MGC Pharmaceuticals Ltd (ASX:MXC) (OTCMKTS:MGCLF) (FRA:H5O) is completing a drawdown under a convertible securities financing agreement with United States-based investment fund Mercer Street Global Opportunity Fund LLC.
The drawdown will provide the company with funding of A$3.5 million, which has already been approved by shareholders at the Annual General Meeting on November 4.
This will be provided through the issue of 3.85 million convertible notes with a face value of A$1 each to Mercer Street, with the convertible notes issued through a prospectus.
Australian telehealth platform
MGC Pharma recently acquired Australian telehealth medicinal cannabis clinic Medicinal Cannabis Clinics (MCC), a wholly-owned subsidiary of Cannvalate Pty Ltd.
MCC was established in 2019 and has an extensive doctor and patient network that enables eligible patients to access high-quality and affordable medicinal cannabis products.
Since incorporation, MCC has facilitated more than 4,000 medical consultations with pre-screened eligible patients and has shown continued month-on-month growth.
The clinic utilises video telemedicine, allowing its doctors to prescribe the range of cannabinoid medications available in Australia.
This transaction provides MGC Pharma with turnkey access to over 600 pharmacy accounts and patients can also leverage on existing seamless delivery infrastructure so medication can be dispensed and delivered straight to the patient’s door.