MGC Pharma posts a $7m loss, but is optimistic about "substantial progress"

MGC Pharma posts a $7m loss, but is optimistic about "substantial progress"

Despite suffering losses during 1H18, MGC Pharma (ASX: MXC) is still on its mission to become one of the nation's top names in medical cannabis.

The Perth-based company reported a $7.19 million consolidated loss during the first half, an increased loss from 1H16 when the company reported a $3 million loss.

Despite this result, MGC Pharma says it is making "substantial progress" across its three major business divisions.

"The company continues to advance its vision of a pharmaceutical company with a fully self-contained value chain, spanning growing operations through to research and drug development," says MGC in a statement.

The company recently signed a strategic agreement with Royal Melbourne Institute of Technology to advance medicinal cannabis research, which it is calling a major milestone.

During the first half MGC Pharma completed its first harvest of raw material at its open field farm in Slovenia, delivering more than 4000 kg of biomass.

The biomass has since entered preparation at the company's facility in Slovenia where it will be turned into food-grade cannabis.

The company also completed a successful harvest at its Czech Republic glasshouse facility, delivering more than 400kg of biomass.

The group's dermatology division, MGC Derma, executed a number of key deals during the period.

In October 2017, MGC Derma signed a binding cosmetic sales agreement with emerging Korean health care and beauty cosmetics company, Varm Cosmo Inc.

Under the agreement, MGC is providing cannabis cosmetic products to Varm which are being sold to consumers as part of Varm's cosmetics range.

MGC also signed a strategic distribution agreement with online beauty store Cult Beauty during the half. A total of 15 MGC's products are now sold on Cult Beauty's worldwide site.

Shares in MGC Pharma are up 2 per cent to $0.098 per share at 11.22am AEDT.

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