$MXC - MGC PHARMA - At very strong support level.

$MXC - MGC PHARMA - At very strong support level.

Has a reputation for a pump and dump type stock, but that might be okay as its at the bottom of the pump area. Rising volume will be your friend here so keep an eye on the OBV. Id like to see RSI cross upwards through 50 to confirm interest. Has some very good market depth on the buy side so cant see it retracing too far. Id jam a stop a few pips down if I was going to trade it and let it run. Well worth a watch I think.

MGC Pharmaceuticals Limited, formerly Erin Resources Limited, is a medical and cosmetics cannabis company. The Company is engaged in the creating cannabidiol (CBD) and medical cannabis business that focuses on the CBD market in Europe. CBD is used for the treatment of a range of skin and health conditions, including acne, psoriasis, eczema and dry skin. The Company's business model involves in growing cannabis sativa plants from high CBD yielding seeds and extracting CBD resin from the plants grown. It sells the CBD resins as a wholesale product to cosmetic and therapeutic product manufacturers. The CBD is also used to produce the Company's line of cosmetic products in Slovenia under the Ananda Cosmetics Joint Venture. It grows, harvests, dries out, extracts and sells cannabis sativa crop to enterprise customers in bulk, individual consumers in delivery devices or other products. The Company subsidiaries include MGC Pharma (UK) Ltd and MGC Pharmaceuticals d.o.o.

Comment:

Got a big bump on news of China distribution deal on the back of UK approval and orders

MXC Receives CannEpilTM Import Permit for United Kingdom, Initial Purchase Orders received in both UK and Australia

• United Kingdom Controlled Drug Import Licence received for the importation of CannEpilTM into the UK via MXC’s distribution partner, Lenis

• MXC confirms it has received its first formal purchase orders for CannEpilTM in Australia and the United Kingdom through licensed distribution partners

• Delivery of first products to fulfil these initial purchase orders scheduled for April

• Initial purchase orders received to date including both CannEpilTM and CogniCannTM equate to more than A$200,000 in total revenues for MXC

• MXC is in advanced negotiations with Australian and UK licensed distribution partners, with formal binding distribution agreements expected to be signed in the next few weeks

• Upon execution, these new distribution agreements will significantly expand distribution for CannEpilTM and additional MXC Investigational Medicinal Products (IMPs) including CogniCannTM in the United Kingdom and Australia

Agreement signed to market and distribute MGC Nutraceuticals CBD based products into Chinese health products market

• Marketing and Distribution agreement signed with Chinese e-commerce import platform YuShop Global (YuShop), to sell the Company’s CBD and hemp-enhanced Nutraceuticals product range in China

• MGC Pharma’s nutraceutical product line includes CBD Hemp Protein Powder, BCAA CBD capsules, CBD Water Soluble Solution and CBD Herbal V-Pen

• Products contain high-grade phytocannabinoids which have been grown, extracted and processed under MGC Pharma’s strict quality control guidelines and standards and formulated alongside natural vegan proteins and vitamins

• Targeting Chinese consumers via YuShop’s online platform and network of 1,500 retail channel partners, including a luxury spa chain

• YuShop to provide a complete “turn-key” solution to MGC Pharma, being responsible for all sales, marketing, logistics and customer service within China

• Eight-week market test campaign already underway, with a fullscale marketing and sales campaign scheduled to be launched in June 2019

• Large Target Market – providing a platform to enter the existing market over 350 million middle-class Chinese vitamin and supplements consumers, who are expected to purchase over US$20 billion of Vitamins and Supplements in 2020

• MGC Nutraceuticals recently launched its new e-commerce website www.mgcnutraceuticals.com/