MGC Pharmaceuticals have done what few other medical cannabis companies have managed to do – make money.The company received first revenues from its “MGC Derma” medical cannabis based line of anti-ageing cosmetics this week from their Californian distributor who has committed to buy 1.2m Euro's worth of product in the first year.
MGC Pharmaceuticals have done what few other medical cannabis companies have managed to do – make money.
The company received first revenues from its “MGC Derma” medical cannabis based line of anti-ageing cosmetics this week.
The Perth headquartered company with growing and research operations in Slovenia and The Czech Republic received an initial deposit of 30,000 Euro’s (AUD$45,000) for its first product order out of the US during the week.
The initial order, from recently appointed Californian distributor C&M CBD Holding LLC, is for 300,000 Euro’s (AUD$450,000) worth of cannabis based anti ageing products including Moisturizing Day Cream SPF 30, Active Firming Anti Aging Mask, Active Bright Facial Cream, Anti Puffiness and Dark Circles Eye Serum.
The initial order is for 60,000 product units.
In total C&M have committed to purchase 1.2m Euros worth of MGC Pharma’s cannabis cosmetics in the first year for distribution in California.
MGC Pharma are also negotiating with potential distributors in other US states and point to the 1.2m Euro order commitment from California as an example of their revenue potential from just one US state.
The company says it is also negotiating distribution deals in Canada and potentially an additional distribution agreement in Europe after recently appointing Czech Medical Herbs as a distributor there.
Nativ Segev, Co-founder and Managing Director of MGC Pharmaceuticals said “We are pleased to announce today that we have received the first revenues from our US operations, demonstrating the commercial potential of our MGC Derma CBD cosmetic range and we look forward to continuing to update the market as we continue to receive revenue from our US operations.”
MGC Pharma are somewhat unique in the medical cannabis industry as they are pursuing two business streams which include cannabis based cosmetics and cannabis based medical research with the former providing an income stream to fund the latter.