86
Q& A
Spiro Sertsis: CIM
Scott Boyes: MPXEF
OTC: MPXEF;
CSE: MPX
HVST)
HVST)
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CIM: While advertising regulations are currently being ironed out in Canada with Bill C-45, it is anticipated that these will be a lot more restrictive than in the U.S. Part of building future growth for your organization and increasing shareholder value is to develop best-in-class cannabis production, branding and sales and marketing practices. Given that MPX strives for and has achieved excellent brand equity already, what challenges, if any, do you see for your products and brands in the Canadian market and achieving optimal shareholder value here in Canada?
MPXEF: Our brands are continuing to gain traction in the U.S. and we anticipate that brand equity will translate to the Canadian market when the time is right. We are continuing to evolve our Canadian strategy ahead of the opening of the adult recreational use market in July 2018.
CIM: Part of MPX strategy includes owning dispensaries in the U.S. The recently announced Ontario model is for government-run store fronts, which of course precludes MPX from following the same business model here – what are your thoughts on this model of distribution? How would this impact on MPX’s strategy in Canada?
MPXEF: While the government run storefront model is different from that of privately run dispensaries, we believe strong brand equity from U.S. operations will extend to the Canadian market. While we see the government retail direction in Ontario to be regressive and flawed, we are continuing to look at our Canadian strategy and will strongly consider the regulatory environment as we roll out our plans.
CIM: MPX sells at an average of $14.76 per gram at your dispensaries in the U.S. In Canada, prices will be fixed at $10.00 per gram, obviously that’s significantly lower on the revenue side. How do you plan to optimize profitability in the Canadian market?