On Thursday (March 8) MPX Bioceutical Corporation (CSE:MPX; OTC:MPXEF) held a conference call with investors to provide an inside look into its fiscal 2018 third-quarter financials and the rapidly expanding US cannabis market.
Scott Boyes, president and CEO of MPX, led the call by rounding up the most recent developments of the company and announced the company is breaking way to increase their production capacities.
These increases, Boyes said, will first be seen in the state of Arizona, where the company announced the acquisition of a group of businesses in the area.
Plans to expand into Canada are underway as well for the company. In May 2017 Boyes told the Investing News Network the company grew frustrated awaiting responses from Health Canada so instead decided to expand its reach into Arizona and Nevada.
However, during the call, Boyes revealed MPX has recently had “encouraging” dialogue with the Canadian agency and will be taking a closer look at its Ontario facility. Despite these aspirations, Boyes made it clear in the call that the primary focus of the company is in the US market.
MPX expanding footprint in the US cannabis market
In addition to its interests in Arizona, the company currently holds a presence in Massachusetts, Nevada, and Maryland. During the call, Beth Stalova, the chief operating officer of MPX, said the company has applications in Ohio that could be seeing developments in the coming weeks.
Boyes said the company currently has 10 dispensaries in four states either fully active or in a stage of construction. MPX also currently has three cultivation facilities and the fourth one under construction in Massachusetts, which will represent 100,000 square feet of cultivation, according to Boyes.
“This is one of the largest footprints in the US cannabis industry and one we intend to expand even further by expanding in states where we already operate and by entering into new markets,” Boyes said.
When asked by Russell Stanley, cannabis analyst at Echelon Wealth Partners, if there were any markets in the US MPX was staying clear from, Stalova said the company was sticking to its strategy to limiting licensing states. Stalova added she was fond of the California market and revealed a partnership MPX is working to enter that particular state.
“We take the MPX concentrates brand there under a licensing agreement,” Stalova said. When later asked more details for this deal Stavola added:
“We are working on a deal there now with a production license, where they would be a contract manufacturer for us and we would pay them a price per unit and license the MPX brand.”
Vahan Ajamian, cannabis research analyst for Beacon Securities asked the MPX group what its current market share in the state of Arizona is, after completing the most recent acquisition. Boyes said it’s difficult to provide a straight answer since most entities in the state don’t publish their results.
Stalova offered a guess of MPX amounting to seven or eight percent of the total market share in Arizona.
Later in the call Alan Brochstein, cannabis analyst with 420 Investor asked Boyes if MPX had a current need to raise capital for the completion of their deals.
Boyes answered by saying the company will only go to the market for capacity growth acquisitions but are confident in being cash flow positive in its operations over the next fiscal year.
Stanley asked the if the representatives had seen any problems or change in business after the Sessions memo came into effect when Attorney General Jeff Sessions rescinded the Cole memo back in January.
“It was like a minor speed bump that the industry raced over pretty fast,” Boyes said in response.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
CanBud Distribution Corporation Closes 2M Second and Final Tranche of its Oversubscribed Private Placement Offering
CanBud Distribution Corporation (CSE: CBDX) (FSE: CD0) (“CanBud” or the “Corporation”) is pleased to announce that it has closed the final tranche of its oversubscribed non-brokered private placement for aggregate gross proceeds of approximately $4,730,000 (the “Offering”).
The Corporation issued a combined total of 39,409,346 units (each a “Unit“) at price of $0.12 per Unit, with each Unit comprised of one common share in the capital of the Corporation (each a “Common Share“) and one common share purchase warrant (each a “Warrant“). Each Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.22 within 24 months of the closing of the Offering (the “Warrant Term“), provided, however that if the closing price of the Common Shares on the Canadian Securities Exchange (the “CSE“) (or any such other stock exchange in Canada as the Common Shares may trade at the applicable time) is $0.25 or greater per Common Share for a period of five (5) consecutive trading days at any time after the closing date of the Offering, the Corporation may accelerate the Warrant Term such that the Warrants shall expire on the date which is 30 days following the date a press release is issued by the Corporation announcing the reduced warrant terms.
Thoughtful Brands Inc. (CSE:TBI)(FSE:1WZ1)(OTCQB:PEMTF) (the “Company” or “Thoughtful Brands) announces that the letter of intent with Franchise Cannabis Corp. (“FCC”), previously announced in January, has been terminated. The previously announced European joint venture with FCC will continue and allow the Company to launch and tailor its products to European consumer demands
In connection with termination of the merger transaction with FCC, the Company has agreed to pay FCC $100,000 in cash and to issue FCC 5,000,000 common shares of the Company at a deemed value of $0.05 per share. The common shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.
Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value
Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).
Seattle Area Grocery Chain Metropolitan Market to Begin Carrying KOIOS and Fit Soda on March 22, 2021
Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.
Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.