The Toronto-based medical cannabis company MPX Bioceutical Corporation (CSE:MPX) announced that it had completed its acquisition of the medical cannabis company Canveda Inc., on Monday.
MPX purchased Canveda for a total of $18.12 million CAD, with $3.12 million being paid in cash while the other $15 million was through the insurance of 21,428,571 common shares in the capital of MPX, at $0.70 per share.
Canveda has been a licensed producer of cannabis under Health Canada’s Access to Cannabis for Medical Purposes Regulations since receiving its Cultivation License in June 2017.
The company already has a 1,200 square-foot facility located in Peterborough, Ontario that is able to produce approximately 1,000-1,200 kilograms of cannabis flower per year.
MPX Bioceutical Corporation
Michael Arnkvarn, the Executive Vice-President and Chief Marketing Officer of MPX, has said that “with the acquisition of Canveda, MPX has established a foothold in Canada to develop a vertically integrated business from seed to sale.”
The company’s next step is to expand its relationship with the medical cannabis and pharmaceutical company Panaxia, as well as “finalize strategic alignments with existing marijuana business [and] enterprises that will shorten [the company’s] path to a sustainable and profitable Canadian presence.”
According to the Chairman, President and CEO of MPX, W. Scott Boyes, “entering into the Canadian market leverages [the company’s] success in the United States to become a dominant North American marijuana enterprise.”
Arnkvarn has also mentioned that MPX’s hopes to “[acquire] a tremendous amount of expertise in the production and marketing of cannabis oils, cannabis derivatives, and cannabinoid-infused products, and…will leverage this knowledge to manufacture and distribute these products in Canada as they become approved for sale by Health Canada.”
Shares of MPX rose by nearly four percent on Monday after the announcement had been made. The company was able to close at a share value of $0.92 CAD after opening at $0.88.
Comparatively, MPX closed at $0.89 on Friday.
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