Revenue has started to flow from MGC Pharmaceuticals’ five-year supply deal with private Canadian cannabis investment company CannaGlobal for cannabis-based cosmetic raw materials.
MGC has received a purchase order of about $700,000 for the first full bulk product order from CannaGlobal.
About $259,000 has already been received and the balance is due on completion of product line manufacturing in the third quarter of 2019.
The five-year supply deal formed part of the sale of the company’s cannabis-based cosmetics business, MGC Derma, to CannaGlobal earlier this year.
Separately, MGC has also received a $173,000 payment for the delivery of cannabidiol raw material to lifestyle and medical cannabis product manufacturer Mabsut Life under their multi-year supply agreement, reached in November 2017.
The company noted the orders from Mabsut are continuing to increase and that the agreement is on track to deliver annualised revenues of $1m.
MGC added that a 28-day retail beta test of its cannabidiol and hemp-enhanced nutraceuticals product range on Chinese e-commerce import platform YuShop Global is due to begin this month.
An online and WeChat marketing campaign will be run alongside physical retail sales initiatives to allow YuShop and MGC to fine-tune the messaging and marketing strategy ahead of the planned roll out across the rest of China in July.
Managing Director Roby Zomer said: “We continue to make excellent progress across the company as we implement our commercialisation strategy and increase sales of our cannabinoid-based products.”
“The order of the first bulk of cosmetics raw materials and Aquiol … to CannaGlobal under the 5-year supply agreement, is testament to the on-going relationship between the companies, and quality of the products we are able to provide for the growth, and diversified, revenue profile of MGC Pharma.”
“This, in tandem with our increasing sales under the product supply agreement with Mabsut Life, demonstrates that our portfolio of saleable proven products is a key differentiator for our company.”
NB: This article is for general financial markets news purposes only and is not to be taken as an endorsement of, or advertisement for any individual product, medicine or drug.
