MGC seeks approval for cannabis cosmetics

MGC Pharmaceuticals hopes to be able to sell its cannabidiol-based cosmetics in Australia soon.

Medicinal and cosmetic cannabis company MGC Pharmaceuticals hopes to start selling its cannabis-based cosmetics in Australia within two to three months.

While the company awaits regulatory approval in Australia, it has signed a distribution agreement in the Czech Republic and is pursuing distribution agreements for cosmetic products in Poland, Germany, France and the United States.

But MGC managing director Nativ Segev says MGC's main goal in Australia and elsewhere is to grow medicinal cannabis and sell an extract from cannabidiol - a non-psychoactive compound - for medical use.

The company has identified epilepsy, cancer and Alzheimer's disease as possible areas for use of cannabidiol.

Mr Segev says selling cannibidiol-based cosmetics is a revenue-generator while the company pursues its aspirations in the medical field.

Mr Segev says MGC has applied to Australia's Therapeutic Goods Administration (TGA) for approval to sell cannibidiol-based cosmetics here, and also to the US regulator.

"We have applied to the TGA. They have to approve all the claims behind it (the products), all the ingredients behind it," Mr Segev said on Thursday.

"I expect it will take two to three months to see if we get the approval."

MGC recently won approval from the European Commission to sell some of its cosmetics products in the European Union.

MGC's initial cannabidiol products include a sun-protective moisturiser, anti-ageing mask, facial cream and eye serum.

Mr Segev said the medicinal cannabis sector was still in its infancy in Australia.

MGC was still waiting to see how governments in Australia would regulate the growing of medicinal cannabis or if they would allow the importation of cannabidiol extract for use in clinical trials.

Mr Segev also said it was important that the medical profession, research institutions and universities became more knowledgeable of the potential use of medicinal cannabis.

MGC on Thursday completed a $5 million placement to professional and sophisticated investors of about 113.6 million shares at 4.4 cents each.

Also, the company is proceeding with a share offer to all MGC shareholders, seeking to raise up to $2 million through the issue of about 45.5 million shares at 4.4 cents each.

MGC intends to use some of the funds to construct a cannabis growing facility in Slovenia, and fund genetics and breeding research by its subsidiary Panax Pharma, which is based in the Czech Republic.

Funds will also be used to develop MGC's strategy for Australia.

MGC wants to grow medicinal cannabis in Australia, extend its medicinal cannabis clinical trial program to include Australia, pursue research opportunities with universities, and sell its cosmetic products in Australia.

Shares in MGC were 0.3 cents lower at 4.5 cents on Thursday.


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3 min read
Published 13 May 2016 7:46am
Source: AAP


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