MGC Pharmaceuticals Ltd (OTCMKTS:MGCLF) signed a pact to takeover proprietary assets, data, and an operating business of Medicinal Cannabis Clinic Pty Ltd (MCCPL), a subsidiary of Cannvalate Pty Ltd. The company will issue cash of $400,000 and $1 million worth ordinary shares in exchange for the deal, which will be closed in 90 days.
Cannabinoid prescriptions to 3,700 patients
MCCPL engages in offering various solutions that connect patients with physicians to avail of economical prescription services for cannabinoids. The company used a special access scheme to provide cannabinoid prescriptions to more than 3,700 patients since its establishment in July 2019. MCCPL is a reputed company in Australia to provide independent and excellent clinical governance practice. It reported a strong growth MoM.
The physicians use video telemedicine of MCCPL to provide consultation and prescribe cannabinoid medicines to the population in Australia. It eliminates the need for multiple visits to the pharmacy and the specialist. The company delivers medicine straight to the doorstep of the patients.
MGC increases distribution network
MGC will enhance its distribution network in Australia through acquiring MCCPL, Drug Control recently granted an import license to MGC. It allows MGC to improve margins by maintaining reasonable retail prices and inventory.
The company can now get CannEpil to treat epilepsy and CogniCann for the treatment of Alzheimer’s disease. MGC can distribute products directly to other pharmacies and clinics and save on distribution and storage costs.
Forms a new subsidiary
MGC will create a new subsidiary – New Co in Australia. It will transfer data, operating clinic-based assets, and IP of MCCPL to New Co. On obtaining the federal and state licenses to import and distribute medicinal cannabinoid products, the Australian supply chain of MGC will be moved to New Co.
New Co will be responsible for providing economical cannabinoid medications to the population in Australia. Following the takeover, the staff at MCCPL will be employed at New Co to ensure smooth operation. The patients can enjoy the same level of confidence and affordable medicines at New Co.
MGC engages in offering economical and good quality medicinal cannabinoid products to the patient population. The takeover of MCCPL expands the direct supply chain and distribution network of MGC.