MPXOF - MPX International enters into Asset Purchase Agreement to Expand into the Alberta Retail Cannabis Market under the Retail Banner 'Strain Rec'

(TheNewswire)

TORONTO, ONTARIO - TheNewswire- October 14 ,2020 - MPX International Corporation (" MPXInternational ", " MPXI " or the" Corporation ") (CSE:MPXI ) ; (CNSX:MPXI.CN); ( OTC:MPXOF) is pleased to announce thatits wholly-owned subsidiary, MPXI Alberta Corporation(" MPXIAlberta "), has entered into an assetpurchase agreement (the " Agreement ") dated July 31, 2020 pursuantto which MPXI Alberta will acquire substantially all of the assets ofBlaze 420 Today Inc. (" Blaze 420 "), including the leaseholdinterests to three (3) locations across Alberta which each havereceived development permits to operate as retail cannabis stores (the" Assets ").

T he Assets being acquired willenable MPXI to establish a cannabis retail platform in Alberta andopen up to three (3) retail cannabis stores in the Edmonton, Albertaarea, subject to the final approval from AlbertaGaming, Liquor & Cannabis ( " AGLC "), upon meeting all licensing requirements.

"The acquisition of the Blaze 420 Assets isanother step forward in achieving our overall retail strategy in theProvince of Alberta," noted Michael Arnkvarn, Chief OperatingOfficer, Canada of MPXI. Canveda Inc., MPXI Alberta's affiliate,recently entered into an agreement with AGLC to supply non-medicalcannabis to retail outlets in the Province of Alberta, includingAlbertaCannabis.org. In addition to the supply agreement with AGLC,opening our own retail storefronts in Alberta is expected to give MPXIthe ability to showcase its branded products to Canadianconsumers."

Pursuant to the terms of the Agreement, MPXI Albertawill acquire the Assets for a total purchase price of up to $749,000.00 comprised of the following consideration and based upon theachievement of certain milestones as set out below:

1. (i) up to $283,333.00 as of the date of the official openingof the first (1 st ) retail store (" Milestone 1 ")satisfied as follows: (a) $83,333.00 in cash; (b) $100,000.00 ofcommon shares in the capital of MPXI (the " MPXI Shares ") to be issued at a fixed price of $0.25 per MPXIShare; and (c) $100,000.00 through the issuance of a promissory note(" Note 1 "), less any outstanding principal amount and anyaccrued and unpaid interest owing by Blaze 420 to MPXI as of theClosing Date (as defined in the Agreement) pursuant to the promissorynote between Blaze 420 and the Corporation date d June 27, 2019 .

1. (ii) up to $183,333.00 as of the date of theofficial opening of the second (2 nd ) retail store(" Milestone 2 ") satisfied as follows: (a) $83,333.00 in cash; and (b) $100,000.00 through the through the issuance ofa promissory note (" Note2 ").

1. (iii) up to $283,333.00 as of the date of theofficial opening of the third (3 rd ) retail store(" Milestone 3 ") satisfied as follows: (a) $83,333.00 in cash; (b)$100,000.00 of MPXI Shares to be issued at aprice per share equal to the ten (10) day volume weighted averageprice of the MPXI Shares on the Canadian SecuritiesExchange ; and (c) $100,000.00 through the through the issuance of a promissorynote (" Note 3 " together with Note 1 and Note 2, the" Notes ").

The Notes will be paid in quarterly increments witheach payment equal to 20% of the Free Cash Flow generated in theprevious quarter by the specific retail store operated by MPXI Albertathat the Note was issued in connection with. " Free CashFlow " means, the cashthat is produced after MPXI Alberta pays for all its operatingexpenses (including creditor payments, sales taxes, corporatetaxes and interest payments ) and provides for accrued but unpaid salaries, payrolltaxes, sales taxes, corporate taxes and operating expenses and overdue creditor accounts. For theavoidance of doubt, the Free Cash Flow calculation for purposes of theAgreement will exclude :(A) the introduction of new capital; (B) anycapital expenditure; and (C) proceeds from the disposal of any assets.

About MPX InternationalCorporation

MPX International Corporation is a multinational diversified cannabis company focused on developing and operating assets across theinternational cannabis industry with an emphasis on cultivating,manufacturing and marketing products which include cannabinoids astheir primary active ingredient. With current operations spanning fourcontinents in Canada, Switzerland, South Africa, Malta and Australiaas well as evolving partnership and distribution opportunities inother jurisdictions, MPXI continues to position itself as an emergentglobal participant in the cannabis industry.

Cautionary Statement RegardingForward-Looking Information

This news release includescertain "forward-looking statements" under applicableCanadian securities legislation that are not historical facts.Forward-looking statements involve risks, uncertainties, and otherfactors that could cause actual results, performance, prospects, andopportunities to differ materially from those expressed or implied bysuch forward-looking statements. Forward-looking statements in thisnews release include, but are not limited to, MPX International'sobjectives and intentions. Forward-looking statements are necessarilybased on a number of estimates and assumptions that, while consideredreasonable, are subject to known and unknown risks, uncertainties andother factors which may cause actual results and future events todiffer materially from those expressed or implied by suchforward-looking statements. Such factors include, but are not limitedto: general business, economic and social uncertainties; litigation,legislative, environmental and other judicial, regulatory, politicaland competitive developments; delay or failure to receive board,shareholder or regulatory approvals; the Corporation's ability to effectively deal with therestrictions, limitations and health issues presented by the COVID-19pandemic; future cannabis pricing; cannabis cultivation yields; costsof inputs; its ability to market products successfully to itsanticipated clients; reliance on key personnel and contractedrelationships with third parties; the regulatory environment inAustralia, Canada, Malta, South Africa, Switzerland and otherinternational jurisdictions; the application of federal, state,provincial, county and municipal laws; and the impact of increasingcompetition; those additionalrisks set out in MPX International's public documents filed on SEDARat www.sedar.com , including its audited annualconsolidated financial statements for the financial years endedSeptember 30, 2019 and 2018, its unaudited interim condensed consolidatedfinancial statements for the three and six months ended March 31,2020 and the correspondingannual management's discussion and analysis; and other mattersdiscussed in this news release. Although MPX International believesthat the assumptions and factors used in preparing the forward-lookingstatements are reasonable, undue reliance should not be placed onthese statements, which only apply as of the date of this newsrelease, and no assurance can be given that such events will occur inthe disclosed time frames or at all. Except where required by law, MPXInternational disclaims any intention or obligation to update orrevise any forward-looking statement, whether as a result of newinformation, future events, or otherwise.

For further information, please contact:

MPX International Corporation

W. Scott Boyes, Chairman, President and CEO

T: +1-416-840-3725
info@mpxinternationalcorp.com

For additional information on MPXI visit our website www.mpxinternationalcorp.com or http://mpxi.tv .

NOT FOR DISTRIBUTION TONEWSWIRE SERVICES IN THE UNITED STATES OR FOR DISSEMINATION IN THEUNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAYCONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS.

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