ASX-listed MGC Pharmaceuticals says it has received positive results from its substantial cannabis planting and harvesting operations based in Europe.
MGC told the market this week that its growing program, based in the EU, had delivered “very good production results”, including over 4,000 kilograms of cannabis being harvested at its open field farm in Slovenia.
The significant amount of marijuana biomass will now be turned into food grade cannabis for the company’s nutrient and MGC Derma cosmetic line.
The encouraging production volume marks the culmination of a ramp up at MGC’s Slovenian operations this year, including an ongoing research collaboration with the country’s University of Ljubljana, as MGC solidifies itself as a major player in the global cannabis market.
Unlike many other companies in the burgeoning cannabis market, MGC has both a research program into medicinal uses for marijuana and cannabis-based cosmetic and dermatological lines targeted at the rapidly expanding worldwide demand for cannabis-derived beauty and therapeutical products.
In Friday’s update, MGC said its botanic division was also progressing well in the Czech Republic where more than 450 of its medicinal cannabis plants have entered the flowering phase ahead of harvesting.
The company said the growth and yields from the plants were better than expected for a first-time crop, with harvesting to start in the next two weeks.
MGC has a five-year deal with Panax Pharma in the Czech Republic that has enabled its crop to be grown at an 1,100m2 glasshouse in a state-of-the-art growing facility established by the Czech Ministry of the Environment.
Management said once harvested, the flowers would be processed into crystals of Cannabidiol for use in its cosmetic products and for clinical studies. The remaining biomass will be sold as Aquiol, which is a raw material rich in CBD.
The harvesting of the flowers will also allow the first stage of MGC's genetic research program to begin at the University of Ljubljana.
MGC Pharmaceuticals chief executive Roby Zomer said: “Our Botanic division is moving through its planting and harvesting on schedule and with very good production results.”
“We are pleased with the results that are starting to emerge from our facilities in Slovenia and the Czech Republic, and are excited to be starting the first phase of our genetics research program with the University of Ljubljana in Slovenia.”
“This also gives the company a great base to launch from for our next production cycles in Europe, and for our pharma operations to produce end use products for sale.”
As part of its collaboration with the University of Ljubljana, MGC has previously said it wants to engineer the seeds to possess high levels of CBD and THC, which can be used to fight a range of diseases, including epilepsy and chronic pain.