Why the MGC Pharma (ASX:MXC) share price is smoking the market today

The MGC Pharmaceuticals Ltd (ASX:MXC) share price is smoking the market on Wednesday after releasing an update on its UK operations…

| More on:
cannabis leaves on a rising line graph representing growth of ASX cannabis share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The MGC Pharmaceuticals Ltd (ASX: MXC) share price has been smoking the market on Wednesday.

In afternoon trade the medicinal cannabis company's shares are up 8% to 3.9 cents.

This latest gain means the MGC Pharma share price is now up almost 63% since the start of 2021.

Why is the MGC Pharma share price smoking the market today?

Investors have been buying MGC Pharma's shares today following an update on its listing in the United Kingdom.

According to the release, the company's shares were admitted to the standard sector of the London Stock Exchange (LSE) on Tuesday.

This admission follows the completion of a successful capital raise of 6.5 million pounds through an oversubscribed placement to UK based institutional funds, high net worth family offices, and professional investors.

This made MGC Pharma the first cannabis-sector company to IPO on the main market of the LSE in the United Kingdom.

Management advised that the net proceeds of the capital raise will be used to meet the costs associated with its priority clinical trials including ArtemiC and CannEpil. It will also be used to increase the distribution of its product range, general working capital, and the completion of its manufacturing facilities in Malta.

"Significant moment"

MGC Pharma's Chief Executive and Managing Director, Roby Zomer, believes this is a significant moment for the company.

He said: "The LSE listing is a hugely significant moment for MGC Pharma, our admission to LSE follows the successful capital raising of £6.5 million which will be used to immediately commence the priority clinical research trials of our leading products, expand our distribution network into key sales markets, as well as advance the construction of our manufacturing facilities in Malta."

"We are proud to make history as the first medical cannabis company on this historic Exchange. I would like to thank the MGC Pharma team and the advisors for all their hard work to make this happen. We look forward to updating our new and existing shareholders as we progress this programme," he added.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Industrials Shares

Up 39% in a year, is there more growth to come for this ASX 200 share?

IML Equity Analyst Josh Freiman shares his views on a major ASX 200 industrial stock.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Catapult, Flight Centre, Nufarm, and Xero shares are storming higher today

These shares are having a strong session on Thursday. But why? Let's find out.

Read more »

drug capsule opening up to reveal dollar signs signifying rising asx share price
Healthcare Shares

3 ASX healthcare shares going gangbusters on Thursday

Investors are sending these ASX healthcare stocks soaring today. But why?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 made it three-for-three losses in a row this Wednesday.

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Brickworks, James Hardie, Megaport, and OFX shares are charging higher today

These shares are having a good time on hump day. But why?

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors endured another day of selling this Tuesday.

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Guess which ASX 300 tech stock is already up 64% in November!

The ASX 300 tech stock is surging higher this month. But why?

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why ANZ, Block, Neuren, and Pilbara Minerals shares are pushing higher today

These shares are having a solid session on Tuesday. But why? Let's find out.

Read more »