Market Overview

Discussing MPX International's South Africa Joint Venture With CEO Scott Boyes

Discussing MPX International's South Africa Joint Venture With CEO Scott Boyes
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By Javier Hasse and Eric TerBush.

MPX International Corp (OTC: MPXOF) recently announced entrance into an agreement with South African producer First Growth Holdings Ltd. that will lead to the acquisition of a 51% interest in the company.

Interested in the acquisition and the African market, Benzinga reached out to Scott Boyes, Chairman, President and CEO of MPXI to discuss what makes South Africa so desirable, how their legislation impacts cannabis and where MPXI sees future potential in other African Markets.

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MPXI’s African Venture

Launching a venture in an emerging market is risky. To launch a venture in an emerging market in an economically volatile continent is even more risky. MPXI chose to launch their new venture and face this risk. For MPXI, South Africa was the perfect country to establish a footprint.

“South Africa is more stable politically with a codified legal system, quickly evolving cannabis laws and a Western-style business climate," Boyes told Benzinga. "It is easier to attain EU-GAP certification than anywhere else in Africa and is also the home to many excellent and politically influential, agriculturally-experienced partners.

"MPXI has several shareholders who live in South Africa and have encouraged our investment there. They not only give us comfort by providing local advice and support but are also keen to see South Africa participate in the wealth creation that cannabis legalization is creating globally.”

Even without a helping hand, the winds of change echo through South Africa. The political landscape has rapidly transformed over the last decade, with a cultural shift towards progressive policy.

“With support from federal and local governments, cannabis laws are evolving quickly in South Africa," said Boyes. "New legislation not only ensures South Africa maintains agricultural standards that are capable of meeting Good Agricultural Practice Standards as defined by the European Union, but will accelerate revenue potential, especially with MPXI’s availability of high quality, CBD from Switzerland.”

See Also: South Africa Relaxes CBD Regulations: 'A Landmark Piece Of Legislation'

Future Expansion

Looking forward, Boyes said MPXI is taking an active look into other African countries for expansion. How they will compete in South Africa with Goodleaf, the first CBD store in the country?

“Currently, Goodleaf in South Africa is not yet fully established, but we plan to work in concert with Goodleaf to focus on exporting biomass and concentrates to Europe and Canada," said Boyes. "At the moment, we have a license for Zimbabwe and immediate potential for same in Lesotho but we are focused on South Africa for the above reasons.”

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Posted-In: Africa Cannabis AIM3 Ventures Goodleaf Scott BoyesCannabis Emerging Markets Markets Interview Best of Benzinga


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