MPX Bioceutical Corporation (CSE.MPX) (OTC.MPXEF) secured a $40 million convertible loan on Tuesday to fund future expansion. The convertible loan will also be invested in acquisitions and new production licenses in both the United States and Canada.
MPX, which is based out of Ontario, operates production facilities and dispensaries in the United States. Their wholly-owned American subsidiaries include GreenMart of Nevada, a chain of dispensaries, and Melting Point Extracts, a cannabis oil wholesale operation
The company plans to break ground on more facilities in Maryland and Massachusetts shortly.
According to a statement, the company is looking at “multiple expansion opportunities” across the United States and Canada. President and CEO of MPX W. Scott Boyes noted that the pace of the cannabis industry inspired shareholders to embrace the new loan “without the need for the involvement of an investment bank.”
“We are also witnessing the emergence of significant consolidation activity as several larger North American industry participants have made announcements regarding transactions that would result in larger national, or international, footprints for the combined entities,” Boyes added on Tuesday. “Larger cannabis entities will facilitate more effective brand awareness, product development, and cost efficiencies. These are exciting times for our industry and having access to capital is critical for MPX to exploit the growth opportunities presented by this market.”
The opportunities are rife for a pot stock like MPX. As a vertically-integrated cannabis company, MPX Bioceuticals is poised to reap the benefits of their range in this market. Melting Point Extracts, in particular, could set them apart from other pot stocks.
Why The Fuss Over Extraction?
Cannabis extraction is low-cost and widely available, making cannabis oil easy and profitable for cannabis companies to produce. But the longer and more in-depth the extraction process, the more potent the cannabis oil will be.
Melting Point Extracts uses three different extraction processes to produce cannabis oil. They specialize in hydrocarbon, CO2, and solventless extraction. Hydrocarbon, which uses butane to strip the marijuana plant of its desirable oils, is the more popular (and most efficient) extraction method in the cannabis industry.
Melting Point also uses CO2 extraction, a more in-depth process when compared to hydrocarbon. Heat is applied to the carbon dioxide until it becomes a liquid. In liquid form, the CO2 can be processed with granulated weed and extract the desired THC and CBD compounds.
Solventless extraction is much more involved but can create even more potent cannabis oil. The process does not require traditional solvents like butane or carbon dioxide. Instead, Melting Point Extracts uses extreme pressure and heat to extract the oils from marijuana.
What Does This Mean For MPX Bioceuticals?
Utilizing three different processes gives Melting Point Extracts the ability to produce different types of oil of varying potency for different kinds of consumers. These oils are available in Arizona and Nevada through MPX’s dispensary chains.
It is possible that establishing a market in Arizona and Nevada could place MPX Bioceuticals at the forefront of the industry in America, especially with support for medical and recreational cannabis burgeoning throughout the country. Earlier this year, a poll showed that over 40 percent of Arizonans would vote in favor of state regulations and taxations on marijuana. It makes for interesting news when combined with a recent report that MPX had record-breaking monthly revenue of $4 million last month just in Arizona alone.
With access to a market this diverse, MPX Bioceuticals has some serious potential. Their plans for expansion are smart and speak volumes about the trends in this industry.