MGC Pharmaceuticals (ASX: MXC) is establishing a key gateway into the potentially lucrative European cannabis market with the construction of a new production facility in Malta.
The Australian company has signed a long-term lease agreement on the 6,000sqm site in Malta with Malta Industrial Parks.
The company says this major event is a milestone for the Maltese medicinal cannabis industry as MCG's facility will be one of the first commercial EU-GMP grade and research facilities in the country.
For MGC the advantage of setting up in Malta appears to be as a gateway into the European Union.
The large-scale facility is proposed to be a 15,000sqm multi-storey building for the operation of the group's bio-pharma business, with a production capacity of over 8,000 units per hour of each product.
In addition to the construction of the facility, MGC has commenced the process of GMP certification of its cannabinoid derived medicines commercial operations at the Maltese facility.
Roby Zomer, co-founder and managing director of MGC Pharma, says the establishment of a production facility will greatly improve the group's efforts to target the EU.
"This is a transformational event for MGC Pharma," says Zomer.
"Providing a gateway to key European and global markets, the Maltese facility, when constructed, will be our centralised European production and distribution hub. This will be integral as we advance our strategy of becoming a leading European focused producer of cannabinoid derived medicinal products. The Maltese facility will significantly scale up our existing operations and commercial activities currently based in Slovenia and the Czech Republic."
"The state-of-the-art Maltese facility is to be a key asset for MGC Pharma to provide a platform for future product development and commercial growth, with large-scale production driving strong future revenues upon completion."
Shares in MGC are up four per cent to $0.05 per share at 10.38am AEST.
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