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Press Release

MPX Closes Oversubscribed Private Placement Offering of $26.5 Million

Posted on: 22 Dec 17



MPX Bioceutical Corporation (the “Company” or “MPX”) (CSE:MPX) (OTC:MPXEF)  is pleased to announce that it has successfully closed its previously announced private placement offering (the “Offering”) of units (the “Units”) of the Company. Echelon Wealth Partners Inc., together with Canaccord Genuity Corp. as co-lead agents and special selling agent,  Chrystal Capital Partner LLP (together, the “Agents”), exercised in part the over allotment option for additional Units, for a total aggregate subscription of 56,326,958 Units at a price of $0.47 per Unit for total gross proceeds of $26,473,670.26. The Company expects to close a second, and final, tranche of the Offering early in January 2018.

“We are pleased with the investor response to the Offering which was successful in spite of the unfortunate decision by one large shareholder who chose “for personal reasons” to liquidate his position while the fund raise was in progress,” stated Scott Boyes, Chairman, President and CEO of MPX. “Our company will deploy these funds to continue to expand our footprint in the U.S. and Canadian cannabis sector, work diligently to grow both revenue and earnings and ultimately reward those old and new investors who have demonstrated confidence in our company, its management and its business plans.”

Each Unit issued in the Offering consists of one common share (“Common Share”) in the capital of the Company and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant entitles the holder thereof, pursuant to and in accordance with the warrant indenture, to acquire one Common Share at a price of C$0.64 for a period of 24 months from the date hereof, subject to adjustment and acceleration in certain circumstances.

In connection with their services under the Offering, the Company paid to the Agents an aggregate cash commission of $1,855,741.92 and issued an aggregate of 3,948,387 broker warrants (the “Broker Warrants”). Each Broker Warrant entitles the holder to acquire one Unit at an exercise price of $0.47 per Unit for a period of 24 months from the date hereof.

The Company intends to use the net proceeds from the Offering to fund future acquisitions and for working capital and general corporate purposes. The securities issued pursuant to the Offering are subject to a four month hold period in accordance with applicable securities laws expiring on April 23, 2018.

The securities issued pursuant to the Offering and the Private Placement have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About MPX Bioceutical Corporation

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 two 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.

The recently acquired GreenMart of Nevada NLV, LLC (“GreenMart”) is an award winning licensed cultivation, production and wholesale business, licensed for both the medical and “adult use” sectors in Las Vegas, Nevada, and is already selling wholesale into the Nevada medical cannabis market. GreenMart has also optioned suitable locations and intends to enter the higher-margin retail arena by applying for at least two dispensary licenses in the Las Vegas market which will operate under the “Health for Life” brand.

The Company owns assets in Massachusetts supporting cultivation, production and up to three dispensaries there, and with the closing of this most recent transaction, MPX has added the management of a full service dispensary in Maryland.

MPX continues to expand its U.S. footprint, and is in the process of acquiring management companies that provide operational and other services to two further 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.

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’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’s public documents filed on SEDAR at; and other matters discussed in this news release. Although MPX 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 disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.   

On behalf of the Board of Directors

MPX Bioceutical Corporation (formerly The Canadian Bioceutical Corporation)
W. Scott Boyes, Chairman, President and CEO

For further information, please contact:

MPX Bioceutical Corporation (formerly The Canadian Bioceutical Corporation)
W. Scott Boyes, Chairman, President and CEO

Justin Canivet
T: +1-416-586-1942



Last updated on: 27/12/2017

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