MGC banks $60m cannabis deal

There has been a flurry of pot deals on the ASX

The company attempting to backdoor list cannabis play MGC Pharmaceuticals this morning announced it had entered into a $60 million offtake deal with European cosmetics company Natura Laboratories.

Erin Resources shares bounced 0.3 cents to 2.2 cents on the news, which will see MGC supply the pharmaceutical for a minimum supply of 300kg of resin per year for a four-year minimum term.

It claimed it is the first first ASX-related cannabis or hemp company to sign a wholesale cannabis supply contract

The company, which plans to supply Cannabidoil (CBD) resin extract from its growing operation to be established in Slovenia, “pursuant to recent license approvals”. said it would accelerate its production to produce revenues the second or third quarter next year.

Erin announced its plan to take 100 per cent of MGC last month, and just one company in...

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