann is being developed for the treatment of major dementia symptoms and improve certain cognitive functions.
Commenting on his appointment, Stephen Parker, Non- Executive Director said:
“MGC Pharma is a standout company within the medical cannabis space with a clear development path and excellent growth potential. I am delighted to join the already highly experienced research and operational team and I am looking forward to playing an active role in the development and expansion of the Company’s international presence. Having worked within the pharmaceutical investment world for many years I can clearly recognise the potential in the cannabinoid sector, and I believe the structure, operational platform and product pipeline of MGC Pharma will drive it to the forefront of the European industry.”
Roby Zomer, Co-founder and Managing Director, MGC Pharmaceuticals commented
“We are delighted to welcome Stephen to the Board of MGC Pharmaceuticals and look forward to working with him as we look to create and supply best in class Cannabinoid based pharmaceutical products for medical markets in Europe, North America and Australasia.”
“His experience in London with various investment banks and pioneering pharmaceutical companies has given Stephen a unique and focussed skill set which will be an asset to us. The sale of MGC Derma and Stephen’s appointment have coincided perfectly and facilitate the next stage of development as a biopharma company. I look forward to providing regular update as we progress the business and deliver on our strategy”
Independent Validation of MXC High-Grade Cannabis Genetics
ASX Announcement 26 February 2019
- New University of Ljubljana laboratory test results have confirmed and validated MXC’s proprietary genetic strains containing industry high levels of THC and CBD
- Strain MXC-10 contains over 35% THC and is the highest content of any MXC genetic strain cultivated to date, confirmed by recent independent laboratory tests
- MXC-81 confirmed to yield over 20% CBD and <1% THC through the testing protocols
- These results are significant on a global cannabis industry scale, and will deliver material implications for the yields of future cultivations and delivering low operating costs for the Company’s commercial operation to be constructed in Malta
- From these strains, MXC will be able to extract high amounts of API per kilogram of raw materials, to extract cost effective and affordable phytomedicines
MGC Pharmaceuticals Ltd (ASX: MXC or “the Company”) is pleased to announce it has received independent verification and validation of its premium grade THC and CBD genetic strains. These strains are now being registered with the EU.
The University of Ljubljana Biotechnical Faculty and Pharma Lab in Slovenia has independently confirmed the recent test results of the Company’s new cannabis genetics strains, as announced on 1 February 2019. The independent report has verified that all compliant procedures and protocols were followed during MXC’s cannabinoids extraction process from its 2018 Slovenian breeding program during the vegetative growth and flowering stages
The flowers were harvested and dried and the cannabinoids have been extracted at The University of Ljubljana Biotechnical Faculty, with results recently independently verified by Prof Dr Borut Bohanec, Head of the Chair of Genetics, Biotechnology, Statistics and Plant Breeding at the University. High percentages of THC and CBD have been extracted and verified from MXC’s proprietary strains: genotypes MXC-THC-10/3 (high THC), MXC-THC-81/5 (high CBD), MXC-THC-40/3 (high THC) and MXCTHC-40/2 (equal THC CBD)1 .
Genetic Development at the University of Slovenia Biotechnical Facility
MXC-10 contains over 35% THC and low CBD (<0.5%) and is the highest potency offering of any of MXC’s products launched to date. These high-yielding strains deliver significant commercial outcomes, as they allow the Company to yield high amounts of API per kilogram of raw material in order to create the most cost effective and affordable phytomedicines.
Additionally, the high-quality strains allowed MXC to substantially improve the chemical substance of its original genetic strain; MXC-81. This strain now contains over 20% CBD and low THC (<1%) as compared with 10% CBD and low THC (<1%), as was achieved in 2015.
An additional breeding round will be conducted as part of the genetics registration in the EU to demonstrate the stability of the strains. MXC will keep shareholders updated on its botanical breeding program with the Biotechnical Faculty botanical research program.
Roby Zomer, Co-founder and Managing Director, MGC Pharmaceuticals commented
“We are pleased to have further validation of the recent findings by the University of Ljubljana validating the important results for the MGC Botanic division. These results are important for us and our development as a pharmaceutical company working towards bring a plethora of premium medicinal cannabis medications to market.”
“Such high quantities of THC and CBD means we can scale up production while streamlining operations due to the costeffective nature of the yield.”
