Why pot stock MGC Pharmaceuticals surged higher today

The market may have dropped lower this morning, but that hasn’t stopped the MGC Pharmaceuticals Ltd (ASX: MXC) share price from pushing notably higher.

At one stage the cannabis company’s shares were up 19% at an all-time high of 12.5 cents before fading slightly. At the time of writing its shares are 9.5% higher to 11.5 cents.

Why are MGC Pharmaceuticals’ shares surging higher today?

This morning MGC Pharmaceuticals made an announcement relating to its European medicinal cannabis manufacturing facility.

According to the release, the company has been formally granted interim Good Manufacturing Practice (GMP) certification for the facility.

The interim certification means the company can commence production of the first batch of its adult medical cannabis epilepsy product CannEpil.

Upon successful production of the first batch of CannEpil, the batch will undergo validation of manufacturing and analysis. After which, if the product meets the required protocols, management expects the facility will be granted full GMP certification.

This will then allow MXC Pharmaceuticals to commence full scale manufacture and be licensed for distribution of CannEpil and other pharmaceutical grade medicinal cannabis products.

What is CannEpil?

CannEpil is the company’s first pharmaceutical-grade medical cannabis product and is targeting drug-resistant epilepsy. Drug-resistant epilepsy, also known as refractory epilepsy, is a potentially lucrative market and accounts for approximately 30% of the estimated 240,000 people diagnosed with epilepsy in Australia each year.

Management estimates that the product will generate revenue of $1 million per annum from its first full year of distribution with specialist Australian pharmaceutical distributor HL Pharma.

Should you invest?

I’ve been impressed with MXC Pharmaceuticals over the last few months and believe it has shown a lot of promise. As well as this product, the company has signed a number of agreements in the cosmetic industry that have the potential to generate meaningful revenues.

While I’m not ready to invest, I think it will certainly be one to watch this year along with fellow pot stocks Auscann Group Holdings Ltd (ASX: AC8) and Creso Pharma Ltd (ASX: CPH).

Lastly, here are three more exciting shares that I think investors should be watching closely this year.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!