Shares of MGC Pharmaceuticals saw a decline of 9.5% in London following the company’s announcement that it is pursuing shareholder approval for a restructuring plan. This plan aims to secure long-term financing and empower the company to achieve important milestones, ultimately rejuvenating its value in the market.
This London and Australia-listed biopharma company revealed on Tuesday that the proposed plan will reduce its reliance on continuous capital raising and enable the completion of an 18-month work plan. By implementing this financial and capital restructuring, MGC Pharmaceuticals seeks to enhance its attractiveness for institutional support, while allowing its management team to prioritize crucial milestones.
Roby Zomer, the Managing Director, stated in a letter to shareholders that this repositioning of the company will bring about greater stability and provide the necessary focus to deliver key achievements. Some of these milestones include submitting their first Investigational New Drug (IND) application to the FDA, boosting sales figures, and successfully completing their clinical programs.
Shareholders are invited to attend the meeting scheduled for Oct. 25.
At 0702 GMT, shares were down 0.01 pence, reaching 0.10 pence in value.