MPXOF - MPX International Provides Year-End Investor Update
(TheNewswire)
TORONTO, ONTARIO – TheNewswire- December 9, 2020 – MPX International Corporation (“ MPXInternational ”, “ MPXI ” or the“ Corporation ”) (CSE:MPXI ) ; (CNSX:MPXI.CN); ( OTC:MPXOF), a multinational diversifiedcannabis company, is please to provide the belowupdate to investors.
“Calendar 2020 has been an exciting year for MPXI,noted Scott Boyes, Chairman, CEO and President of MPX International.“We started the year with multiple projects under development inCanada, Switzerland, Malta, South Africa and Australia. A company thatwas pre-revenue on most of its initiatives faced the potential ofstagnation by the emergence of the COVID-19 pandemic and various andmultiple lock-downs, staffing issues and interruptions in the capitalmarkets that went along with it, yet MPXI has managed to move forwardon all fronts.”
Canadian Developments
Most importantly, the finalization of long-standingefforts with Canadian regulators on multiple projects, has permittedCanadian operations to advance significantly over the past five monthswith the pace of progress accelerating during calendar Q4. The highlights of that progress are describedbelow:
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- Canveda Inc. (“ Canveda ”), a whollyowned subsidiary of MPXI and licence holder under the Cannabis Act (Canada), received a license amendment from Health Canada authorizingCanveda to produce, sell, and export all categories of permittedCanadian cannabis products, including topicals, extracts and edibles.This amendment allows Canveda to immediately expand into theproduction and sale of Cannabis 2.0 products, including extracts,vapes, tablets and topical creams. These products will be offeredunder both the “Salus BioPharma” medical brand and the popularrecreational “Strain Rec™” brand.
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- Canveda introduced its recreational cannabis brand“Strain Rec™” in the Province of Saskatchewan. The “StrainRec™” brand is present in nearly half of Saskatchewan’s existingretail stores and expect our brand presence to increase in the NewYear as Saskatchewan is projecting to double the number of retailstores in early 2021. New “Strain Rec™” products are slated tobe introduced in early 2021 to include Cannabis 2.0 products.
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- The “Strain Rec™” brand was also introducedinto the Province of Alberta through a recreational wholesale supplycontract with Alberta Gaming, Liquor & Cannabis (“ AGLC ”), the solepurchaser of recreational cannabis products in Alberta. Initially,Canveda’s supply agreement was for dried flower. Canveda will seekto amend the supply agreement to include Cannabis 2.0 products inearly 2021.
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- MPXI Alberta Corporation, a wholly-owned subsidiaryof MPXI, acquired all of the assets of Blaze 420Today Inc. (“ Blaze420 ”), including the leasehold interests tothree (3) locations across Alberta which each have receiveddevelopment permits to operate as retail cannabis stores (the“ Assets ”) in Alberta. T he Assets enable MPXI to establish a cannabis retail platformin Alberta and open up to three (3) retail cannabis stores in theEdmonton, Alberta area, subject to the final approval from AGLC, upon meeting alllicensing requirements. The stores willoperate under the “Strain Rec™” brand and will purchase itsinventory from the AGLC, including “Strain Rec™” brandedproducts. The first of these retail stores is scheduled to open inearly 2021.
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- Canveda entered into an agreement with PanaxiaPharmaceutical Industries Israel Ltd. (“ Panaxia ”), thelargest manufacturer and distributor of medical cannabis products inIsrael, for the packaging and distribution of cannabis which will bemarketed and sold in Israel under Canveda’s medical brand “SalusBioPharma”. The first shipment of 100 kg arrived in Israel in lateNovember 2020 and is being prepared at Panaxia’s state-of-the-artfacilities for sale into the Israeli market. Undertakings havecommenced for a second Israeli import permit.
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- Due to anticipated sales for cannabis exceedingCanveda’s production capabilities, Canveda entered into a supplyagreement for medical and recreational cannabis (the “ Zenabis Supply Agreement ”) with the Canadian licence holder, Zenabis Ltd.(“ Zenabis ”), a large scale Canadian producer with an estimated 96,400 kg of licensed cannabis cultivationspace . The Corporation felt it was necessary tosecure a stable supply of high quality, high-THC cannabis tosupplement its increasing demand. The agreement secures a supply ofan additional 1,200 – 4,000 kg of cannabis flower over 12months.
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- Spartan Wellness Corporation (“ Spartan Wellness ”),a wholly-owned subsidiary of MPXI, entered into a services agreementwith Medical Cannabis by Shoppers Drug Mart Inc. (“ Medical Cannabis by SDM ”), a subsidiary of Shoppers Drug Mart. Spartan Wellness isutilizing its network of volunteers and professionals to provideclinical services for patients of Shopper Drug Mart includingprescribing cannabinoid combination and strength, advising on deliverymethods and providing general education about cannabis use as wellmonitoring efficacy and patient well-being, by conducting follow-upmedical appointments with patients. Shopper’s Drug Mart isCanada’s largest chain of pharmacies and through its subsidiary,Medical Cannabis by SDM, is licenced to sell medical cannabis.