Completion of MGC Derma Sale to CannaGlobal
ASX Announcement 29 January 2019
- All formal sale documents lodged with Slovenian courts have been processed and settlement has now been completed, delivering 100% ownership of MGC Derma to CannaGlobal
- The Company has been issued shares in CannaGlobal representing 10% of their outstanding share capital, and MXC is now a strategic shareholder in the CannaGlobal worldwide cannabis business and investments
- The acquisition of MGC Derma represents a cornerstone investment for CannaGlobal, which is focussed on growing strategic investments and businesses within the cannabis industry globally
- Completion of this transaction represents the completion of a significant milestone for MXC as it can now focus on its corporate strategy of becoming a world leading, European based bio-pharma company
MGC Pharmaceuticals Ltd (ASX: MXC or “the Company”) is pleased to announce the sale of MGC Derma d.o.o (“MGC Derma”) to private Canadian cannabis investment company, Cannaglobal Canada Co Inc. (“CannaGlobal”), has been formally completed.
Following the submission of all notarised share transfer documentation to the Slovenian court, the share transfer has been legally ratified and settlement of the MGC Derma sale has completed. Completion of this process delivers 100% ownership of MGC Derma to CannaGlobal, and MXC now holds a strategic 10% equity interest in CannaGlobal.
Completion of this transaction represents a landmark for the Company, as the divestment of MGC Derma allows the Board to focus its resources into becoming an EU based, leading pure bio-pharma company and deliver on its seed-to-pharma business model.
As part of the deal, MXC will continue the cosmetic production for CannaGlobal and the sales of the cosmetics raw material which includes Aquiol™ - MGC’s CBD Water Soluble propriety, for a minimum of five years. This will allow MXC to gain value directly from the success of the brand and increase in sales from the supply of the cosmetics raw materials to MGC Derma. Additionally, MXC will hold direct investment exposure and potential value upside through its 10% shareholding in CannaGlobal, from the future success of not only MGC Derma, but the other investments made by CannaGlobal and its growing cannabis product portfolio.
Overview of CannaGlobal
Headquartered in Toronto and London with multiple international offices, CannaGlobal is a growing Canadian investment company with a global portfolio of cannabis assets. CannaGlobal was founded by the high-profile Canadian entrepreneur, Lorne Gertner, is led by a diverse group of proven industry leaders and is focussed on capitalising on cannabis 3.0 - the normalisation of cannabis products and their subsequent impending mass market adoption.
The CannaGlobal business model is supported by recent legislative changes in a number of countries and as society moves towards legalisation, CannaGlobal expects there to be a dramatic shift in delivery mechanisms of both CBD and THC.
The acquisition of MGC Derma is a cornerstone investment for CannaGlobal, as a leading example of a prestige mainstream cannabis brand. The MGC Derma skincare range, enhanced by the addition of MGC Pharma’s proprietary Aquiol™ process, delivers a combination of the highest quality skincare ingredients with the addition of pharmaceutical grade CBD.
MGC Derma represents an established example of cannabis retail product normalisation in a fast-growing market, by selling premium grade cannabis-based products through existing and respected retailers.
Over the coming year, CannaGlobal will continue to sharpen the MGC Derma offering by expanding its current range, adding additional products that will allow sale into new markets. CannaGlobal is focussed on expanding its Cannabeauty division both organically and via acquisitions into a leader in the cannabis cosmetics industry.
CannaGlobal continues to pursue other strategic investments within the cannabis industry and has built strong relationships across six continents. All investments are specifically chosen to support the CannaGlobal business model of building and supporting the commercial global cannabis industry. This, in turn will create a positive and growing economic market in underserved countries.
CannaGlobal has also established a number of investments to support its strategy of benefiting from global cannabis normalisation. These include Cannasmoke, a leading international producer of branded hemp cigarettes and Cannaconnect, a creative and media platform designed to communicate a higher standard of cannabis lifestyle content around the globe.
CannaGlobal is also pursuing commercial opportunities in traditional consumer categories including; gum, water, chocolate and alcohol. Partnering with consumer goods companies, these are products that include hemp, CBD, THC or a combination of both and represent the first step towards the legalisation of ingestible cannabis products.
