MPXOF - MPX International's Thailand Subsidiary Closes US$10 Million Financing and Provides Project Update
(TheNewswire)
TORONTO, ONTARIO, and BANGKOK THAILAND – TheNewswire - October 4, 2021 – MPXInternational Corporation ( CSE:MPXI ) (CNSX:MPXI.CN) ( OTC:MPXOF) (“ MPX International ”,“ MPXI ” or the “ Corporation ”) , a multinational diversified cannabis company, and its subsidiary, Salus International ManagementLtd. (“ SIM ”), a management company currentlyfocussed on operations in Southeast Asia, are pleased to announce that SIM has completed its US$10 million (C$12,748,000) privateplacement (the “ SIMFinancing ”) which is being used to completethe build-out, acquire equipment and commence operations of astate-of-the art, EU-GMP-compliant cultivation, extraction,processing, testing and packaging facility capable of extracting 750kgs of biomass and producing 30kgs of CBD/THC distillate/isolate eachday.
SIM has entered into a management agreement with Salus Bioceutical (Thailand)Co. Ltd. (“ Salus Thailand ”), aThailand-based medical cannabis company jointly owned by SIM and aconsortium of Thai business people, whereby it is providing design,construction and technical support services, and ongoing managementsupport of the project in exchange for management and other fees forthe provision of its services. SIM’s partners in Salus Thailandconsist of a consortium of Thai business people who will play anactive role in government relations, negotiation and maintenance ofsupply relationships with medical and commercial institutionsthroughout the country and will be working closely with the Rajamangala University of Technology IsanSakonnakhon Campus (the “ University ”) and Sarapee Community Enterprise Green andClean (the “ Community Enterprise ”) to ensure optimal benefits to local interests withinChiang Mai province.
The extraction/distillation structure includes auniquely-designed, highly-automated, computer-monitored mobileextraction unit designed by Canada-based extractX Inc. incorporatingthe most modern extraction and distillation equipment and processes.The Board of SIM believes the facility will be capable of producingmore CBD/THC distillate and isolate than any current or near-termpotential competitor and at a much lower cost per unit than producersemploying conventional extraction methods. The extractX unit wasspecially configured for the Thailand facility, has already beeninstalled in the Chiang Mai facility and is expected to becomeoperational in mid-October.
Initial production will be focussed on the productionof CBD distillate/isolate from hemp supplied by locally-contractedhemp farms. Current prices for CBD distillate/isolate range fromUS$8,000 to US$12,000 per kg. Salus Thailandalready has letters of intent for the purchase of over 6,000 kg of CBDdistillate/isolate from several Thailand-based cosmetic, food andbeverage manufacturers.
Construction of an ISO 17025 compliant testing andcalibration facility is expected to be completed in mid-November whichwill allow Salus Thailand to facilitate and accelerate testing andvalidation procedures mandated by the Thai FDA.
Planning is currently underway for the erection of a12,000 square foot indoor cultivation building, deploying a 3-tierhydroponic growing system, capable of producing 10,000 kgs of cannabisbiomass. This will be used for the processing of THC-basedmedical-grade cannabis distillate which will be sold to Thai publicand private hospitals and clinics expected to begin in Q2 of 2022.
MPXI’s entrance into the Southeast Asia market hasfurther diversified its opportunity to participate in global cannabismarkets, complementing its European projects in Switzerland and Malta,cultivation in South Africa, distribution plans in Australia and itscurrent and growing operations in Canada.
Cannabis in Thailand
Cannabis has been used extensively in Thailand as partof “Traditional Thai Medicine” for hundreds of years. Now with thesupport of the Thai Government, its use is being expanded into thepublic hospital system. Cannabis and cannabis derivatives must beprescribed by a medical practitioner and delivered through a hospitalor medical clinic. There is concern that such products must be grownand processed in accordance with Thai GMP standards and that adequatesupply be available to support the rapidly increasing demand forcannabis oils, topicals etc. With its population of almost 70 millionand its history of using cannabinoid-based medicines, Thailand couldquickly become one of the world’s largest medical cannabismarkets.
“Salus Thailand and SIM management have consultedextensively with our University partners at Rajamangala University of Technology ,the Thai FDA, the federal Government Pharmaceutical Office (the“ GPO ”), government representatives, hospital directors, clinicsand others within Thailand to ensure that our proposed operations willbe able to meet the expectations of all parties while remainingsensitive to the culture, regulatory environment and expectations ofthe University, the Thai government and the Thai medical community,”commented W. Scott Boyes, Chairman, President and CEO of MPXI. Webelieve that we are the first North American medical cannabis companyto enter the Thai market and are delighted to be able to contribute tothe rapid growth of the cannabis industry in Thailand and, withexports now permitted by the Thai government, potentially, expandsales to the ASEAN community of nations and the entire Southeast Asiaregion. We see the emerging markets in Europe and Asia to beformidable with each one potentially larger than the projected size ofthat in North America and are actively establishing a foothold inboth; a strategy that will add near-term value to the Corporation andits shareholders.”