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- MCLN Inc. (formerly 2702148 Ontario Inc.)(“ MCLN ”), a wholly-owned subsidiary of MPXI and a leadingCanadian private web-based cannabis portal, has developed, inconjunction with Miramedia Retail Inc. (“ Miramedia ”), a newMCLN branded web-based portal, “MiraCBD” https://miracbd.ca (the“ MiraCBD Portal ”). Miramedia is utilizing its network of retailers,natural health practitioners and consumers to connect their customersto the MiraCBD Portal. The MiraCBD Portal provides retailers, naturalhealth practitioners and consumers with access to the
Medical Cannabis Learning Network platform whichoperates as a: (a) private network educational platform, providinginformation about the use of medical cannabis; (b) telemedicine mediumproviding patient access to medical practitioners for advice andcannabis prescriptions from MCLN’s affiliate, Spartan Wellness; and(c) sales platform for Canadian cannabis licence holders. MCLN earnseducational and consultation fees from federal licence holderssubscribing to its services. MCLN also enteredinto a client referral agreement with Mother’s Mary SocialEnterprise Ltd., a company that focuses on educating and promotingmothers on the benefits of medical cannabis and currently has 5,500members. MCLN will provide a Mother’s Mary branded MCLN channel inorder to help this group further educate its members and use thevirtual medical services offered by Spartan Wellness along with accessto the marketplace.
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- Canveda personnel completed a tissue culture researchproject with the virtual aide of MPXI’s Australian horticulturalteam. Plants have been successfully rooted for tissue culture, allstandard operating procedures have been developed and this technologyis ready to be scaled on a commercial level in 2021.
“It’s been a rapid-paced year for our Canadianoperations”, notes Michael Arnkvarn, MPXI’s Canadian COO. “Wehave commenced shipments into two provinces with other Canadianjurisdictions on the near-term horizon. We have also completed ourfirst international transaction into Israel and are in multiplediscussions with distributors in several European countries. 2021looks equally exciting”.
Swiss Developments
Despite the global COVID-19 pandemic, Holyworld SA(“ Holyworld ”), a wholly owned subsidiary of MPXI, has experienced astrong year in 2020. The team has overcome the many challengespresented by COVID-19 to foster growth and progress. Additionally, theHolyworld management team has undergone a transformation bringing onboard sales and management executives fromprominent European cannabis companies and, as with the rest of theMPXI corporate group has undergone significant cost reductions tobring spending in line with the Swiss business plan.
Despite ongoing COVID-19 related lab equipment deliverydelays that have only allowed part of our Swiss lab to becomeoperational, Holyworld is now capable of producing approximately 30 kgof high-quality distillate per month operating a single shift. Addingan additional shift would bolster capacity to approximately 60 kg permonth.
To date, Holyworld has produced approximately 80 kg ofcrude with less than 1% THC, 20 kg of THC-free crude and 20 kg ofhigh-quality distillate (85% - 89% CBD).
The production from the Holyworld lab will be sold intothe wholesale market and will also be used in “Holyweed” brandedproducts sold through the Holyweed retail store in Geneva and www.cbdetc.com , a new multi-brand European marketplace for CBD productsincluding the following:
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- Loose-Leaf Pouches : Pouches containing 10 g of High-CBD, organic andproprietary blend of flower and trim with an RRSP of CHF10(US$11.25/C$14.40) per pouch.
- Hemp Cigarettes : Packages with 10 sticks containing High-CBD, organic andproprietary blend of flower rolled 100% hemp paper and filters with anRRSP of CHF10 (US$11.25/C$14.40) per package.
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- Golden Oil: A new range of oils fitting in to each Holyweed product family (PartyTime, Wellness, Sleep Tight and Sexy Time) .
With the success of the Geneva flagship “Holyweed”branded retail store, Holyworld is looking to expand to other retaillocations in and around Switzerland in 2021.
Holyworld has also launched a new corporate website www.holyworld.ch to increase outreach, online presence and B2B sales.
Following on the growth and developments in the Swissmarketplace, 2021 is shaping up to be a transformative year forHolyworld. In addition to the above initiatives, the Swiss team is indiscussions to supply large Swiss retail supermarkets and mid-rangecorner shop chains with its smokable products in calendar Q32021.
The Court of Justice of the European Union has recentlyruled that member states must not prohibit the marketing of lawfullyproduced cannabidiol, a decision that adds recognition for CBD’shealth and wellness benefits and opens up the entiremulti-billion-dollar EU market to companies like Holyworld. We believethat Holyworld is well-positioned to ride this wave of relaxedrestrictions in Europe.
MPXI Malta Developments
MPXI’s Maltese operations have advanced significantlyover the past five months substantially completing the buildout of its“GMP-ready” facility located in Mehriel,just outside of Valletta, the capital city of Malta, including all site infrastructure required to support theattainment of an EU-GMP certification for flower packaging. Thebuildout entailed numerous structural alterations and reinforcementsrequired to achieve the desired site security, EU-GMP compliant layoutand load-bearing capabilities. MPXI’s Maltese team, led by KarlBartolo, used their long-standing experience in the highly competitivegeneric pharmaceutical manufacturing sector to design a facility thatwould meet the highest standards of EU-GMP whilst maintaining acost-effective capital expenditure and operational cost.
