TORONTO, ON / ACCESSWIRE / April 23, 2019 / MPX International Corporation (”MPX International”, ”MPXI” or the ” Company”) (CSE: MPXI; OTC PINK: MPXOF) is pleased to announce that MPXI Malta Property Ltd. (”MPXI Malta”), a Maltese-company owned by MPX International (80%) and Malta-based Bortex Group (”Bortex”) (20%) has entered into a definitive agreement to purchase all outstanding shares of Alphafarma Operations Ltd. (”Alphafarma”) from Alpha Farma Limited (the ”Vendor”).
Additionally, MPXI Malta has been awarded a letter of intent (the ”LOI”) from Malta Enterprise, the economic development agency for the Republic of Malta, a member of the European Union, to receive a license to import, extract, produce finished products and distribute cannabis and cannabis derivatives (the ”License”) for medicinal use in Malta and export to certain international markets, such as the European Union. Malta is strategically located in the Mediterranean Sea and is a key commercial entry point for the European market.
Receipt of the LOI is the first step of the application process. The formal License is issued by the Malta Medicines Authority upon completion and EU-GMP certification of a cannabis processing facility. Upon receipt of the formal License, MPXI will produce EU-GMP quality cannabis oils and cannabis derivative products and pursue regulated medical cannabis distribution opportunities in the European Union through its wholly-owned medical brand, Salus BioPharma Corporation.
MPXI is fortunate in partnering with Bortex, a well-established Maltese conglomerate involved in manufacturing, distribution, retail operations and property development. Bortex will provide local support and oversight of the Company’s Malta operations.
Typically, Malta Enterprise allocates a property to the Licensee which must then be subject to planning and design approval and build-out. It can then take up to eighteen months to finalize and commence production. ‘We have been extremely fortunate to have been able to identify a 1,200 square meter ”GMP-ready” facility in Valletta which can quickly be adapted and certified for EU-GMP cannabis production.
W. Scott Boyes, MPXI’s Chairman, President and Chief Executive Officer
Planning is already underway to upgrade and equip the premises with operations potentially commencing later this year. We believe this will allow MPX International to be among the earliest licensed cannabis producers to move cannabinoid-based medicines into the European Union from Malta.
The Vendor, which is in the business of acquiring, repackaging and distributing pharmaceutical products throughout the European Union and North Africa, is transferring the lease for the ”GMP-ready” facility located in Valletta, the capital city of Malta, as well as the GMP certification to Alphafarma, newly created subsidiary of the Vendor, in exchange for the payment of €1.5 million (approximately CDN$2,260,800) in cash and the issuance of 1,000,000 common shares (”MPXI Shares”) and 300,000 common share purchase warrants to acquire additional MPXI Shares at an exercise price of $0.63 per MPXI Share for a period of five (5) years.
Select employees from the current tenant of the facility, several of which are experienced and certified in the various quality control and quality assurance standards required for EU-GMP production will remain with MPXI. The availability of such qualified personnel will also shorten and facilitate the GMP certification process and allow MPXI to more quickly secure final license approval and commence operations.
The Company is expected to invest approximately €3.0 million (approximately CDN$4,521,600) for refurbishing the facility, extraction, processing and packaging equipment and working capital.
”This is an important step in our European expansion plan. Malta not only provides a strategic gateway to the emerging EU markets, but also upholds high pharmaceutical standards and a strong regulatory framework. We look forward to combining our cannabis expertise and intellectual property with some of Europe’s leading pharmaceutical talent,” said Daniel Fryer, MPXI’s Head of European Development.
The Corporation will issue to Green Goblin Ventures Limited (”Green Goblin”) 423,142 MPXI Shares as consideration for the preparation of the application for the Licence and 114,511 MPXI Shares as consideration for identifying and facilitating the acquisition of Alphafarma and the transfer of the GMP certification.
As part of the partnership agreement whereby Bortex will provide oversight of and support to MPXI’s Maltese operations and as consideration for assistance with setting up the local manufacturing facility in the newly acquired Alphafarma site, the Corporation shall issue to Bortex 637,238 MPXI Shares.
About MPX International Corporation
MPX International Corporation is focused on developing and operating assets across the global cannabis industry with an emphasis on cultivating, manufacturing and marketing products which include cannabinoids as their primary active ingredient.