The share price of MGC Pharmaceuticals (LON: MXC) has continued its rapid ascent, adding another 50 percent in early trading today after a worldwide distribution agreement for the ArtemiC was sealed.
Dual-listed MXC (ASX, LSE) revealed that a master supply and distribution agreement had been signed with Swiss PharmaCan AG for ArtemiC. This includes both Rescue and Support variations.
ArtemiC is a food supplement that contains four natural ingredients (Artemisinin, Curcumin, Boswellia serrata, and Vitamin C). Clinical trials in December 2020 shown that ArtermiC Rescue had the ability to prevent deterioration of COVID-19 patients and reduce symptoms – a wider spectrum of potential indications are currently being considered due to its anti-inflammatory effect.
ArtemiC support is also another variation that is designed for consumption on a daily basis with a view to boosting immune systems.
How much is the deal worth? Over $40 million on an ACV and retail basis
Today’s deal with Swiss PharmaCan AG covers the distribution of ArtemiC rescue and ArtemiC support with focus on countries that show high numbers of COVID-19 cases.
It appears to be fairly substantial in size, the agreement includes a minimum wholesale order quantity of 40,000 units per quarter. An initial order of 10,000 has been received which equates to a market value of $850,000 USD.
So in essence, this has the ability to be a contract that’s worth at a minimum just under $41 million dollars on a yearly basis based on the retail value – clearly MXC will be receiving far less due to the wholesale and retail mark-up but the revenues should be fairly material.
Commenting on the worldwide distribution agreement with the medical cannabis company was Michel Fässler, CEO and Member of the Board of Swiss PharmaCan AG:
“We are very happy with the successful cooperation between MGC and Swiss PharmaCan AG. The potential of ArtemiC™ is unlimited and a viable, natural solution in the current crisis, offering to so many people possible help and alleviation of their suffering.”
The share price of MGC is currently trading at 7.40p and continues its strong run since listing in London a few days ago ( MGC share price continues to surge since LSE listing ).