Following the completion of the facility , MPXI’s Maltese operation has now submitted itsapplication for an EU-GMP certification with the Maltase MedicinesAuthority triggering a preliminary inspection subsequent to which theprocess of importing biomass material required for validation batchesmay be initiated. It is anticipated that EU-GMP certification willoccur during calendar Q2 2021 followed by certification for thepackaging of medical cannabis oils in calendar Q4 2021.
MPXI’s Maltese operations will leverage the ZenabisSupply Agreement securing a stable supply ofhigh quality, high-THC medical cannabis to meet initial demand prior to the commencement of MPXI’s operationsin South Africa.
In anticipation of the receipt of EU-GMP certification,MPXI has engaged with several European groups for the supply of EU-GMPcertified medical cannabis and expects to solidify arrangements in thefirst half of calendar 2021.
On December 2, 2020, the United Nation’s Commissionon Narcotic Drugs voted, on recommendation of the World HealthOrganization, to remove cannabis and cannabis resin from the categoryof drugs which included highly addictive and dangerous opioids such asheroin. This rescheduling will allow for more research on cannabis formedical use as well as create new opportunities globally for theCorporation and, in particular, MPXI’s Maltese operations which willbenefit from these developments.
South African Developments
First Growth Holdings (PTY) Ltd. (“ First Growth ”), anindirect subsidiary of MPXI, together with a prominent group of SouthAfrican agriculturalists and investors, has made significant progresstowards the construction of a half-hectare (53,000 sq. ft.) high-techgreenhouse in the wine producing Stellenbosch region of the WesternCape. Whilst the project has been delayed by COVID-19, the FirstGrowth team recently completed the second inspection by South African Health Products Regulatory Authority(“ SAHPRA ”) , the South African cannabisregulatory body, and is currently awaiting results. Actual cultivationof cannabis, with subsequent export intended for the Corporation’sMaltese facility, could commence as early as calendar Q3 2021.
Australian Developments
MPX Australia Pty Ltd. (“ MPXI Australia ”), awholly-owned subsidiary of MPXI, has been awarded licenses tocultivate, manufacture, import and export cannabinoid-based medicinesto/from Australia, from the Australian ODC, the Australian cannabisregulatory body. However, t he opportunity toimport products into Australia from Malta, Canada and South Africa hasprompted the Corporation to pivot from domestic production inAustralia to developing an import and distribution capability based inSydney and now plans to import and introduce the “Salus BioPharma”branded products to the Australian market.
Overall
Despite the COVID-19 pandemic the Corporation’smomentum has not changed. MPXI has successfully managed to moveforward and management is anticipating significant growth in revenuesand earnings in 2021. In addition, there are potential newopportunities in the offing that could be transformative to MPXI’sglobal expansion. We will inform the market, if and when these newventures move forward.
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 includes certain“forward-looking statements” under applicable Canadian securitieslegislation that are not historical facts. Forward-looking statementsinvolve risks, uncertainties, and other factors that could causeactual results, performance, prospects, and opportunities to differmaterially from those expressed or implied by such forward-lookingstatements. Forward-looking statements in this news release include,but are not limited to, MPX International’s objectives andintentions. Forward-looking statements are necessarily based on anumber of estimates and assumptions that, while considered reasonable,are subject to known and unknown risks, uncertainties and otherfactors which may cause actual results and future events to differmaterially from those expressed or implied by such forward-lookingstatements. Such factors include, but are not limited to: generalbusiness, economic and social uncertainties; litigation, legislative,environmental and other judicial, regulatory, political andcompetitive developments; delay or failure to receive board,shareholder or regulatory approvals; the Corporation’s ability toeffectively deal with the restrictions, limitations and health issuespresented by the COVID-19 pandemic; future cannabis pricing; cannabiscultivation yields; costs of inputs; its ability to market productssuccessfully to its anticipated clients; reliance on key personnel andcontracted relationships with third parties; the regulatoryenvironment in Australia, Canada, Malta, South Africa, Switzerland andother international 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 condensedconsolidated financial statements for the three and six months endedMarch 31, 2020 and for the three and nine months ended June 30, 2020and the corresponding management’s discussion and analysis; andother matters discussed in this news release. Although MPXInternational believes that the assumptions and factors used inpreparing the forward-looking statements are reasonable, unduereliance should not be placed on these statements, which only apply asof the date of this news release, and no assurance can be given thatsuch events will occur in the disclosed time frames or at all. Exceptwhere required by law, MPX International disclaims any intention orobligation to update or revise any forward-looking statement, whetheras a result of new information, future events, or otherwise.
For further information, pleasecontact:
MPX International Corporation
W. Scott Boyes, Chairman, President andCEO
T: +1-416-840-4703
info@mpxinternationalcorp.com
https://spartanwellness.ca/spartan-network/
For additional information on MPXI visitour website www.mpxinternationalcorp.com or http://mpxi.tv .
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