The MGC Pharmaceuticals Ltd (ASX: MXC) share price was amongst the biggest movers on the market on Monday.
Although its shares are now 3% higher to 7.1 cents, at one stage they were over 10% higher.
Why did its shares surge higher?
This morning the medical and cosmetics cannabis company announced that its MGC Derma division has signed the first binding sales agreement with South Korea-based cosmetics company Varm Cosmo.
The agreement is for a minimum contracted volume of $8,000,000 of its cannabidiol cosmetic product in bulk form which will then be sold to consumers as part of Varm Cosmo's cosmetics range.
An additional two binding contracts are expected to be signed in the coming weeks. These two agreements are being finalised, but have been structured in a way that will complete the full $40 million supply agreement signed earlier this month.
MGC Pharmaceuticals share price is up almost 80% since it first announced the supply agreement.
