Memery Crystal advises on first ever cannabis IPO on LSE Main Market

MGC Pharma is a European-based bio-pharma company specialising in the production and development of phytocannabinoid-derived medicines. As part of the listing process, the company intends to raise gross proceeds of approximately £6.5m via institutional and other sophisticated investors in the UK.

This listing follows the ruling in September 2020 by the UK’s Financial Conduct Authority (FCA) to allow medicinal cannabis companies to list on the Main Market

Nick Davis, CEO of Memery Crystal, has been at the vanguard of regulatory development for the industry for a number of years, and was instrumental in the working with the regulators to open up the London market not just for the benefit of the medicinal cannabis companies themselves, but also for patients.

Throughout 2020, MGC Pharma had revenues of AU$2.1m, delivering major revenue growth from 2019, with a continuing upwards trend for 2021.

The dual LSE and ASX listing will significantly broaden MGC Pharma’s international profile and specifically provide direct access to UK and European institutional investors which aligns with the company’s established and future European operations.

As one of the leading advisors on dual-listings, Memery Crystal are one of the industry leaders within the medicinal cannabis space, advising the sector on business set up, capital markets, mergers and acquisitions, private fundraising, licensing and commercial contracts. The team produced The Green Report in September 2018 to aid conversation in the emerging UK medicinal cannabis investment landscape.

The Memery Crystal team was led by Nick Davis, supported by Mark O’Donnell (director), Lauren Belmonte (solicitor) and Priya Morzeria (paralegal).

Nick said:

“Medicinal cannabis is one of the world’s fastest growing and most innovative industrial sectors, and we are really pleased to be at the forefront of this new area. It has been an exciting journey assisting MGC Pharma as its trusted partner in the UK as it looks to access to vast new pools of capital that listing in London has to offer.

“This listing is a significant step forward for the industry, adding to the legitimacy of the cannabis market in the UK as it continues to develop into the mainstream. The combination of our experience with dual-listings alongside that of our knowledge in the medicinal cannabis space enabled us to provide the very best advisory offering. We look forward to seeing the benefits this listing will bring to MGC Pharma and working with our other cannabis clients to assist them to list them in the UK.”  

Roby Zomer, Co-founder and Managing Director of MGC Pharmaceuticals, commented:

“In Memery Crystal, we found a like-minded, highly experienced team who not only provided excellent legal and commercial advice and helped us navigate the complexities of listing with relative ease, but also understood the wider social and medical implications of bringing MGC Pharmaceuticals to market in the UK.

Our listing is the culmination of the last six years of hard work, positioning MGC Pharma as a leader in the emerging phytocannabinoid pharmaceutical sector. Admission will reflect our European-based research operations, as well as enabling the Company to engage with investors in the UK, Europe, Africa and the Middle East.”

Medicinal cannabis is one of the world’s fastest-growing and most innovative industrial sectors. Led by CEO Nick Davis, Memery Crystal’s medicinal cannabis team are sector leaders within the UK, advising businesses on a broad range of issues. The practice includes business set-up, capital markets, mergers & acquisitions, private fundraising, licensing, and commercial contracts.