5 Canadian Cannabis Updates That Impacted Shares

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

The Canadian cannabis sector recently came off its highs and investors are closely monitoring the recent pullback. Prior to this weakness, Canadian cannabis stocks were in rally mode and we remain bullish on these moves.

Over the last week, several significant company announcements have been reported and today, we have highlighted five important company updates that cannabis investors need to be aware of.

MPX: Increases Market Share in the United States

MPX Bioceutical (MPX.CN) (MPXEF) has fallen more than 15% from its February highs and we are monitoring the recent decline. We have been bullish on MPX and continue to see upside to current levels as the company continues to execute flawlessly on growth initiatives.

Earlier this week, MPX’s subsidiary, CGX Life Sciences, expanded its reach in Arizona after entering a definitive limited liability membership interest and asset purchase agreement to acquire 100% of ABACA, LLC, Ambary, LLC, Tarmac Manufacturing, LLC, and Tower Management Holdings, LLC.

ABACA is a fully-integrated medical marijuana business licensed in Arizona that operates a dispensary under the name The Holistic Center in Phoenix, Arizona as well as certain real estate interests located in Phoenix. Today, MPX will hold an investor call at 10am EST to discuss this acquisition and MPX’s third quarter results.

In return for the acquisition, MPX is paying $15,000,000 in cash and stock ($12 million cash). The company will issue $3 million worth of stock (5,704,479 common shares) and 4,700,000 common share purchase warrants (at $0.67 for five years). In addition, CGX has a contingent liability of up to $6,000,000 payable to the sellers solely out of the proceeds of the revenue generated from the contract between Tarmac and Timeless Select, LLC.

MPX is laser focused on several emerging legal marijuana markets in the United States and we are bullish on this focus. Although the shares have come off its highs, they are still up a considerable amount in the last six-months (up 128%). We are monitoring the recent decline and believe it has created a great opportunity for new investors. This is a stock to watch!

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Disclosure: This report was authored by and is property of Technical420.All information and data relied upon in drafting this report is publicly available.The author believes and considers its ...

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