Whilst most medical Marijuana companies are still trying to work out how to monetize their businesses, Perth based MGC Pharmaceuticals are busy locking down international distribution deals with real revenue flows for their unique, Cannabis based skin care line, MGC Derma.
The company announced last week it had secured its first major sales order for its cannabidiol-based products from the Czech Republic worth AUD$65,000.
The order was from Czech Medical Herbs, with whom MGC has an exclusive distribution deal for its products in the Czech Republic. Czech Medical Herbs is a specialist company in the field of cannabis for medical uses in the central European nation.
MGC’s agreement with CMH is worth about AU$500,000 in sales per year and will see MGC’s line of Cannabis cosmetics products stocked in more than 80 retail outlets in the Czech Republic.
In the update to shareholders recently, MGC said the deal represented its second revenue stream, with the first being from its exclusive distribution deal in California. Both deals are part of MGC’s push into the rapidly expanding legal Cannabis market after Israeli executives formed the company in 2015.
MGC co-founder and managing director Nativ Segev said: “Receiving our first material European revenues from the Czech Republic is a significant milestone for our compnay as it represents that we have already kicked off sales in a second market, complementing our Californian operations.”
“Currently we are in discussions with numerous other distribution partners across the USA, Europe and Canada and we look forward to updating the market upon the execution of any distribution agreements.”
The company’s range of products, which are based on a non-psychoactive component of Cannabis, target conditions such as acne, psoriasis and seborrhoea. MGC is looking to market the line to consumers via its MGC Derma online shop and selected retail outlets as over the counter products.
The recent announcement represents further positive news after the company last month said it was on the verge of official approval to sell its skincare range in the European Union.
MGC is a one of a kind when it comes to medicinal marijuana companies in that it has both a traditional medical research program and a Cannabis based cosmetic arm, with the latter furnishing funding for the former.
The company has previously said that it is in a strong cash position of around $6.2 million as at 30 September 2016 and was fully funded to execute its growth objectives into 2017.
