Toronto-based MPX International Corporation has entered into a definitive agreement to purchase all outstanding shares of HolyWorld SA (better known as ‘HolyWeed’) from shareholders Romain Gruner, Bernard Rappaz and Laurent Rappaport.
Co-founded in 2017 by celebrity Swiss cannabis pioneer Bernard Rappaz, HolyWeed is the only Swiss CBD brand officially ‘Swiss Certified Organic’ – and is one of the largest Western European outdoor cultivators of high-CBD flowers.
MPXI will acquire all of the HolyWeed shares for a total purchase price of CHF10,000,000 (CDN$13,384,000) . The all-stock purchase will be accomplished through the issuance of common shares of MPXI at price of CDN$0.53 per MPXI Share.
The news comes in the same month that MPXI raised US $20m to fuel international expansion.
MPXI will issue approximately 25,252,830 MPXI Shares to the shareholders of HolyWeed which number shall be adjusted upwards or downwards to the extent necessary using the exchange rate posted at the close of business by the Bank of Canada five days prior to closing.
HolyWeed’s product range includes 100% Swiss grown cannabis light/high CBD pre-rolls, dry flowers, sublingual oils and cosmetics, all compliant with Swiss regulations of <1% THC. The firm will be harvesting over 25,000kg of high-CBD dry cannabis flowers later this year.
HolyWeed’s wholesale distribution network spans more than 4,000 kiosks across Switzerland and will soon expand to wider export markets across Europe.
Complementing the acquisition, MPXI will develop a GMP-grade manufacturing facility to produce CBD extracts and isolates for both HolyWeed and export. The facility will feature a full-scale commercial kitchen and a formulation R&D laboratory, giving MPXI the ability to develop innovative CBD products and to collaborate with local partners.
“Switzerland is home to some of the most advanced consumer goods, cosmetics, ingredients and pharmaceutical companies in the world, and HolyWeed being on their doorstep opens a whole host of future opportunities,” said Daniel Fryer, MPXI’s Head of European Development.
In February of this year, the Swiss government announced plans for a pilot test which would result in temporary licenses for local cannabis companies to produce and sell higher THC marijuana for adult consumer use within a regulated framework. Final details of the program are to be released later this year.
“The acquisition of this exciting Swiss participant in the emerging European cannabis market represents our first foray outside of Canada” noted W. Scott Boyes, MPXI’s Chairman, President and CEO. “HolyWeed brings to our company a strong local management team, a well-recognized brand of products and a solid opportunity to expand into other legal ‘cannabis-light’ markets in Europe.”
“Merging HolyWeed with MPXI represents a unique opportunity to leverage our first-mover advantage in Switzerland and to develop our operations internationally with the support, expertise and best-in-class track record of the MPXI management team” remarks Bernard Rappaz, co-founder of HolyWeed. “I am delighted and excited to continue my life long mission to offer to the world the fantastic benefits of cannabis”.Cannabis Business Worldwide