MGC Pharmaceuticals (LON: MXC) shares are rising Monday after it confirmed it has received the full U$750,000 from AMC Holdings.
The money was paid under the terms of the 3-year $24M US Supply and Distribution Agreement with AMC, with the $750k a prepayment on the first order placed under the first year $3m purchase order of CimetrA, announced in October.
AMC will pay the remaining $2.25m through a cash payment or secured trade credit facility after receiving the first CimetrA shipment. The $3m purchase order is the first-year minimum amount under the agreement.
US distribution and marketing firm AMC has engaged a law firm to seek FDA approval for CimetrA.
MGC Pharma Managing Director and CEO, Roby Zomer told investors that: “The agreement also provides us with a clinical platform for further research and development of MGC Pharma's products that will enable US patients to have access to our products imminently.
“This is an exciting partnership in the US, with a highly credentialed group, for MGC Pharma and its investors, as we look to take CimetrA™ through the regulatory approval processes in both the USA and India, two of the largest pharmaceutical markets in the world.”
So far on Monday, MGC shares are up 1.21% at 2.51p.
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