ASX-listed MGC Pharmaceuticals has boosted its presence in Europe, securing new sales orders for its “cannabidiol” based cosmetics products.
In a market update on Monday, MGC said that wholesale reseller agreements have been signed for its MGC Derma cosmetics line with retail outlets in Spain, Italy and Romania.
The company is expecting more EU orders to follow in quarter 2.
Perth-based MGC Pharma said the products that were the subject of the wholesale agreements comprised of its cannabis-based anti-ageing and essentials lines and would be available in stores and online in May.
MGC co-founder and managing director Nativ Segev said: “Our MGC Derma cosmetic brand continues to gain traction in Europe, with strong momentum in wholesale contracts in key initial countries helping us to access their 70 billion euros cosmetics market”
“We also continue to progress our discussions with potential distributors in the UK market as we focus on further expanding our reach in Europe.”
Unique among cannabis market players, MGC has both cosmetic and medicinal cannabis arms and views the reseller agreements both as expanding its offering in Europe and building on the success of its MGC Derma “eShip”, which already distributes products from the Czech Republic to Italy.
In the update, MGC also said it expected to sign further contracts in Australia, Canada and the US as legislation continues to open up key markets to cannabis-based products. The company said it was also in advanced discussions with potential distributors in the UK and other EU markets..
Monday’s announcement is the latest evidence of MGC’s bold foray into the burgeoning global market for cannabis-based products, following the company’s recent successful $10 million capital raising to pursue its growth objectives.
At the time, MGC said the funds would be used to further commercialise its skin care and medical cannabis lines aimed at the Europe, US and Australian markets.
In related developments, MGC confirmed last month that high quality cannabinoid, the primary psychoactive compound found in cannabis, had been successfully produced at its new marijuana extraction facility in Slovenia.
By Matt Birney