Major Regulatory Milestones Achieved for Pharma Business
ASX Announcement 22 January 2019
- TGA has approved TGO93 Declaration Form, advising that our CTN (Clinical Trial Notification) for CogniCannTM into Alzheimer’s and dementia at the University of Notre Dame has been processed and is available in the Clinical Trials Repository
- Government approval for API Extraction at MXC’s European Facility - now one of the first EU facilities to be granted a full API extraction permit, issued by the Slovenian Ministry of Health. MXC can now develop its own THC, CBD and other Phytocannabinoids as API’s for the formulation of CannEpilTM, CogniCannTM and future phytomedicines
- SME certification issued by the European Medicines Agency (EMA); providing access for scientific advice, drug evaluation and registration of CannEpilTM, CogniCannTM and additional Phytomedicines that the Company is developing. It also provides MXC the opportunity to obtain fee reductions up to 100% in the development and registration of priority medicines (PRIME)
- Each achievement delivers on the Board’s strategy and commitment to the growth of MXC’s pharma business and demonstrates the Company’s progress to deliver near-term commercial outcomes on its seed-to-pharma strategy
MGC Pharmaceuticals Ltd (ASX: MXC or “the Company”) is pleased to announce its pharma business has achieved a number of key milestones for its European and Australian manufacturing and research operations over recent weeks, that materially advances the Company towards commercialisation and delivering on its seed-to-pharma business strategy. These results deliver real outcomes and major milestones from the excellent work of the Company’s management and its employees, and executing the vision of building a leading European bio-pharma company for all MXC shareholders
TGA approval for CogniCannTM use during clinical trial
In a major achievement for its product development pipeline, the Company has received formal approval by the TGA for our TGO93 Declaration Form, informing that our CTN (Clinical Trial Notification) has been processed and is now available in the Clinical Trials Repository. The approval allows MGC to initiate its Phase IIB Clinical Trial on Dementia and Alzheimer patients with UNDA in WA, and start the recruitment of patients, using its second GMP certified IMP (investigative medicinal product) CogniCannTM.
The trial has been approved by the Human Research Ethics Committee and will focus on the effects of the medicinal cannabis treatment on the symptoms of mild dementia and Alzheimer’s and the improvement of patient’s quality of life, at the University of Notre Dame, Western Australia.
Receipt of TGA approval signals the start of patient recruitment and the 16-week trial remains on track to commence in H1 2019.
During the trial, CogniCannTM specifically formulated by MXC, will be tested on a total of 50 patients aged 65 and over, alongside a series of pre and post-treatment surveys and focus groups that will be used to assess the effects of the product.
Government Approves European Manufacturing Facility for Extraction of Phytocannabinoid API
In a significant operational milestone for the Company to be one of the only in the EU today, MXC has received a permit from the Slovenian Ministry of Health granting it with permission to operate its Phytocannabinoid extraction at its Manufacturing Facility in Ljubljana, for the purposes of;
- Development of new formulations with Phytocannabinoids coming from different genetics to gain different and new natural API
- Development of own Phytocannabinoids (THC, CBD, etc.) active ingredient API (Active Pharmaceutical Ingredient) from cannabis plants
- Optimize and validation of the extraction and isolation process with the purpose of control and understanding of all components
MXC’s is one of the first European Union facilities to receive permission to extract and develop its own natural Phytocannabinoid API at its European manufacturing facility, delivering the Company a significant edge towards the full vertical integration for production of its own bio-pharma products. All findings and intellectual property from the process will be used to formulate the future pipeline of the Company’s phytomedicines.
This is a landmark milestone for MXC, as the company can now produce its API’s in house at a very low cost base for its own Phytomedicine production, delivering vertical integration in the whole value chain to produce high margin, affordable medicine products for sale. Furthermore, it will allow MXC to develop new formulations based on new Phytocannabinoids which are not available in the market as API and will give the company the edge in better, more efficient Phytomedicines formulations.
Receipt of this permit illustrates further progress as the Company moves towards final stages of seed-topharma phytomedicine development and the Company’s ability to commercialise medicinal cannabis treatments globally.
MGC PHARMACEUTICALS IN ACTION
Description: CannaTech Conference attended by MGC Pharmaceuticals in London, October 2017.
Description: Interview of Nitin Mantri, Senior Lecturer at RMIT University, as he discusses the first project of the collaboration between MGC Pharma and RMIT.
