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MPXEF: We understand that the $10 per gram guideline is for dried flower only and the sale of flower will never be our focus. We are looking at different ways to optimize profitability in our Canadian operations and we look forward to updating shareholders when we have made firm decisions.
CIM: You have leased a 72,342 square foot facility that allows for future expansion of an additional 402,658 square feet in Owen Sound, Ontario, that at last report was in the Detailed Review and Initiation of Security Clearance Process stage. This facility has capacity for approximately 8,000 kg per year of dry flower and over 300 kg per year of concentrates. Can you provide our readers with an update on what stage this is in for construction, as well as on your application status? And secondly, what was the strategy in choosing Owen Sound as MPX’s base for production in Canada?
MPXEF: We have strong support from the community in Owen Sound, including the municipality and other business owners. It is a good jurisdiction to do business in, with close proximity to larger centres and a strong employment pool.
Much of the infrastructure for the building (power, water etc.) is already in place and we are currently negotiating for the financing and contracting of further development of the facility.
CIM: MPX recently closed a very successful private placement for $26.5M, oversubscribing by about $1.5M, and are in the process of closing a second and final tranche shortly, can you provide shareholders or potential investors with a glimpse into your plans for these funds?
MPXEF: Our recent private placements further strengthen our balance sheet and provide with us more than adequate capital to execute on the strategies that we believe are going to help us grow and deliver on our mission to become a dominate multi-state player. The bulk of the funds are targeted for the acquisition of another Arizona entity and we expect to close that transaction imminently.
CIM: With more and more Licenses being approved by Health Canada and a predicted supply shortage looming once the legal adult recreational markets comes into being, what is MPX’s key differentiating factor?