MGC Pharmaceuticals
Ltd
Refinancing of Convertible
Securities Agreement
28 March
2024
ASX, LSE:
MXC
MGC
Pharmaceuticals Ltd ('MGC Pharma' or
'the Company') wishes to
advise that it has executed a Deed of Variation with Mercer Street
Global Opportunity Fund, LLC (Mercer) in respect of the convertible
securities agreement entered into between the Company and Mercer in
2020. This includes the refinancing of 500,000 convertible notes
from the 2020 convertible note facility (Notes) which totals $2,100,000. A
commercial agreement has been reached by which the minimum
conversion price of the Notes has been reduced from not less than
$10.00 to not less than $0.35. Further details in respect of the
variation to the Notes are set out below.
Variation to 2020 Convertible
Securities Agreement
As announced on 10 September 2020,
the Company entered into an agreement with Mercer (2020 Agreement), whereby Mercer
conditionally agreed to provide the Company with up to $15 million
in funding, via subscriptions for convertible notes in the Company
with a face value of AUD$1.00 each.
As at the date of this announcement
2,100,000 convertible notes pursuant to the terms of the 2020
Agreement remain on issue.
The Company and Mercer have agreed
to amend the minimum conversion price of 500,000 Notes under the
2020 Agreement (which had amendments approved at a meeting of
Shareholders[1])
from "not less than $10.00" (post consolidation) to "not less than
$0.35" (post consolidation). The issue of any conversion shares as
a result of the amendment of the minimum conversion price will be
made under the Company's existing placement capacity under Listing
Rule 7.1.
The Company intends to reach
additional agreements with Mercer to amend the terms of the
remaining 2020 convertible note facility and the 2022 convertible
note facility[2].
-Ends-
Authorised for release by the Managing Director, for further
information please contact:
About MGC Pharma
MGC Pharmaceuticals Ltd (LSE: MXC,
ASX: MXC) is a prominent European pharmaceutical company with a
strong commitment to creating accessible and ethically produced
cutting-edge medicines. Our approach combines in-house research
with innovative technologies, all aimed at discovering and
producing treatments for currently unmet medical
conditions.
The company's founders and
executives are distinguished figures in the global pharmaceutical
industry. Our central business strategy revolves around the
development and supply of innovative medicines, responding to the
increasing demand in the medical markets of Europe, North America,
and Australasia.
MGC Pharma maintains a robust
development pipeline that addresses two prevalent medical
conditions, with additional products currently in the developmental
stages. We've established strategic partnerships with renowned
institutions and academia, fostering the optimization of our
medicines' development. These medicines are produced in our EU-GMP
Certified manufacturing facilities, ensuring the highest quality
standards.
With a growing patient base in key
regions like the USA, UK, Australia, and Ireland, MGC Pharma has
also built a global distribution network through a wide-reaching
group of commercial partners. This extensive network places us in a
prime position to supply the global market effectively.
Follow us through our social media
channels:
LinkedIn: MGC Pharmaceuticals
Ltd.
Twitter: @MGC_Pharma
Facebook:
@mgcpharmaceuticals
Instagram: @mgc_pharma