MGC Pharma share price lifts on botanical update

A botanical update from cannabis producer MGC Pharmaceuticals Ltd (ASX:MXC) has seen its share price respond favourably today as the company posted solid results from its 2018 harvest.

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Cannabis producer MGC Pharmaceuticals Ltd (ASX: MXC) has released a 'Botanical Update' to the market this morning in which it provided information about its 2018 crop and new strain development. The MGC share price is up 5% at the time of writing.

A summary of the announcement is provided below:

  • The 2018 crop, cultivated in Czech Republic, yielded 700kg of biomass and 30% more flowers than the 2017 crop.
  • The crop is awaiting transportation to MGC's extraction facility in Slovenia. The company recently received a full extraction permit issued by the Slovenian Ministry of Health, allowing it to develop phytocannabinoids for its medicinal products.
  • Cultivation operations are on track to be moved during 2019 from Czech Republic to MGC's larger scale Malta facility currently in development.
  • MGC's research team has developed a new strain called MXC-10, offering the highest levels of THC (>35%) of all MGC strains.
  • The company has started the Europe registration process for four new strains.

Despite today's performance, the MGC Pharma has been on a losing streak over the past year, down 65% from its 52-week high of 12¢. MGC isn't alone in this regard, with many ASX cannabis stocks like Auscann Group Holdings Ltd (ASX: AC8), Althea Group Holdings Ltd (ASX: AGH), Botanix Pharmaceuticals Ltd (ASX: BOT) and Cann Group Ltd (ASX: CAN) having seen their valuations trimmed down over the last year.

Motley Fool contributor Cale Kalinowski 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 Scott Phillips.

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