TORONTO, ON / ACCESSWIRE / June 11, 2019 / MPX International Corporation (“MPX International”, “MPXI” or the “Company”) (CSE: MPXI; OTC PINK: MPXOF) is pleased to announce that it has entered into an agreement with First Growth Holdings (Pty) Ltd. (“First Growth”) which provides the basis for MPXI and First Growth to enter into a series of agreements through which MPXI intends to acquire a 51% interest in First Growth, subject to the completion of due diligence as well as definitive documentation.
First Growth is applying under the Medicines and Related Substances Act, No. 101 of 1965 for a license to cultivate, manufacture and export cannabis from the Sonop Farm, which is located in the traditional wine-growing region of Stellenbosch in South Africa’s Western Cape.
The culmination of this South African joint venture will establish a low-cost jurisdiction in which MPXI will be able to purchase either all or a substantial portion of the cannabis flower and/or extract to support its operations in Canada, Europe and Oceania. Full development of the project would result in up to 6 hectares (approximately 530,000 square feet) of advanced EU-Good Agricultural Practices (“EU-GAP”) certified greenhouse cultivation and EU-Good Manufacturing Practice (“EU-GMP”) certified extraction and processing laboratory.
Upon First Growth achieving the applicable milestones outlined below, MPXI will issue warrants in MPXI (“MPXI Warrants”) to the current shareholders of First Growth up to an exercise value of US$5,000,000. The warrants will be issued in tranches, as outlined herein, will have a term of three years, and a price equal to the five day volume weighted average price of the common shares of MPXI on the Canadian Securities Exchange (the “CSE”) as of the day the respective milestone has been met, unless otherwise stated. The MPXI Warrants will be issued pursuant to all applicable securities laws, regulations, rules, rulings and orders and the rules of the CSE. Subject to definitive documentation, the MPXI Warrants will be issued as follows:
- US$500,000 upon receipt by First Growth of a cultivation, import and export license from South African Health Products Regulatory Authority (“SAHPRA”) with an exercise price determined as the five-day volume weighted average price of the common shares of MPXI on the CSE as of the date of the Definitive Agreements;
- US$500,000 upon receipt by First Growth of a cultivation, import and export license from SAHPRA;
- US$1,000,000 upon successful cultivation and processing of 1,000 kg of Good Agricultural and Collection Practice (“GACP”) grade dried flower suitable for delivery to a 3rd party extraction facility;
- US$1,500,000 upon successful cultivation and processing of 10,000 kg of GACP grade dried flower suitable for delivery to a 3rd party extraction facility;
- US$500,000 upon receipt First Growth of an extraction and manufacturing license from SAHPRA; and
- US$1,000,000 upon successful delivery of 100 kg of EU-GMP grade cannabis extract through the First Growth processing facility.
South Africa is currently one of the few countries in Africa that has agricultural standards capable of meeting Good Agricultural Practice standards as defined by the European Union.
W. Scott Boyes, Chairman, President and CEO of MPX International
As well, our partners at First Growth bring to the venture, extensive experience in regional cultivation, packaging and logistics enabling MPXI to quickly bring the venture on-line and ensuring us of a high quality and reliable supply of lower-cost cannabis biomass and extract for our growing global markets.
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.