MPX Australia will be able to cultivate medical cannabis and resin in its unfinished 70,000 square foot cultivation facility in Tasmania.
A Canadian cannabis firm with Australian operations has become one of the latest players to be approved for cannabis cultivation in Australia.
Ontario-based MPX International (CSE:MPXI,OTC Pink:MPXOF) confirmed on Monday (January 27) that its wholly owned subsidiary MPX Australia has been granted a medicinal cannabis licence by the Australian Office of Drug Control (ODC).
With the newly issued licence, MPX Australia will be able cultivate medical cannabis and produce cannabis resin, as well as test, package and ship its products from its 70,000 square foot cultivation facility in Launceston, Tasmania, which is still under construction.
MPX International has experienced an upswing in value since it announced its subsidiary is breaking into the Australian cannabis sector. It went up 10.9 percent from the beginning of the week to the start of the trading session on Tuesday (January 28). As of 9:35 a.m. EST, shares sat at C$0.36.
Scott Boyes, CEO of MPX International, said in a press release that Australia will act as a crucial entry point for the company into the larger Oceania and Asia-Pacific cannabis markets.
Executive Director Tibor Vertes echoed the sentiment from Boyes, adding that MPX Australia offers a “strong foothold” into the country’s nascent marijuana industry.
Vertes also said the company wants its new Australian licence to lead to the creation of brand awareness and a possible future export gateway for its Australian subsidiary.
The firm told investors about another licence approval in November 2019, when it got its hands on an official manufacture licence from the ODC for its Tasmania facility.
The site is scheduled to be in production by mid-2020, and it will be outfitted for indoor cultivation, extraction and manufacturing of medical cannabis products, according to Boyes.
Boyes credited Tasmania’s reputation for high-quality organic products and its supportive local government as key points in choosing the island for the base of its Australian operations.
In its Q3 2019 results, MPX International reported total revenue at C$674,745, while showing a net loss from operating activities of C$6.3 million.
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Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.