Australians MGC to sign medical cannabis agreements to start 4,000 sq.m facility in Malta

The Australian listed company MGC Pharmaceuticals has announced in a market update on Monday, that it is expecting final formal agreements from the Malta Medicines Authority to be signed in the coming weeks to kick off its production facility.

With final legislation passed by the Maltese Parliament legalising the production of cannabis for medical use in Malta, MGC said it had been allotted 4,000 square metres of land for its subsidiary MXC in Malta.

“Malta Enterprise, the government agency responsible for attracting Foreign Investment in Malta, has together with Malta Industrial Parks identified 4,000m2 of land for MXC. The planning has commenced for the construction of the MXC medical cannabis production and cultivation facility. Approval to immediately commence construction is expected to follow the receipt of MXC’s licence and final contracts from the Maltese authorities,” MGC said.

The company said Malta provided the ideal geographical location to serve the growing European market, as MXC under this contract will be able to produce all THC and CBD strains of pharmaceutical grade cannabis extract for medicinal purposes “due to a perfect climate with an average yearly temperature of 23 degrees Celcius”.

The medical cannabis market within the EU is expected to be worth $56bn by 2020 with large growth in areas such a Germany – where the market is currently worth an estimated $17.5bn and observes a lower wholesale price of raw materials (€3.50 per gram).

MGC’s MXC production facility will produce all THC and CBD strains of pharmaceutical grade cannabis extracts, for medicinal purposes. The company is required to comply with all Maltese medicinal cannabis licenses and permits to operate the facility.

Roby Zomer, Co-founder and Managing Director, MGC Pharmaceuticals commented: “I am pleased to inform you that the production of cannabis for medical use has now become legal and regulated under Maltese legislation and a plot of land within one of the Maltese industrial zones has been designated to us for our project. Once the licence by the Malta Medicines Authority is issued we will be able to commence work on the project in Malta.”

MGC is one of only a handful of companies – and the sole Australian company – to be awarded a full medical cannabis production and cultivation contract in Malta, following a competitive tender process there.

Other companies include Canada’s Nuuvera and Zenabis, the latter having partnered with a Maltese pharmaceutical retail chain.