Despite shying away from the limelight again recently, pot stocks continue to make ground. With several local players steadily advancing towards their goals.
Today, that is exactly what MGC Pharmaceuticals Ltd [ASX:MXC] has done. Announcing that the company is set to become the first pot stock to list on the London Stock Exchange (LSE).
A key breakthrough not just for MGC, but for the entire industry.
Let’s dig into what they had to say on the matter…
Smoke Signals from Europe
Next Tuesday, 9 February, will be MGC’s big London debut. Setting the stage for what may be a stark turnaround on medicinal cannabis.
Having already raised $12 million from a local UK share placement, MGC is hoping to attract more investment. From both institutional and retail shareholders.
More importantly though, they are clearly trying to attract awareness. Promoting and familiarising local businesses, groups, and individuals with the idea of medicinal cannabis. A somewhat touchy subject for the UK still.
With this funding round though, MGC will be able to proceed with their key Phase III and Phase II trials. The results of which will hopefully showcase the incredible properties of cannabis as a potential anti-inflammatory as well as a treatment for epilepsy.
Because if they can prove that, then not only with MGC prosper, but it may open up the market for other pharmaceutical solutions to prosper too.
For now though, the short-term focus is simply ensuring these trials go ahead. As Managing Director Roby Zomer comments:
‘We are delighted that following the significant progress and achievements of our company to date we are now placed to be the first medicinal cannabis company to list on the LSE. This is something we have been working towards for over 18 months, realising our strategic ambition to be closer to our operations in Europe with greater access to key UK and European strategic investors.
‘We are already seeing the benefits of this decision, with the strong show of support from a number of leading UK institutional funds and sophisticated investors for the Placing, which was significantly oversubscribed, to coincide with our LSE listing.
‘The funds will primarily be used to support the Company’s growth ambitions and key clinical research programs for our leading products, as we continue to expand our manufacturing capabilities, increase our product range and expand into new and existing key markets.’
What’s Next for the MXC Share Price?
As I’ve explained, the focus for MGC now moves to these trials. With the Phase III trial for ArtemiC planned for the first half of this year. Meaning it should only be a few months away.
Beyond this though, the future of the company will rely upon their product development and commercialisation strategies. Objectives that they clearly have plans for, but will be revealed in due time.
For shareholders at least, today’s update brings them one step closer to these final goals. A point where the company can actually start making meaningful sales and possibly profits from the sale of medical cannabis products.
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For Money Morning