TORONTO, Jan. 03, 2019 (GLOBE NEWSWIRE) -- MPX Bioceutical Corporation (“MPX”) (CSE: MPX; OTC: MPXEF) announced that on December 28, 2018, it had agreed to acquire certain minority interests in two Massachusetts entities associated with certain cultivation and production activities. The entities include IMT, LLC and Fall River Development Co. LLC, both limited liability companies domesticated in Massachusetts (“Sellers”). Through its wholly-owned subsidiary CGX Life Sciences Inc. of Nevada, MPX currently owns fifty-one percent (51.0%) of each entity, and today announces its agreement to acquire the remaining interests in an all-stock transaction.
Under the terms of the agreement, MPX will issue to the Sellers common shares of MPX equal, in the aggregate, to $4.9 million USD, as determined by the ten day volume weight average price of MPX Shares on the Canadian Stock Exchange (“Ten Day VWAP”) prior to the announcement of this agreement, and subject to the rules and policies of the Exchange Share held.
The transaction is subject to customary closing requirements of the parties under Massachusetts law, and may be subject to regulatory supervision and approval.
About MPX Bioceutical Corporation
MPX, through its wholly-owned subsidiaries in the U.S., provides substantial management, staffing, procurement, advisory, financial, real estate rental, logistics and administrative services to three medicinal cannabis enterprises in Arizona operating under the Health for Life (dispensaries) and the award-winning Melting Point Extracts (high-margin concentrates wholesale) brands. The successful Health for Life brand operates in the rapidly growing Phoenix Metropolitan Statistical Area. With the acquisition of The Holistic Center, MPX added another operating medical cannabis enterprise to its footprint in Arizona.
GreenMart of Nevada NLV, LLC (“GreenMart NV”) is an award-winning licensed cultivation, production and wholesale business, licensed for both the medical and “adult use” sectors in Las Vegas, Nevada, and is already selling wholesale into the Nevada medical cannabis market.
In Massachusetts, MPX is building out and will operate a cultivation and production facility as well as up to three dispensaries, and manages three full service dispensaries and one producer in Maryland.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in MPX’s periodic filings with Canadian securities regulators. When used in this news release, words such as "will”, “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “believe”, “should”, “our vision" and similar expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, anticipated benefits associated with the transaction described herein, anticipated effects of the transaction on the company and its strategy going forward, the completion of any capital project or expansions, the timing for the completion of the transaction, and the satisfaction of closing conditions including, without limitation, compliance by MPX with various covenants contained in the agreement.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws, and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Chairman, President and CEO
MPX Bioceutical Corporation (formerly The Canadian Bioceutical Corporation)
KCSA Strategic Communications