MGC Pharmaceuticals Ltd (LON: MXC) has become the first cannabis-related company to gain a Main Market listing following the clarification of the rules last year. The shares got off to a strong start.
The Australia-based biopharma company was already trading on ASX, following a reverse takeover in 2016, prior to the standard listing. One-fifth of the enlarged share capital was issued in the placing, which raised £6.5m at 1.475p a share. The costs of the flotation were £500,000. The market capitalisation was £32.9m.
In the year to June 2020, revenues were A$2.08m, while the loss was A$18.8m. Admittedly, there was a write-off of A$5.1m and a fair value loss on financial instruments of A$2.1m. Even so, gross profit was A$175,000 which barely covers any operating expenses.