MPX Bioceutical Corporation (CSE: MPX) (OTCQX: MPXEF) - Investor Dashboard
MPX Bioceutical Corporation – Cannabis Operations Portfolio
MPX is progressing towards creating one of the largest cannabis enterprises in the U.S., with 10 dispensaries, over 9 million grams per annum of cultivation and over 1.2 million grams per annum of high-margin concentrate production. MPX’s acquisition strategy seeks the following: accretive valuations, licensed operators with strong operational track record, no turnarounds and Greenfield development in high-potential, early-stage markets with strong barriers to entry.
MPX Bioceutical Corporation provides management, staffing, procurement, advisory, financial, real estate rental, logistics and administrative services to three medicinal cannabis dispensaries in Arizona operating under the Health for Life brand. The company also acquired The Holistic Center dispensary in 2018. The company has also developed a high margin wholesale concentrates business, Melting Point Extracts (MPX), which has penetrated about 40% of the market. As a result, MPX Bioceutical Corporation has developed best-in-class operational and commercial practices which can be replicated to future acquisitions. The company’s Arizona assets also include two indoor cultivation centers and two extraction and processing facilities.
Arizona: An Attractive Market
- Medical-only market open since 2012
- 125K+ patients
- Approximately 5.1 grams permitted per day
- Strong barriers to entry with a limited number of dispensaries
- Dispensaries aren’t limited on production or sales
Ownership of 51% of IMT, which owns a 40,000-square-foot cultivation and production facility in Fall River with management services provided to license holder Cannatech Medicinals, which will also be licensed for three retail dispensaries (one permitted for Fall River). Massachusetts is a tightly regulated market, where the MPX has first-mover advantage. Construction on the first dispensary is underway.
Massachusetts: An Attractive Market
- Cultivation, production and retail dispensary licenses
- Adult use market expected to grow by CAGR of 113% to US$1B by 2020
- State regulates number of participants in market
MPX has an extraction agreement with Case Farms Collective, which has 22,000 square feet of extraction, post-processing, and packaging space in Long Beach. Through the agreement Case Farms will provide MPX with cannabis processing services and distribute MPX-branded products to dispensaries throughout California.
California: An Attractive Market
- Medical and recreational markets
- California cannabis market expected to reach $5 billion value in 2019
MPX has a 99% interest in GreenMart, an operational production, cultivation, and wholesale facility located in Las Vegas. The facility offers MPX extracts and Lucky Kitchen edibles and is capable of producing 1.6mm grams of flower and 85,000 grams of concentrates per year.
Nevada: An Attractive Market
- Medical and recreational markets
- Recreational market forecasted to reach US $630M by 2020
- Attracts more than 45 million tourists each year
MPX Bioceutical acquired 100% of the outstanding shares of Canadian LP Canveda, which received its cultivation license in 2017. Canveda has a 12,000-square-foot facility in Peterborough, Ontario. The facility, which has an annual production capacity of 1,000 to 2,000 kilograms, is set to begin its first production run.
MPX is developing a 72,342-square-foot production facility in Owen Sound. The facility has the capacity for future expansion of a total of 475,000 square feet. Once fully operational, the facility will have an annual capacity of 8,045 kilograms of dried flower and 317 kilograms of concentrate.
Ontario: An Attractive Market
- Recreational use in Canada expected to roll out in July 2018
- Represents expansion of the company’s footprint in Canada
MPX manages three dispensaries and one producer in Maryland. The company has the option to acquire each facility.
In June 2018, MPX received licensing approval to open a dispensary managed by its wholly owned subsidiary S8 Management. The dispensary, located in Bethesda, is owned by Budding Rose, Inc., and operates under the Health for Life brand. Rosebud Organics, Inc., will begin production of MPX-branded products through a management agreement with S8 Management.
Maryland: An Attractive Market
- 32,000 patients certified for medical cannabis use
- More than 46,000 patients signed up to become eligible for medical marijuana use
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