The MGC Pharmaceuticals Ltd (LON: MXC) share price barely moved after announcing that it had implemented some further cost reductions in a bid to rein in its expenses as it reaffirmed its position as a European-based life sciences pharmaceutical company.
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The company revealed that its board of directors had agreed to an immediate ~35% reduction in director fees, effective from 1 December 2022. Furthermore, the key executive officer team (i.e. non-directors) of the Company have also agreed to a 10-20% reduction in their cash remuneration.
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MGC Pharma also agreed to issue shares only to its key executive officers to compensate for their reduced cash salaries, with the company’s directors not getting the same privilege. The company’s board believes its approach is appropriate given the harsh economic conditions.
The board will reallocate the capital saved to other working capital purposes as it prioritises clinical trials and research programs in 2023.
MGC Pharma also announced that Mr Evan Hayes has resigned from his position as a non-executive director of the Company, effective 1st January 2023. The move is part of the firm’s transition to a dedicated life sciences pharmaceutical company.
The company’s board now has five members, and it will continue evaluating its composition to see if it reflects its position as a European-based life sciences pharmaceutical company.
MGC Pharma is still conducting a strategic review of its business and operations, and I would not be surprised to see the firm announce more changes in future.
*This is not investment advice.
MGC Pharmaceuticals (MXC) share price.
The MGC Pharma (MXC) share price barely moved after the cost-cutting news and board change.
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