(i) Mr Brett Mitchell is a Director of the Company.
(ii) Brighght HK Ltd is a company associated with Mr Nativ Segev.
(iii) Chieftain Securities Pty Ltd is a company associated with Mr Brett Mitchell.
(iv) Chitta Lu Ltd is a company associated with Mr Roby Zomer.
(v) Regeneration Pharma Pty Ltd is a company associated with Mr Brett Mitchell.
(vi) Sibella Capital Pty Ltd is a company associated with Mr Brett Mitchell.
(vii) Sky and Space Global Ltd (SAS) is a company associated with Mr Brett Mitchel who is currently a Director of SAS.
(viii) Sputnik Enterprises Ltd is a company associated with Mr Brett Mitchell and Mr Roby Zomer, both of whom are Directors.
(ix) Graft Polymer Ltd is a company associated with Mr Roby Zomer who is a Director and Mr Brett Mitchell who is a founder and shareholder.
(x) TNT Mines Limited (TNT) is a company associated with Mr Brett Mitchell who is currently a Director of TNT.
c) Transactions with related subsidiaries
At the end of the period the following loans were owed by wholly owned subsidiaries of the Company:
During the year, through its subsidiary MGC Pharma (UK) Ltd, the Group completed its 80% acquisition of the equity
of Panax Pharma s.r.o (“Panax”), a company incorporated in Czech Republic, as follows:
(i) 25% equity in Panax issued;
(ii) 55% equity in Panax issued for the Group’s commitment to fund the rst 12 months operating costs (capped at €700,000); and
An option (exercisable within 3 years following the end of the 12-month funding period) to acquire the nal 20% equity in Panax at the
Group’s election for €600,000 of the Group’s ordinary shares to be issued on a 20-day VWAP at the date of option exercise. As at 30
June 2018 this option has not been exercised.
The acquisition is considered to be an asset acquisition as Panax does not constitute a ‘business’ under relevant standards.
b) Disposal of Subsidiary
On12 July 2017(“completion date”)the Group completed the disposal of its ErinMineral Resources Pty Limited (“EMRPL”)subsidiary,
and the entities EMRPLcontrols whichhold the remaining Senegal gold assets,toChesserResources Ltd (“CHZ”).
On completion CHZ issued the following asConsideration:
• 1,214,286fully paidordinary shares;
• 95,000 unlisted options, exercisable at $0.06 per share with an expiry date of 31 December 2019;
• 95,000 unlisted options exercisable at $0.06 per share with an expiry date of 31 December 2020;
• 5,714,286Class APerformanceSharesto convert into fully paid ordinary shares upon certication by an independent Competent
Person of a JORC Mineral Resource of 0.5Moz Au with an average grade of at least 2.0g/t gold in relation to the Projects; and
• 5,714,286Class B Performance Shares to convert into fully paid ordinary shares upon certication by an independent Competent
Person of a JORC Mineral Resource of 1.5Moz Au with an average grade of at least 2.0g/t gold in relation to the Projects.
In line withrelevant standards, the consideration is fair valued as at the date of disposal at which point the effective share price of the
CHZ shares was $0.042 per share.
25. BUSINESS COMBINATIONS
a) Acquisition of Subsidiary
30 June 2018
There were no subsidiaries acquired in the year ended 30 June 2018.
30 June 2017
Acquisition of Panax Pharma s.r.o
Notes to the Financial Statements
mgcpharma.com.au
54