There were some interesting developments on Australia’s cannabusiness scene last week – here’s a few highlights.
MGC Pharmaceuticals (ASX:MXC) announced last Tuesday it had signed a formal definitive agreement with CannaGlobal for the strategic sale of 100% MGC Derma, the company’s cosmetics division. MXC will hold 10% equity in CannaGlobal following the sale of MGC Derma. Roby Zomer, Co-founder and Managing Director of MGC Pharmaceuticals said the sale will enable MXC to focus on its core business.
Then on Thursday, MGC Pharma stated it had recently commenced legal action in the United Kingdom against VarmCosmo Co., Ltd over what the company says is a breach of material contract terms. Back in October 2017, MGC Pharma inked a deal with VarmCosmo involving volving white-label versions of MGC Derma’s cannabidiol cosmetics products that it said would deliver at least $3 million in monthly sales to MGC Derma.
Althea Group Holdings Limited (ASX:AGH) subsidiary Althea Company Pty Ltd has added another licence to its portfolio, this one enabling it to export medicinal cannabis products to other countries.
“Whilst we have only been listed publicly for seven weeks, the recent granting of key licences from the Office of Drug Control is a culmination of nearly two years of hard work,” said Althea CEO Josh Fegan.
Althea was granted a medical cannabis manufacturing licence by the ODC just a couple of weeks ago.
Mr. Fegan also stated 156 patients in Australia are now being treated with Althea medicinal cannabis products, up from 127 in early November. The number of Australians currently accessing legal medical cannabis products is very low (less than 2,000 to the best of my knowledge), so this represents a significant proportion.
With regard to its proposed medicinal cannabis cultivation, extraction and manufacturing facility in Melbourne, the company reports the application for a planning permit was lodged last Monday.
AusCann Group Holdings Limited (ASX:AC8) announced last Tuesday it had appointed PCI Pharma to manufacture and release its first medicinal cannabis product line – its proprietary solid hard shell capsules for treatment of chronic pain; which are scheduled for release in the first half of next year.
As well as targeting the the estimated 1.9 million chronic neuropathic pain sufferers in Australia, AusCann says the product (no name has been provided) will also be available for supply internationally.
PCI Pharma is a US based company, but it will produce AusCann’s products at its facilities in Australia, which appear to be located in Port Melbourne, Victoria.