Australian Stock Exchange listed MGC Pharmaceuticals announced yesterday it had inked an agreement to acquire Czech-based medical cannabis company, Panax Pharma.
The acquisition is valuable to MGC as Panax holds a medical cannabis license and access to 1,000m2 of indoor growing space in the Vukoz Research Institute in Průhonice.
This will enable the company to develop new strains of medicinal cannabis, grow on a continuous basis and have a reliable supply of cannabidiol (CBD) for use in its clinical trials and recently launched MGC Derma line of cosmetic products.
MGC Pharma believes it will be able to process 1,400kg of medical cannabis biomass waste annually, from which it could extract up to 90 kilograms of CBD. CBD extracts can cost between USD $40,000 per kilogram to over $100,000 per kilogram depending on purity.
One of the advantages of the licensing is it allows the cultivation of medical cannabis without restrictions on levels of the intoxicating cannabinoid, tetrahydrocannabinol (THC); which is often restricted under medical cannabis production licenses. This will give MGC Pharma greater scope in terms of research and the types of medical cannabis products it can develop.
As part of the agreement, the company will also acquire a license to import and export cannabis to/from the Czech Republic.
“Our acquisition of Panax significantly strengthens MGC Pharma’s medical cannabis research and production capabilities,” said Nativ Segev, MGC Pharmaceuticals’ Co-founder and Managing Director.
“Not only does it build on our outdoor Slovenian growing facility and production capacity, it also allows the Company to produce high intensity medical grade cannabis products for our clinical trials and research
programs planned for Israel, Europe and eventually in Australia.”
Mr. Segev was previously the CEO of Israel’s second largest licensed medical cannabis company, Cann Pharmaceuticals.
Europe-based MGC Pharma listed on the Australian Stock Exchange last year after a reverse takeover of Erin Resources. The company is one of currently just a few ASX listed medical cannabis companies.
Among the Directors of MGC is Dr Ross Walker; a well-known practicing cardiologist and a health presenter in the Australian media.