ZA: Agreement completed for cannabis joint venture in South Africa

MPX International Corporation has completed definitive agreements pursuant to the previously announced joint venture to establish low-cost cultivation using hi-tech greenhouses on the Sonop Farm, which is located in the traditional wine-growing region of Stellenbosch in South Africa’s Western Cape approximately 50 kilometres east of Cape Town. "The biomass produced from the Company’s operations in South Africa are expected to primarily support MPXI’s operations in Malta. Upon receipt of a license to import, extract, produce finished products and distribute cannabis and cannabis derivatives, MPXI Malta Operations Ltd., a subsidiary of the Company, will produce EU-GMP quality cannabis oils and cannabis derivative products and pursue regulated medical cannabis distribution opportunities in Europe through Salus BioPharma Corporation, a wholly-owned subsidiary of the Company, as well as in Canada and Oceania," the team with the company explains. 

"Pursuant to the terms of the definitive agreements, MPXI has acquired an 80% interest in First Growth Holdings with the remaining 20% held by Simonsberg Cannabis, whose shareholders include a prominent local winery continuing MPXI’s string of successful local partnerships.

"First Growth has applied under the Medicines and Related Substances Act, No. 101 of 1965 (South Africa) for a license to cultivate cannabis from the Sonop Farm (the “License”) from South African Health Products Regulatory Authority (“SAHPRA”). Construction commenced on the first cultivation phase of the project in September 2019 on an initial half hectare (approximately 54,000 square feet) with full development of the project resulting in up to six hectares (approximately 646,000 square feet) of advanced EU-Good Agricultural Practices (“EU-GAP”) certified greenhouse cultivation and EU-Good Manufacturing Practice (“EU-GMP”) certified extraction and processing laboratory."

“As part of our strategy to create a cost-effective global supply chain, MPXI needed to create a source of high-quality, but low-cost cannabis biomass which could be easily exportable to Europe and other high- value cannabis markets,” commented W. Scott Boyes Chairman, President and CEO of MPXI. “We explored several potential cultivation jurisdictions taking into consideration relative production costs, sovereign risk, comparative ability to achieve GACP and EU-GMP certifications, readily-available infrastructure, governmental and legislative support for cannabis projects, the stability of the business environment and the availability and quality of local management/partnerships. South Africa, and the Western Cape, in particular, proved to be the best venue with high marks in each category.”

For more information:
MPX International Corporation
5255 Yonge Street, #701, North York M2N 6P4
416-840-3725
info@mpxbioceutical.com  
mpxbioceutical.com   


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