Arizona: In April 2018, MPX opened its third dispensary in the Phoenix metropolitan area under the Company’s “Health for Life” brand. Additionally, MPX completed the relocation of its Mesa, Arizona processing and production facility to a new location in North Mesa, Arizona and continued to ramp up concentrate production at this facility.
Maryland: In June 2018, final licensing approval was secured from the Maryland Medical Cannabis Commission to operate MPX’s first dispensary in Maryland under the Health for Life brand. The dispensary, operated by MPX’s indirect wholly-owned subsidiary, S8 Management, LLC, welcomed its first patient in August, 2018.
In August 2018, two additional dispensaries managed by S8 Management also received licensing approval in Maryland. The Company’s concentrate production center, which is owned by Rosebud Organics and operated by MPX, commenced operations during the fiscal quarter, with the first MPX wholesale products arriving on third party dispensary shelves in August.
Massachusetts: The Company owns the majority of Massachusetts-based cannabis management company IMT, LLC (“IMT”) and real estate holding company, Fall River Developments, LLC (“FRD”). While not cultivating or selling cannabis products itself, IMT has a long-term management agreement to provide material support to Cannatech Medicinals Inc. (“CMI”), which is licensed to directly cultivate, produce, own, possess and sell cannabis and cannabis-infused products. The Company has completed construction of the first of three planned dispensaries, and expects that two of its three planned dispensaries will be fully operational during the fourth quarter of calendar 2018. It is also in the process of constructing a cultivation and processing facility, which is owned by FRD and will be operated by the Company. The Company expects to commence cultivation at this facility during the third quarter of calendar 2018.
California: In July 2018, the Company entered into an extraction agreement with Case Farms Collective, the largest cannabis processing facility in Southern California, marking MPX’s entry into the State of California. Case Farms will provide full scale cannabis processing services to MPX, with all concentrate products manufactured to MPX’s proprietary specifications and guidelines. The agreement significantly increases MPX’s distribution reach as Case Farms will distribute the MPX-branded cannabis concentrates to its network of licensed dispensaries throughout California.
Canada: In June 2018, MPX completed the acquisition of 8423695 Canada Inc. operating as Canveda, a licensed producer under Health Canada’s Access to Cannabis for Medical Purposes Regulations. Planting has commenced at Canveda’s fully built-out 12,000 square foot facility, located in Peterborough, Ontario, and the first crop should be ready for sale during the fiscal third quarter of 2019. 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. Furthermore, the Company is working to expand its arrangement with Panaxia Pharmaceutical Industries Ltd. The Company plans to manufacture Panaxia’s products at its Owen Sound site and to market these products to patients in Canada, and potentially for export, under MPX’s Salus Biopharma brand.
