Merger: Shareholders Should Receive More For MPX Bioceutical Cannabis Merger: Shareholders Should Receive More For MPX Bioceutical
MPX Bioceutical is a multinational diversified cannabis company operating in the medical and cannabis markets.
The company reported $19.74 million in March 2018, 395% more than that on March 31, 2017. The gross profit is also quite significant, equal to $8.6 million.
The deal with iAnthus does not seem to be interesting for MPX shareholders. They should decline it.
With an impressive growth in the amount of assets and revenue, MPX Bioceutical should be valued at much more than $640 million. Many other players in the industry are trading at large EV/Sales ratio.
It seems obvious that they should make much more money if MPX Bioceutical remains independent.
With a stable financial situation and 395% revenue growth y/y, MPX Bioceutical (OTCQX:MPXEF) is a very interesting name that cannabis investors should assess. The recent deal with iAnthus Capital Holdings, Inc. (OTCQX:ITHUF) valued the company at $640 million, which seems too little. Assuming forward revenues of $114 million, the enterprise value should be larger than that. The deal should not interest shareholders. The company could deliver more returns if it remains independent.
Business and Business Structure
Founded in 1974 and headquartered in Ontario, Canada MPX Bioceutical is a multinational diversified cannabis company operating in the medical and cannabis markets.
Source: Company’s Website
The stock trades in the OTC Markets, thus it may not be well-known. However, with five dispensaries, two cultivation facilities and one production facility in Arizona, it is not a small player. The group also has large amount of subsidiaries operating in Canada, Australia, and the United States. Have a look at the image below for further details: