TORONTO - MPX International Corporation (' MPX International', 'MPXI' or the 'Corporation') (CSE: MPXI; OTC: MPXOF), a multinational diversified cannabis company, has reported its financial results for its second fiscal quarter, the three and six month period ended March 31, 2021.
Second Quarter 2021 Financial Highlights
173% net revenue growth over Q2 2020
YTD G&A reduced by 22% vs same period last year
YTD Gross margins at 68%
YTD Adjusted EBITDA improves by 49% compared to 2020
Multiple new distribution channels for MPXI products added in Europe and Canada
Management Commentary
The Corporation is encouraged by some key developments as it pertains to MPXI's growth trajectory and its realized cost efficiencies. Losses from operations prior to fair value adjustments, amortization, share based compensation and other income/expenses for the three months ended March 31, 2021 of $2,281,309 represents an improvement of 29% over the comparable period (March 31, 2020 of $3,203,912). Similarly, for the six months ended March 31, 2021, losses from operations prior to fair value adjustments, amortization, share based compensation and other income/expenses were $3,629,810 versus $7,360,739 for the six months ended March 31, 2020, representing a 51% improvement. The favourable revenue growth combined with the implementation of a more sustainable cost structure has positioned the Corporation to be better able to take advantage of current opportunities.
Corporate Highlights for the Three Months Ended March 31, 2021
MPX International Closed Seventh Tranche of the Offering
On February 11, 2021, the Corporation closed the seventh tranche (the ' Seventh Tranche') of a non-brokered private placement offering (the 'Offering') of units (the ' Units').
The closing of the Seventh Tranche resulted in the issuance of 125 Units at a price of US$1,000 ($1,360) for aggregate gross proceeds of $170,000 (US$125,000). No finder's fees were paid in connection with the Seventh Tranche.
As of the date hereof, the Corporation has issued a total of 7,500 Units for aggregate gross proceeds of $10,200,000 (US$7,500,000) from the closing of all seven tranches of the Offering.
Each Unit consists of one 12% secured convertible debenture of the Corporation (a 'Debenture') in the principal amount of US$1,000 (the 'Principal Amount') and 7,000 common share purchase warrants (each, a 'Debenture Warrant'). The Debentures will have a maturity date of twenty-four (24) months from the date of issuance, subject to certain conversion privileges (the 'Maturity Date') as set forth in a debenture indenture (the ' Debenture Indenture'), as amended, supplemented or otherwise modified from time to time, entered into with AST Trust Company (Canada) ('AST'). Each Debenture will rank pari passu in right of payment of principal and interest with all other Debentures issued under the Offering.
The Corporation used the proceeds from the Offering to fund product and facility development as well as for working capital and other general corporate purposes.
Each Debenture bears interest at a rate of 12% per annum from the date of issue, payable quarterly in arrears on the last day of March, June, September and December in each year (each, a ' Coupon Date'). Currently, all accrued but unpaid interest as of each Coupon Date shall be payable by the Corporation in cash and shall accrue interest at a rate of 12% per annum.
The Principal Amount is convertible, for no additional consideration, into common shares of the Corporation (the ' MPXI Shares') at the option of the holder at any time prior to the earlier of: (i) 6:00 p.m. (Eastern Standard Time) on the Maturity Date; or (ii) the business day immediately preceding the date specified by MPXI for redemption of the Debentures at a conversion price equal to $0.12 per MPXI Share.
Each Debenture Warrant entitles the holder thereof to purchase one MPXI Share (each, a 'Debenture Warrant Share') at an exercise price of $0.20 (the 'Exercise Price') for a period of twenty-four (24) months from the Closing Date (the 'Expiry Date'). The Corporation and AST entered into a warrant indenture (the ' Warrant Indenture'), as amended, supplemented or otherwise modified from time to time, pursuant to which the Debenture Warrant Shares were created and issued.
MPXI announced the launch of European CBD E-Commerce Platform CBDetc.com
On February 23, 2021, the Corporation announced that it launched CBDetc.com ('CBDetc'), a European CBD e-commerce platform. CBDetc has been designed as a highly-curated, multiband e-commerce platform intending to be Europe's leading, reliable source for everything CBD. CBDetc will allow MPXI to increase its penetration into the broader European CBD market.
CBDetc, designed and built by the Corporation's team in Switzerland, features a wide range of products including CBD oils, cosmetics, intimacy products, vape products, edibles, hemp-based clothing, accessories and much more. It lists MPXI's Swiss made products, under the brand names 'Holyweed' and 'beleaf' as well as a carefully selected product range sourced from suppliers around the world.
Canveda entered into a Supply Agreement with the Ontario Retail Cannabis Corporation
On March 2, 2021, the Corporation announced the entering into of an agreement dated February 17, 2021 (as amended and supplemented on April 16, 2021), between Canveda Inc. ('Canveda') and the Ontario Retail Cannabis Corporation, operating as the Ontario Cannabis Store for the supply of cannabis under Canveda's recreational brand, Strain Rec. The agreement will continue until April 16, 2023, unless terminated earlier and may be extended upon mutual agreement of the parties for an unlimited number of successive two (2) year terms.
Canveda entered into a Supply Agreement with the BC Liquor Distribution Branch
On March 15, 2021, the Corporation announced the entering into of an agreement dated February 24, 2021 between Canveda and the BC Liquor Distribution Branch, the sole wholesale distributor of non-medical cannabis in British Columbia for the supply of cannabis under the Strain Rec brand. The agreement will continue until August 14, 2022, unless terminated earlier and may be extended upon mutual agreement of the parties for an unlimited amount of successive two (2) year terms.
About MPX International Corporation
MPX International Corporation is a multinational diversified cannabis company focused on developing and operating assets across the international cannabis industry with an emphasis on cultivating, manufacturing and marketing products which include cannabinoids as their primary active ingredient. With current operations spanning four continents in Canada, Switzerland, South Africa, Malta and Australia as well as evolving partnership and distribution opportunities in other jurisdictions, MPXI continues to position itself as an emergent global participant in the cannabis industry.
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; the Corporation's ability to effectively deal with the restrictions, limitations and health issues presented by the COVID-19 pandemic; future cannabis pricing; cannabis cultivation yields; costs of inputs; its ability to market products successfully to its anticipated clients; reliance on key personnel and contracted relationships with third parties; the regulatory environment in Australia, Canada, Malta, South Africa, Switzerland and other international jurisdictions; the ability to complete any future potential transactions and the terms and conditions thereof; the application of federal, state, provincial, county and municipal laws and the impact of increasing competition; those additional risks set out in MPX International's public documents filed on SEDAR at www.sedar.com, including its audited annual consolidated financial statements for the financial years ended September 30, 2020 and 2019, and the corresponding management's discussion and analysis 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.
Contact:
W. Scott Boyes
Tel: +1-416-840-4703
Email: info@mpxinternationalcorp.com
MPX INTERNATIONAL CORPORATION 
