MGC Pharmaceuticals (ASX:MXC) has completed the acquisition of Czech-based medical cannabis firm PANAX Pharma s.r.o. (Panax) for a still undisclosed amount.
The Australian Securities Exchange-listed firm announced that pursuant to its announcement dated 15 December 2016, it has settled on the binding heads of agreement to acquire up to 100% equity in Czech-based company.
Completion follows the recent finalisation of independent legal due diligence on the Panax acquisition, operation of the business in the Czech Republic, together with finalisation of the formal research agreement with the IEB AS.
Panax and MGC Pharmaceuticals’ executive team will now collaborate to develop a
medical cannabis genetics and breeding research program.
MGC Pharmaceuticals will immediately commence research operations at the IEB AS and its growing facilities in Prague following the IEB being granted its medical cannabis breeding license.
MGC To Conduct Medical Cannabis Breeding Research
This license immediately enables MGC Pharmaceuticals to conduct medical cannabis breeding research at the IEB AS’s laboratories and scale up to 1,000m2 of dedicated greenhouse growing space, with ability for further scale up.
At completion of acquisition, the following share transfers have taken place and the company now holds an 80% equity interest in Panax, with the right to increase this to 100%.
The Academy’s Institute of Experimental Botany will be responsible to drive the research progress and supervise the medicinal cannabis genetics and breeding operations.
MGC Pharmaceuticals is to provide its expertise and technical know-how to facilitate the successful outcomes of the research plan.
Panax Pharma s.r.o is a Czech Republic based medical cannabis company that has research access rights to the IEB AS facilities. The Academy of Botanical Sciences is a leading Czech research institute in plant biology, namely in plant genetics, physiology and biotechnology.
The acquisition of Panax and its strategic partnership with the IEB AS, together with the IEB’s recently granted medical cannabis breeding license, enables MGC Pharmaceuticals to immediately commence research operations at the IEB’s facility. –
“We are pleased to announce that our acquisition of Panax is complete. MGC Pharmaceuticals will now immediately commence its research operations at the world-class Institute of Experimental Botany of the Academy of Sciences of the Czech Republic. On behalf of the Company, I look forward to updating the market in due course with the results of our research operations,” said Nativ Segev, Co-founder and Managing Director, MGC Pharmaceuticals. – BusinessNewsAsia.com