Ontario-based MPX Bioceutical Corporation (MPXEF) announced that it has entered into an agreement valued at $15 million to acquire 100% of the membership units of ABACA, LLC, Ambary, LLC, Tarmac Manufacturing, LLC and Tower Management Holdings, LLC. ABACA is a fully-integrated medical marijuana business licensed under the provisions of the Arizona Medical Marijuana Act, A.R.S. Title 36, Section 28.1 operating a dispensary under the trade name “The Holistic Center” in Phoenix, Arizona plus certain real estate properties in Phoenix.
“This acquisition represents a solid addition to our industry and presence in Arizona, a State that offers MPX one of the best-regulated, yet industry-supportive markets in the country,” said W. Scott Boyes, MPX’s Chairman, President, and CEO. “The entities being acquired have recorded trailing 12-month revenues of US$15 million and EBITDA of approximately US$3.5 million and its results will be immediately accretive to MPX earnings. Furthermore, the acquired companies are well-managed and will allow both parties to share best practices and benefit from the ability to share purchase economies.”
With the acquisition of The Holistic Center, MPX adds its third operating medical cannabis enterprise to its footprint in Arizona. MPX continues to expand its U.S. footprint and has recently acquired management companies that provide operational and other services to three dispensaries and one production license in Maryland. MPX also owns assets in Massachusetts supporting cultivation, production and up to three dispensaries.
“With the pending opening of our Apache Junction dispensary, the addition of the Holistic Center will bring the number of dispensaries managed by MPX in the greater Phoenix market to four, will more than double our cultivation capacity and will materially complement our management team in the State,” said Boyes. “Adding to our critical mass of operations, this acquisition will add to MPX’s ability to benefit from purchasing economies, spread the administrative overhead costs over a larger revenue base and provide cash flows to support additional growth.”
The Company will hold an investor call at 10:00 AM Eastern Standard Time on Thursday, March 8th to discuss this acquisition and MPX’s third-quarter results.