VIDEO: MPX Bioceutical Updates their Aggressive USA Expansion Activities
CEO Scott Boyes talks about MPX Bioceutical Corp. (CNSX:MPX) (OTCMKTS:MPXEF) (FRA:5CB) .MPX is expanding rapidly in the United States with business operations in Maryland, Arizona, Massachusetts, and Nevada. Scott predicts massive growth overall in the USA in the next couple of years as well as major consolidation of businesses in the sector. MPX has a goal of being in 10 states total by the end of the year.
James West: Scott, welcome back.
Scott Boyes: Thanks, James.
James West: Let’s talk a bit about what’s happened with Canadian Bioceuticals since you were here last. You at that time had two dispensaries operating in Arizona, you had licensing happening in Massachusetts…what has happened since then?
Scott Boyes: James, since then we’re on the edge of opening a third dispensary in Arizona. We’ve got another acquisition that we’ve pre=announced that is imminent in Arizona that will increase our size there by about two-thirds. We’ve opened a new space to double our production of MPX concentrates, up to about 2 million grams per annum. We’ve started to build out three dispensaries in Massachusetts; we’re building out 40,000 square feet of cultivation and production space in Fall River, Massachusetts.
We’ve virtually completed the buildout of three dispensaries in Maryland, and we’ve built out and opened a full production site for MPX concentrates in Maryland, and we’ve acquired a production and cultivation facility in North Las Vegas, Nevada.
James West: Boy, nothing slow about MPX!
Scott Boyes: No. All this since January of last year.
James West: Great, that’s interesting! Congratulations. So, are you growing all of this organically, or are you actually in the midst of a consolidation play here?
Scott Boyes: It’s both. In new states, like Massachusetts and Maryland where the programs were just launched, we’re building out new facilities and we’ll grow with the market. In Nevada and the new Arizona acquisition, they’re fully operating facilities and we acquired them operating.
James West: Okay. So how many US consumers do you now have exposure to through your collective operations?
Scott Boyes: Even in Massachusetts alone, because it’s going full recreational in July, they’ve estimated the market size, given the states surrounding it, at about 26 million. 40 million people a year come into Las Vegas, and we’re selling into that market. There’s about 6 million people in Maryland, and another 6 million people in Arizona, so we’ve probably got 50 or 60 million people that’ll be within reach of one of our dispensaries.
James West: Sure. So you’re probably in one of the best positions to opine on what effect has the rescinding of the Cole Memo by Attorney General Jeff Sessions had on the actual evolution of the industry? One would think not much, judging by your growth.
Scott Boyes: You know, the first day it came out, we saw a little bit of dip in stock price; it recovered quickly over the next couple days, and it’s had very little effect. In fact, if anything it may well have pushed Congress into putting forth some more permanent solutions to facilitate the growth of the industry in the United States. I mean, RQ is projecting that by the year 2021, there’ll be approximately 400,000 jobs committed to the industry, generating about $400 billion of economic activity using the multiplier, and over 43 million of taxes being paid into several states. So it’s a pretty significant evolution.
James West: As far as you’re concerned, in your awareness, has there been a single incident since Jeff Sessions announced the rescinding of the memo on January 4th, a month ago or better, of any amplified action on the part of the Feds trying to shut down the industry?
Scott Boyes: None that we’re aware of. Absolutely not. In fact, we’ve seen what’s happening in California; the industry continues to grow. We sense that there’s some consolidation going on in the sector. I think that’s going to result in some much larger companies that’ll have a little more clout both from a lobbying perspective and political clout; if Congress is moving towards, as we said, pieces of legislation that will help protect the industry.
The Roebuck-Baumhauer amendment is still in force until February 8th or 9th, whenever the budget extension, and we’ve got it on pretty good sources from people pretty high up in the Democratic Party that they will not support any budget changes that in any way impairs the industry going forward.
James West: So the support is broad.
Scott Boyes: Support is broad. 62 percent of Republicans are polled to be in favour of it now.
James West: Sure.
Scott Boyes: And a massive amount of Democrats. I mean, there’s over 68 million people live in states where it’s recreational-legal, so you can’t put the genie back in the bottle.
James West: Sure. Okay, let me ask you then: has the access to capital been slowed down at all for MPX, specifically?
Scott Boyes: We just raised another $27 million; we raised it in December. Much of it we raised in Europe, of course, which has been the source of most of our funding. So between debt and equity, we’ve raised almost $100 million USD so far, and I don’t see any problem in raising more capital as we need it going forward.
James West: Great. So what are your ambitions for future states, future acquisitions, at this point?
Scott Boyes: Well, we wanted to be in 10 states by the end of the year. We’re working aggressively on getting licenses in New Jersey; in fact, my COO in the US has arranged for a conference in Las Vegas this week, we’re bringing in people from the governor’s office in New Jersey, meeting up with a couple state senators in Nevada to kind of help them draft rules for a recreational program in New Jersey. That’s a target for us.
We’ve got license applications in Ohio, and once again I think you’ll find there’s a fair amount of consolidation in the next 12 months in the US market, and we’d like to be a part of that.
James West: Wow. Great, well, congratulations on your progress. We’ll keep watching. Thanks for coming in again, Scott.
Scott Boyes: A pleasure, James.
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