MPX International Acquires 20% stake in Medical Cannabis Learning Network
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TORONTO, ON / ACCESSWIRE / July 16, 2019 / MPX International Corporation (“MPX International”, “MPXI” or the “Company”) (CSE: MPXI, OTC PINK: MPXOF) is pleased to announce that it has acquired a 20% stake in 2702148 Ontario Inc. dba KAAJENGA Cannabis (“KAAJENGA Cannabis”) on July 16, 2019, securing the exclusive rights to a turnkey video learning and engagement platform for the Cannabis Industry.
W. Scott Boyes, Chairman, President and CEO of MPX International said, “With the marketing and promotional restrictions placed on Licensed Producers, fact based medical education and learning is the most compelling way to lead the market and drive revenue.”
This investment positions MPXI at the forefront of compliant patient, doctor and healthcare practitioner education and provides MPXI with a unique mechanism for supporting patient communities. The learning will be delivered through a kiosk that will engage and educate patients and provide a process to fulfill prescriptions for medical cannabis, all in a manner compliant with the Cannabis Act (Canada) (the “Cannabis Act”).
“We believe strongly that learning is the key to expansion through patient acquisition and this firmly stakes our position as a global leader in learning within the Cannabis Industry and a global force in knowledge transfer and translation,” noted Michael Arnkvarn, Chief Operating Officer, MPXI Canada. “In Canada, learning is really the only way to reach people, provide factual information, and facilitate fulfillment of the appropriate product from a Licensed Producer.”
This investment will provide MPXI with an exclusive, worldwide, perpetual, royalty-free licence to use KAAJENGA technology for the purpose of developing and commercializing the Cannabis Kiosk Solution. MPXI has also entered into definitive buy/sell agreements from the shareholder of KAAJENGA Cannabis to acquire all remaining shares of the company based on achieving specific patient acquisition milestones in exchange for no less than 2,900,000 common shares and common share purchase warrants.
MPXI’s initial investment comprised $125,000 in cash and issued 245,048 units (the “Units”) at a price of $0.51 per Unit comprising one (1) common share in the capital of the MPXI Shares (“Common Share”) and one (1) common share purchase share warrant (“Warrant”). Each Warrant shall entitle the holder to purchase one (1) Common Share (“Warrant Shares”) at an exercise price of $0.61 per Warrant Share for five (5) years from the date of issuance.
Complimenting this investment is the fact that MPXI through Spartan Wellness Corporation (“Spartan”), provides support services to veterans and a Medical Cannabis Learning Network for Spartan patients will help in patient acquisition, adherence and patient outcomes by Canveda Inc. (“Canveda”), a Licensed Producer under the Cannabis Act, once licensed to sell medical cannabis to the public. Both Spartan and Canveda are wholly-owned subsidiaries of MPXI.
This private network will also strengthen MPXI’s position in relation to the new Canadian legislation scheduled to come into force in October 2019. With the arrival of new product formulations to the medical cannabis market, patients will want to learn from healthcare practitioners, how these new products work, which formulation is most appropriate for them, dosing requirements, and treatment options, making the Medical Cannabis Learning network a compliant and safe place for patients to learn.
“As we build our product suite, our international operations and our production capacity, building a compliant learning network to reach global markets made a lot of sense to us and positioned us strategically for patient acquisition through learning,” noted Mr. Boyes. “The unique cannabis kiosk solution (CKS) model is best-in-class and will help us scale globally. People from all over the world have questions and we wanted to provide answers and this investment ensures we lead the way.”
About KAAJENGA Cannabis
KAAJENGA Cannabis has developed and is in the process of commercializing a Cannabis Kiosk Solution (CKS) using its proprietary video learning and engagement rewards platform to activate, educate, and engage audiences through a private social learning network. KAAJENGA Cannabis, together with MPXI, developed the Cannabis Kiosk Solution as a compliant yet unique way of reaching patients more efficiently and effectively. The network will be deployed through a Web Portal attached to the Cannabis Kiosk Solution in non-traditional medical locations & facilities. Using proprietary card activation technology, the patient accesses the private network to receive compliant, secure, and controlled learning.
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.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, MPX International’s objectives and intentions. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in MPX International’s public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although MPX International believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, MPX International disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
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SOURCE: MPX International Corporation
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Released July 16, 2019