MGC Pharmaceuticals has been awarded a contract by the government of Malta to construct a 4,000 m2 medical cannabis production and cultivation facility.
MXC is one of only five companies, and the only company from Australia, to be awarded a full medical cannabis production and cultivation contract, following a competitive tender process.
Under the agreement, the company will be permitted to produce all THC and CBD strains of medical cannabis, expanding the commercial opportunity for MXC to develop additional medical cannabis pharmaceutical products into key European and global markets, which derive benefits from THC in addition to CBD.
Cannabis produced at the facility will be used by MXC in the production of its GMP-grade pharmaceutical products for global markets including Australia, and will enable the supply of medical cannabis flowers directly into the emerging European markets, including Germany.
Securing this contract will complete the Board’s strategic plan to establish a fully vertically integrated medical cannabis ‘seed to sale’ operation in the European Union.
The company will be required to comply with all Maltese medical cannabis licences and permits to operate the facility, as required in the normal course of business for all medical cannabis operations globally, which are subject to final legislative changes, which once passed, will permit the cultivation, production and commercialisation of medical cannabis in Malta. Final review and discussion is currently taking place in Malta’s parliament on this legislation, with a final bill expected to be passed shortly. This follows the passing of an initial bill on 23 March 2018, which legalised cannabis for medical purposes.
Other material terms of the contract include the requirement for MXC to spend a minimum of approximately $6,500,000 (€4,300,000) over the first 3 year term on the construction and operations of the medical cannabis cultivation and production facility, and to employ a minimum of 25 Maltese people as part of the local workforce.
For more information:
MGC Pharma
[email protected]
mgcpharma.com.au
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