The MGC Pharmaceuticals Ltd (ASX: MXC) share price rose 100% on Friday on the announcement it has signed a supply agreement with Korean cosmetics manufacturer, Varm Cosmo inc. for it's MGC Derma division to supply five of its canibidiol (CBD) cosmetic products in bulk form, to be sold to consumers as part of Varm Cosmo's cosmetics range.
MGC Pharmaceuticals Ltd is a medical and cosmetic cannabis company with global operations to supply the legalised markets with cannabis products. The current activities of the company include development of non-psychoactive cannabidol (CBD) cosmetic products.
The MGC Derma division is a 51:49 joint venture with well-credentialed cosmetic manufacturer, Dr. M. Burstein Ltd, of which MGC Pharmaceuticals owns 51% and holds management control.
With a minimum agreed purchase quantity of 15,000kg per month (3,000kg per stock keeping unit) the
expected deal will generate approximately $40 million in annual revenue for MGC Derma.
South Korea is in the top 10 beauty product markets in the world and is estimated to be worth over US$13 billion in 2017.