Tanadee Pantumkomon, COO of Salus Thailand, observed,“Our focus is on producing high quality products for the domesticmarket, and possibly future export to the ASEAN region and beyond.Initially, however, there is a significant and growing demand for suchproducts within Thailand and we expect this growth to continue toaccelerate. MPXI, SIM and Salus Thailand have assembled a strongmanagement and advisory team that will collectively contribute to thesuccess of this enterprise.” (See MPXI’s Press Release dated June3, 2021 MPX International'sThailand Venture Announces Board and Advisory Appointments - MPXInternational Corporation (MPXI) .
Financing
MPXI has been issued with 10 million SIM Units (asdefined below) with each SIM Unit representing one SIM Share (asdefined below) and one half of one SIM Warrant (as defined below) asdescribed in more detail below.
SIM has now raised US$10 million(C$12,748,000) through the issue of 10 millionnew SIM Units at US$1.00 per SIM Unit which represents a 50% interestin the share capital of SIM (including the SIM Shares issued to MPXIas described above).
Consequently, there are now 20 million SIM Unitsissued, with MPXI holding a 50% stake in SIM.
As set forth above, SIM completed a private placementfinancing (the “ SIMFinancing ”) of US$10 million(C$12,748,000) of units (the “ SIM Units ”) of SIMat a price of US$1.00 (C$1.27) per SIM Unit from investors primarilyin Thailand, Europe and Canada. SIM is using the proceeds to fullyfund the first two phases of the development of a Thai GMP compliantresearch, cultivation and processing facility in Thailand’s ChiangMai province (the “ ThaiFacility ”). Each SIM Unit in the SIM Financingconsists of one (1) common share (a “ SIM Share ”) in thecapital of SIM and one-half of one common share purchase warrant (a“ Warrant ”). Each Warrant entitles the holderthereof to acquire one SIM Share at a price of US$1.50 (C$1.91) for a period of twenty-four(24) months from the date of issue, subject to adjustment andacceleration in certain circumstances.
SIM may pay a cash placement fee equal to not more than5% of the aggregate gross proceeds paid by each subscriber of SIMUnits that are invested in the SIM Financing .
In addition, SIM may issue that number of common share purchase warrants (the “ Compensation Warrants ”) equal to not more than 2.5% of the aggregate number ofSIM Shares issued as part of the SIM Units and underlying the Warrantsas if exercised as of the closing date. The Compensation Warrants shall be exercisable at theExercise Price for a period of two (2) years from the applicableclosing date of the SIM Financing .
The cash placement fee will only be payable and theCompensation Warrants will only be issuable to third parties that havebeen formally engaged in order in order to assist with fund raisingefforts.
About MPXInternational Corporation
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 fivecontinents in Canada, Switzerland, South Africa, Malta, Australia andThailand as well as evolving partnership and distributionopportunities in other jurisdictions, MPXI continues to positionitself as an emergent global participant in the cannabisindustry.
SIM
SIM is a private Ontario corporation and apartially-owned subsidiary of MPX International Corporation along witha group of private shareholders. SIM was incorporated to providedesign, planning, financing, training, and on-going operationalsupport to cannabis initiatives, partnerships, and joint ventures inSoutheast Asia. Its revenue is generated primarily from fees chargedfor the supply of management services.
Salus Thailand
Salus Thailand is a Thai company involved in thecultivation, processing and distribution of high-quality medicalcannabis products to the medical community in Thailand, operating forthe benefit of the health and well-being of the Thai people.
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 ability to complete any futurepotential transactions and the terms and conditions thereof; theapplication of federal, state, provincial, county and municipal laws;and the impact of increasing competition; those additional risks set out in MPXInternational’s public documents filed on SEDAR at www.sedar.com , including its audited annualconsolidated financial statements for the financial years endedSeptember 30, 2020 and 2019, and the corresponding management’sdiscussion and analysis; and other matters discussed in this newsrelease. Although MPX International believes that the assumptions andfactors used in preparing the forward-looking statements arereasonable, undue reliance should not be placed on these statements,which only apply as of the date of this news release, and no assurancecan be given that such events will occur in the disclosed time framesor at all. Except where required by law, MPX International disclaimsany intention or obligation to update or revise any forward-lookingstatement, whether as a result of new information, future events, orotherwise.
For further information about MPXI,please contact:
MPX International Corporation
W. Scott Boyes, Chairman, President andCEO
T: +1-416-840-4703
info@mpxinternationalcorp.com
or visit one our websites:
Salus International Management Ltd.
Tanadee Pantumkomon
tanadee@salusinternational.com
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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