As quoted in the press release:
Canveda is a private company operating in Peterborough, Ontario from a fully built-out facility that is ready to commence its first production run and is capable of producing approximately 1,000-1,200 kilograms of high quality cannabis flower annually.
MPX will acquire the Canveda Shares for a total purchase price of CDN$18 million which is comprised of the following consideration:
- CDN$3,000,000 in cash;
- CDN$15,000,000 satisfied through the issuance of 21,539,261 common shares in the capital of MPX (the “MPX Shares”) issued at a price of CDN$0.70 per MPX Share, representing the 10-day Volume Weighted Average Price (VWAP) calculated as of the date of the LOI; and
- the issuance of 6,000,000 common share purchase warrants each exercisable into one (1) MPX Share at an exercise price of CDN$0.84 for a period of five (5) years from the date of issuance.
“We have always considered a Canadian presence to be a critical component of our business strategy,” said W. Scott Boyes, Chairman, President and CEO of MPX. “While we have never intended to build-out the massive cultivation facilities being constructed by some of the other Canadian Licensed Producers, we will be focussing on utilizing the advanced extraction and distillation processes developed by our U.S. operations to produce and market the MPX-branded, award-winning, concentrates in Canada, commencing with high-quality cannabis oils, followed by the broader range of MPX products as they become permissible under ACMPR rules. We are also excited about the import/export opportunities available to Canadian LP’s.”