MPX International Accelerates Acquisition of the Medical Cannabis Learning Network
TORONTO, ON / ACCESSWIRE / December 3, 2019 / MPX International Corporation ("MPX International", "MPXI" or the "Company") (CSE:MPXI; OTC:MPXOF) announced it accelerated the acquisition of the remaining 80% interest of 2702148 Ontario Inc. dba KAAJENGA Cannabis ("KAAJENGA Cannabis") . On July 16, 2019, MPXI acquired a 20% stake in KAAJENGA Cannabis, securing the exclusive, worldwide, perpetual, royalty-free licence to the Medical Cannabis Learning Network (the "MCLN"), a turnkey video learning and engagement platform for the Cannabis Industry.
"Given the significant progress we have made in the four months since investing in this new model for patient acquisition, it made sense to accelerate our right to complete this transaction," said W. Scott Boyes, Chairman, President and CEO. "The MCLN's achievements thus far completely reinforce our strategy to make this technology part of our global expansion plan and further positions MPXI as a global cannabis company at the forefront of patient learning."
Since July, MPXI has fully integrated MCLN technology into its wholly-owned subsidiary Spartan Wellness Corporation ("Spartan"), a healthcare service provider and liaison that assists military veterans and first responders access medical services, including procuring medical cannabis. This approach has enabled MPXI to expand Spartan beyond military veterans and first responders to build relationships with other licensed producers.
The MCLN has a unique kiosk delivery system tied to a web portal that provides patients with learning and knowledge about the safe and appropriate use of Medical Cannabis in compliance with the Cannabis Act (Canada). The system has a built-in medical consultation component with its Spartan Wellness Clinic, which makes it simple for potential medical cannabis patients to talk to a medical professional and facilitates medical cannabis choices through to a variety of Licensed Producers with the appropriate strains and medical formulations.
The MCLN provides health care practitioners with a unique way of facilitating cannabis learning, medical consultation and cannabis options that help their patients find the right medical cannabis solution. Powered by a proprietary video learning platform, the MCLN provides video case studies, doctor-to-doctor experiences as well as research documents and periodicals that help doctors and patients make better informed decisions.
"MCLN technology offers significant benefits, including the Kiosk and the health card activation IP that makes the system private, gated and secure. We believe this model is better than the traditional patient acquisition model because people can access learning and knowledge in many more locations than are available within the traditional channels," noted Michael Arnkvarn, Chief Operating Officer of MPXI's Canadian operations.
MPXI will acquire all remaining shares of KAAJENGA Cannabis for a purchase price of $1,750,000 (the "Purchase Price"). The Purchase Price will be satisfied through the issuance of 3,224,247 units (the "Units") of MPXI at a price of $0.51 per Unit (for 2,696,078 Units) and $0.71 per Unit (for 528,169 Units). Each Unit will be comprised of one common share in the capital of MPXI (an "MPXI Share") and one (1) common share purchase share warrant ("Warrant"). Each Warrant shall entitle the holder to purchase one (1) MPXI Share ("Warrant Shares") at an exercise price of $0.61 per Warrant Share for five (5) years from the date of issuance.
MPXI is positioning itself as a leading global cannabis company; leveraging consumer learning as an IP will enable it to expand its operation efficiently and cost effectively throughout the world. The private network also strengthens MPXI's position in relation to the arrival of new medical cannabis products and approved uses to the medical market.
"The MCLN provides evidence-based videos that adhere strictly with Health Canada Guidelines for learning content," said Jim Hall, Compliance Chair at MCLN. "Given concerns about the learning gap in the medical cannabis industry, we believe this technology offers medical cannabis patients with a unique, compliant and data secure way to increase their knowledge base and access the right strains of cannabis for their needs."
MCLN officially launched in November and has activated people into the system, booked consultation, generated prescriptions and fulfilled orders. This technology has built in data and analytics that will provide predictability and scalability for MPXI going forward.
"We believe one of the challenges facing cannabis companies is patient acquisition and patient retention and we believe this acquisition will give us a technology advantage to support our international expansion plans," noted Mr. Boyes.
About The Medical Cannabis Learning Network
MCLN was developed by KAAJENGA Cannabis 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 Medical Cannabis Learning Network and the Cannabis Kiosk Solution to serve patients. The network will be deployed through a web portal attached to the Cannabis Kiosk Solution in non-traditional medical locations and facilities. Using proprietary card activation technology, the patient accesses the private network which provides them with a compliant, secure, and controlled path to 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 December 3, 2019