- Cannabis product developer MGC Pharma is making consistent waves in the wellness market, satisfying the first stage in a 5-year supply order for a whopping AU$700,000
- The company is developing four exclusive cannabis strains for vaporiser manufacturers Mabsut Life, on top of recently receiving $173,000 from orders earlier this year
- MGC is on the cusp of making huge profits in the Chinese market, pending a beta-test trial in-store and online through e-commerce giant
European cannabis-focused company MGC Pharma has announced today highly positive revenue and supply partnership results.
The company, which supplies medicinal cannabis supply demands across Europe, North America and Australasia, just recieved an A$700,000 bulk product order.
The order of cosmetic raw materials is part of a 5-year supply agreement with Canadian company CannaGlobal, manufacturing in Switzerland.
As part of the purchase order, MGC has already received $259,000 from the agreement with more money to roll in.
Managing Director Roby Zomer says achieving the first bulk order with CannaGlobal is a testament to an ongoing relationship and product quality.
“We continue to make excellent progress across the Company as we implement our commercialisation strategy and increase sales of our cannabinoid-based products,” he said.
The company has an ongoing supply agreement with cannabis ‘vape-pen’ manufacturers Mabsut Life. Due to product orders earlier this year, MGC just received $173,000 from the partnership, with ongoing revenue expected.
“[The CannaGlobal deal], in tandem with our increasing sales under the product supply agreement with Mabsut Life, demonstrates that our portfolio of saleable proven products is a key differentiator for our Company,” said Zomer.
MGC is also currently developing four new cannabis strains for exclusive use in Mabsut’s ‘PhenoPen’ vaporiser product.
These satisfying sales also come alongside a recent massive Chinese market deal. MGC Pharma signed with e-commerce import platform YuShop Global to sell its cannabis oil and hemp Nutraceuticals products to Chinese consumers.
YuShop currently has a retail channel network of over 1,500 partners. The sale of MGC products through YuShop are still pending a 28-day beta test for online and in 20 retails locations across four major Chinese cities, scheduled for this month.
The company expects its products to arrive the Chinese consumer in the coming week online and in store. A WeChat marketing campaign is also planned.
The beta test will indicate to the company a revenue forecast and provide the foundation for a widespread China release in July.
Shares in MXC are trading for 5.5 cents a piece, representing a 5.77 per cent premium from the last closing price. The company’s market cap currently sits at $63.06 million.