The MGC Pharmaceuticals (LON:MXC) share price comfortably topped share price risers on Thursday after announcing a landmark US deal.
MXC revealed that it has executed a binding $24m minimum supply and distribution agreement for product launches in the US with AMC holdings – a private US distribution and marketing company in the bio-pharma space.
The agreement will see MXC potentially receive minimum orders of $24m over a three year period for products that include CannEpil, CogniCann and CimetrA which brings the pharmaceutical phytocannabinoid products to the sizeable US market.
Following the announcement, the share price of MXC jumped from 2.10p to nearly 4p in very early trading and is currently up by over 50 percent.
The minimum order agreement is broken down as $3m for the first year, followed by $6m for the second year and $15m and is subject to AMC receiving a National Clinical Trial Number (NCTN)
A proviso was added that the deal could become void should AMC fail to receive the respective NCTN for at least one of the products by 30 September or failure to meet the minimum order value.
Commenting on the importance of the deal for MXC was Roby Zomer who added:
“This Agreement provides MGC Pharma with a pipeline for strong revenue streams over the next three years, with the possibility of larger revenues to follow, and the opportunity to be at the forefront of phytomedicines in the USA. Additionally, the ability to add new sites to our current clinical trials programmes for CannEpil and CogniCann will greatly enhance the ongoing process for both.”Roby Zomer, Managing Director of MGC Pharma
The share price of MXC is currently at 3.12p.