Cannabis player lifts raising

Medical cannabis hopeful MGC Pharmaceuticals has upped its capital raising to $5 million after its initial $3.5 million raising closed oversubscribed.

The first batch of the raising was about 80 million shares at 4.4 cents each, and then resolved to issue a further 34 million shares to strategic institutions because of the over subscription.

Existing shareholders will be able to take part in a priority right offer on the same terms to raise up to $2 million.

The company will use the funds to complete a growing facility and extraction laboratory in Slovenia.

Other uses will include a Czech genetics research operations and a cosmetics roll out of around 50 products.

MGC managing director Nativ Segev said the company was delighted to receive support from new and existing shareholders.

“MGC Pharmaceuticals continues to make excellent operational progress in Europe and is well positioned to become a leading player in the Australian medical cannabis industry,” he said.

“This capital raise will allow us to continue to create shareholder value in the exciting and fast changing medical cannabis industry.”

There are at least six other cannabis companies with a connection to Western Australia, either through listing or attempting to list in the state.

In August last year, International Goldfields attempted a reverse takeover of Winter Garden Biosciences, although Winter Garden has recently sought to terminate the agreement after alleged breaches.

Odin Energy attempted a takeover of Hemp Resources last year, but terminated the agreement in August.

MMJ Phytotech listed in January last year, although the Nedlands-based company has had a soft run so far.

Gleneagle Gold is proceeding with its acquisition of Perth-based Zelda Therapeutics, while Capital Mining attempted a deal with US Nutrawerx that fell through.

AusCann Group Holdings, led by former Liberal MP Mal Washer is attempting a backdoor listing through TW Holdings.