MGC signs deal with e-cigarette maker

MGC Pharma will supply its cannabidiol extract to an electronic cigarettes maker, a deal forecast to drive $US1 million ($A1.4 million) in annual sales.

MGC Pharmaceuticals has struck a deal with European medical marijuana product maker Mabsut Life to supply its cannabis-based extract for use in electronic cigarettes.

Mabsut Life will use MGC's cannabidiol extract to develop an e-cigarette cartridge formula entirely based on cannabis ingredients, removing the need for any additional chemicals or solvents.

It will be used under Mabsut Life's own electronic cigarette brand, which is sold in central and eastern Europe, including Germany, the Czech Republic and Austria.

MGC said the two year deal will generate more than $US1 million ($A1.4 million) in annual sales for the company, and could lead to the supply of future cannabis extracts or other cannabis-based products to Mabsut Life.

Mabsut Life chief executive Moshe Wasserman said the agreement is just the first of a series of deals with the pharmaceuticals company.

Shares in MGC were 4.3 per cent higher at 9.8 cents 1345 AEDT.

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Published 22 November 2017 at 1:48pm
Source: AAP