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MGC Pharmaceuticals extends deadline for sale of cannabis cosmetics unit

MGC Pharmaceuticals Ltd. extended the completion date for its sale of MGC Derma to Oct. 31.

The extension provides time to complete the definitive agreements, contracts and other conditions related to the acquisition.

MGC Derma is the Australia-based cannabis company's cosmetics business, which Canadian investment company Cannaglobal agreed to acquire for C$12.5 million in its equity. Cannaglobal also agreed to repay a C$2.5 million loan to MGC Pharmaceuticals.

Additionally, the deal includes an exclusive five-year supply agreement under which MGC Pharmaceuticals will provide cannabidiol, proprietary production intellectual property and cosmetic materials to Cannaglobal for the production of MGC Derma products.

The supply agreement includes a C$1 million down payment for the first order, the first installment of which Cannaglobal has paid.