Global cannabis company MPX International Corp MPXOF said Tuesday that it had completed the acquisition of Swiss-based HolyWorld SA, which operates under the HolyWeed brand.
What Happened
MPX International Corporation agreed to pay 10 million Swiss francs ($9.91 million) to HolyWeed shareholders Romain Grunder, Bernard Rappaz and Laurent Rappaport.
The buyer issued 25.25 million shares at $0.53 Canadian dollars (39 cents) each to the shareholders, with 80 percent placed in voluntary escrow.
Twenty percent of the newly issued shares will be released from escrow upon the official launch and sale of CBD oil on HolyWeed's e-commerce platform, MPX said.
Another 20 percent will be released when an annualized revenue run-rate of 5 million Swiss francs is reached. The remaining 40 percent will be released when HolyWeed achieves EBITDA of 1.6 million Swiss francs for the 12-month trailing period.
If the release conditions are not satisfied by June 30, 2021, the shares that are still in escrow will be released back to MPX International for cancellation, the company said.
Why It's Important
HolyWeed is the only CBD brand in Switzerland that has received the official Swiss Certified Organic label.
The company's products include Swiss-grown cannabis light/high CBD pre-rolls; dry flowers; sublingual oils; and cosmetics. Later this year, HolyWeed plans to harvest over 25,000 kilograms of high-CBD dry cannabis flower.
HolyWeed has a wholesale distribution network of more than 4,000 kiosks across Switzerland. Its products can also be ordered online and delivered across the country within 24 hours free of charge.
HolyWeed plans to expand to more markets in Europe, according to Tuesday's announcement.
Under Swiss regulations, cannabis products are legal if they contain less than 1 percent of THC.
What's Next
Following the acquisition, MPX said it plans to develop a GMP-certified manufacturing facility for CBD extract and isolate production in Switzerland for both HolyWeed and export.
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