MGC Derma signs AU$40 million deal to supply cannabidiol cosmetic products to Varm Cosmo

MGC Derma signs AU$40 million deal to supply cannabidiol cosmetic products to Varm Cosmo

Shares in MGC Pharmaceuticals reached a six-month high following an announcement on Friday that it has signed a deal to supply cannabidiol (CBD) cosmetic products to South Korea-based Varm Cosmo, according to a report published by the Financial Times.

The deal will generate revenue of AU$40 million per year for MGC’s joint venture MGC Derma. Under the terms of the contract, Varm Cosmo will buy a minimum of 15,000kg a month of CBD cosmetic products.

Varm Cosmo employs CBD for its moisturizing and anit-aging properties, while MGC claims that the non-psychoactive compound can be used to treat psoriasis and inflammation.

 

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