MGC Pharma (ASX: MXC) recently provided an update on non-pharmaceutical operations, reporting revenues reaching over AUD 850,000.
Last year, MGC Pharma sold their Derma subsidiary to CannaGlobal in exchange for cash, equity and a five-year supply agreement. This recent announcement by MGC Pharma indicates that the first round of payments under the supply agreement are coming in, with around $250,000 received from a $700,000 purchase order.
Also last year, MGC signed a supply agreement with Mabsut, a European medicinal products distributor, securing an additional $1 million in annual sales, of which over $170,000 was received in Q1 of 2019.
Lastly, the recently announced nutraceutical supply agreement to China with YuShop Global is advancing with a Beta test in 4 major Chinese cities, allowing the company to fine-tune their marketing strategy before launching country-wide in July.
All these revenues provide MGC Pharma a strong underlining financial position with secured regular payments, allowing the company to focus on developing their Pharma operations.