US-focused marijuana company agrees to purchase Canadian grower

A Toronto-based marijuana company targeted on U.S. leisure and medical hashish markets plans to spend about 23 million Canadian dollars ($18.three million) in money, inventory and warrants to purchase a small licensed producer in Ontario.

MPX Bioceutical agreed to purchase Peterborough-based Canveda for CA$three million in money, CA$15 million in inventory plus the issuance of 6 million widespread share purchase warrants, exercisable into one share for 84 Canadian cents every.

In the United States, MPX has enterprise pursuits in dispensaries and cultivation amenities in 4 states: Arizona, Nevada, Maryland and Massachusetts.

The company’s newest transfer demonstrates how U.S. corporations – or these primarily working within the states – can leverage their branding expertise or extraction applied sciences within the Canadian market, Echelon Wealth Partners analyst Russell Stanley informed Marijuana Business Daily.

He pointed to the MedMen-Cronos three way partnership introduced final month for instance of a U.S.-based company coming north to increase its attain.

The transfer would give MPX a beachhead in Canada to market its branded merchandise from the United States, Stanley wrote in a analysis observe.

He stated MPX-branded extract merchandise developed by its U.S. operations might drive its Canadian enlargement.

“This begins with oils, and should expand as other products are legalized here,” he wrote.

Canveda’s Peterborough facility is prepared to begin its first manufacturing and is able to producing up to 1,200 kilograms of hashish flower yearly.

MPX is traded on the Canadian Securities Exchange beneath the image MPX.

Matt Lamers might be reached at [email protected]

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