The last time we took a look at MPX Bioceutical Corp (OTCMKTS:MPXEF), we noted some promise based on the company’s move to pick up greater exposure to operations in the MMJ space in Canada. Shares have been on the move again this week as the company just announced that it has successfully completed the acquisition of 100% of the issued and outstanding shares of 8423695 Canada Inc. operating as “Canveda”, as previously announced on April 17, 2018, following through on that story.
According to the release, “Canveda is a Licensed Producer under Health Canada’s Access to Cannabis for Medical Purposes Regulations having received its Cultivation License on June 12, 2017.”
MPX Bioceutical Corp (OTCMKTS: MPXEF) is a multi-state diversified cannabis company with operations focused in the U.S. in the adult use and medical cannabis markets.
The company’s foundation is built on its profitable operations in Arizona, with three (and soon four), operating dispensaries and well the established Melting Point Extracts (MPX) Brand; it also has operations in Massachusetts, Maryland, and Nevada.
MPX Bioceutical Corporation plans to replicate its success in Arizona to become a dominant multi-state operator.
MPX Bioceutical Corporation, together with its subsidiaries, operates in the natural health products industry in North America. The company manufactures and distributes nutraceuticals, such as plant-based medicines. It also provides management, staffing, procurement, advisory, financial, real estate rental, logistics, and administrative services to medicinal cannabis enterprises. The company was formerly known as The Canadian Bioceutical Corporation and changed its name to MPX Bioceutical Corporation in November 2017. MPX Bioceutical Corporation was incorporated in 1974 and is based in Toronto, Canada.
According to company materials, “MPX, an Ontario corporation, through its wholly owned subsidiaries in the U.S., provides substantial management, staffing, procurement, advisory, financial, real estate rental, logistics and administrative services to three medicinal cannabis enterprises in Arizona operating under the Health for Life (dispensaries) and the award-winning Melting Point Extracts (high-margin concentrates wholesale) brands. The successful Health for Life brand operates in the rapidly growing Phoenix Metropolitan Statistical Area. With the acquisition of The Holistic Center, MPX adds another operating medical cannabis enterprise to its footprint in Arizona. MPX continues to expand its U.S. footprint, and is providing operational and other management services to three dispensaries and one production license in Maryland. The Company also leases a property in Owen Sound, Ontario, for which an application to Health Canada has been made for a cannabis production and sales license. In addition, the Company will continue its efforts to develop its legacy nutraceuticals business.”
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Traders will note 17% added to share values of the stock over the past week of action. Moreover, the listing has seen a growing influx of trading interest, with the stock’s recent average trading volume running 85% beyond what we have been seeing over the larger time frame.
“The Canveda acquisition should accelerate our ability to secure cultivation, sale and dealer licenses at our Owen Sound facility,” adds W. Scott Boyes, Chairman, President and CEO of MPX. “Entering into the Canadian market leverages our success in the United States to become a dominant North American marijuana enterprise and will allow us to explore new markets internationally. We believe that current and planned cultivation by existing licensed producers will oversupply the domestic market. Instead, we plan to focus on the production, distribution and retailing of high-quality cannabis distillates and derivative products for the domestic medical and adult use markets and for export to the growing list of countries legalizing the use of medical cannabis.”
Currently trading at a market capitalization of $255.3M, MPXEF has a significant war chest ($32.3M) of cash on the books, which compares with about $12M in total current liabilities. One should also note that debt has been growing over recent quarters. MPXEF is pulling in trailing 12-month revenues of $18.4M. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues creeping higher at 1.7%. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $MPXEF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $MPXEF, either long or short, and we have not been compensated for this article.