A Canadian cannabis company with an international focus has fully acquired its Australian division in an all-share deal.

On Tuesday (July 23), MPX International (CSE:MPXI,OTC Pink:MPXOF) announced the purchase the remaining stake in MPX Australia it does not already own for C$4 million worth of shares.


The deal will cost MPX just over 7 million common shares. These shares will be granted in three separate blocks based on achieved milestones by the Australian division.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

According to MPX, the full payment of shares will be staggered based on material achievements completed by MPX Australia, including the issuance of a cannabis license, the completion of its Launceston facility and a successful first harvest.

Scott Boyes, chairman, president and CEO of MPX, said in a press release that the company will now run operations in seven international markets: Canada, Australia, South Africa, Malta, Switzerland, England and Israel, where it will be part of a joint venture.

The executive added that this acquisition will be the basis for MPX to serve the Asian cannabis markets.

The Australian division of MPX is currently pursuing a medical cannabis license from the Australian Office of Drug Control to operate a facility to be built in Tasmania.

A projection from an analyst earlier this year indicates the Australian medical cannabis market will generate revenues of AU$36 million by the end of 2019.

The research, put together by Matthijs Smith, an analyst with Canaccord Genuity’s (TSX:CF) division in Australia, also projects that 11,600 new patients will be registered for medical cannabis use in 2019. “Our back-of-the-envelope calculations suggest that up to 500,000 Australians may benefit from using cannabis products for medical purposes,” he said.

Shares of MPX closed at a price of C$0.42, representing a decline of 1.17 percent, during Tuesday’s trading session. As of Wednesday’s (July 24) opening bell, the decline in value continued as the company took a loss of 1.19 percent.

MPX was formed after its predecessor, MPX Bioceutical, merged with iAnthus Capital Holdings (CSE:IAN,OTCQX:ITHUF). The merger was designed to apply only to MPX’s US-based cannabis assets.

At the time, the all-stock merger between the US division of the company and iAnthus allowed MPX to begin exploring business operations at the international stage.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or the “Company”), a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products and Bluma Wellness Inc. (“Bluma Wellness”), a vertically integrated operator in Florida, today announced the closing of the Company’s previously announced acquisition of Bluma Wellness.

Transaction Highlights

Keep reading... Show less

Construction of New Facility Under Way

TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) (“TransCanna” or the “Company”) is pleased to announce the appointment of commercial farming and construction expert, Josh Baker, to its Board of Directors today.

Keep reading... Show less

– Virtual Investor Conferences and KCSA Strategic Communications today announced the agenda for the upcoming KCSA Cannabis Industry Virtual lnvestor Conference. Individual investors, institutional investors, advisors and analysts are invited to attend. The program opens at 10:15 AM ET, with the first live webcast at 10:30 AM ET, on Tuesday, April 20 th .

Keep reading... Show less

Launching Digital Sales Platform

Global Wellness Strategies Inc. (CSE: LOAN) (FSE: O3X4) (OTCQB: PNNRD) (formerly Redfund Capital Corp.) (“Global” or the “Company”) announces KaleidoMyco agreement with digital marketing firm The Wolf of Marketing to launch digital sales platform.

Keep reading... Show less

An Emerging Markets Sponsored Commentary

Health and wellness, beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) recently announced that following the appointment of former Pepsi Co. executive, Melise Panetta to President of the organization. it has further bolstered its leadership team with veteran consumer packaged goods (“CPG”) expertise, which is anticipated to deepen and expand BevCanna’s existing sales and distribution network, and accelerate growth.

Keep reading... Show less