Listed cannabis producer MGC Pharmaceuticals (ASX: MXC) has received approval to construct a state-of-the-art medical cannabis production and cultivation facility in Malta.
MGC is one of only five companies worldwide, and the only Australian company, to hold a cannabis production and cultivation contract in Malta.
At the new 4,000sqm facility, the company will produce all THC and CBD strains of medical cannabis.
The company expects this new contract will give the group an opportunity to develop new pharmaceutical products for export into key global markets.
Cannabis produced at the facility will be used by MGC in products for the Australian market, as well as emerging European markets.
Co-founder and CEO of MGC Pharmaceuticals, Ruby Zomer, says the new site gives the company a strong foothold in the European market.
"This contract provides MXC with an attractive new cultivation site in the European Union, completing the Board's strategy to operate a full vertically-integrated medical cannabis operation in Europe," says Zomer.
"This contract extends the medical cannabis market for MGC into the supply of medical cannabis flowers to emerging European markets, including Germany."
The construction of the new facility will be funded by the $5 million capital raising which MGC completed on Wednesday.
The placement was led by Bell Potter and received strong support from new and existing shareholders.
Following completion of the capital raising, the company is in a strong financial position with $12 million cash in hand.
"We're really pleased with the strong support of our new and existing shareholders and thankful for their support," says Zomer.
"The opportunity presented to us by the Maltese Government is truly exciting."
Shares in MGC are up 9.33 per cent to $0.08 per share at 11.08 am AEDT.
Business News Australia
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