TORONTO, ONTARIO – TheNewswire - April 30, 2021 – MPX International Corporation (“MPX International”, “MPXI” or the “Corporation”) (CSE:MPXI); (CNSX:MPXI.CN); (OTC:MPXOF), a multinational diversified cannabis company, is pleased to announce that it has closed on the second tranche of a short-term loan financing (the “Bridge Loan”) of up to approximately C$3,750,000 (US$3,000,000) from a group of current investors. The Corporation has drawn down on a total of C$2,575,000 (US$2,060) loan funds from both tranches as follows: (a) 1st Tranche which closed on April 21, 2021 - C$1,312,500 (US$1,050,000); and (b) 2nd Tranche  which closed on April 30, 2021 – C$1,262,500 (US$1,010,000). The Corporation expects to the draw down on the remaining funds in prior to the end of the Corporation’s 3rd quarter on June 30, 2021.

The Corporation will use the proceeds from the loan to fund product and facility development and for general corporate and working capital purposes.

The Bridge Loan will mature 3 months from the date of issuance (the “Maturity Date”) and bear interest at a rate of 12% per annum calculated in arrears and payable in cash on the earlier of the Maturity Date or concurrently with the conversion of the Bridge Loan into the non-brokered private placement offering of units (the “Units”) whereby the Corporation raised C$10,200,000 (US$7,500,000) between June 30, 2020 and February 11, 2021 (the “Offering”) pursuant to the debenture indenture dated June 30, 2020 entered into between the Corporation and AST Trust Company (Canada) (the “Debenture Trustee”) as amended by the supplemental debenture indenture dated September 16, 2020 and the second supplemental debenture indenture dated December 18, 2020 (as amended, supplemented or otherwise modified from time to time) providing for the issuance of 12% secured convertible dentures of the Corporation (each, an “SCD”) in the aggregate principal amount of up to C$10,200,000 (US$7,500,000) (the “Debenture Indenture”) the warrant indenture dated June 30, 2020 entered into between the Corporation and AST Trust Company (Canada) (the “Warrant Agent”) as amended by the supplemental warrant indenture dated September 16, 2020 and the second supplemental warrant indenture (the “Warrant Indenture”) dated December 18, 2020 (as amended, supplemented or otherwise modified from time to time) providing for the issuance of up to 52,500,000 common share purchase warrants (each, an “SCD Warrant”).

Upon the entering into of both the 3rd supplementary debenture indenture to the Debenture Indenture and the 3rd supplementary warrant indenture to the Warrant Indenture, the principal amount of the Bridge Loan shall automatically convert in the Offering at a conversion premium equal to ten percent (10%) of their principal amount.

Each Unit of the Offering will be issued on the same terms as those previously announced, subject to certain amendments to the Debenture Indenture and Warrant Indenture to be proposed to Debentureholders, at a price of C$1,360 (US$1,000) per Unit with each Unit consists of one SCD in the principal amount of C$1,360 (US$1,000) (the “Principal Amount”) convertible at a deemed price of $0.13 per share and 7,000 SCD Warrants.

The Corporation shall pay a non-refundable cash origination fee in the aggregate amount of C$75,000 (US$60,000) to certain Bridge Loan lenders advancing funds in the initial tranches of the Bridge Loan at the time of such advance.

The Corporation shall also issue an aggregate of 9,000,000 common share purchase warrants (the “Bonus Warrants”) to certain Bridge Loan lenders advancing funds in the initial tranches of the Bridge Loan. Each Bonus Warrant shall be exercisable for a period of sixty (60) months from the date of issuance and enable the holder thereof to purchase one common share in the capital of the Corporation (a “Common Share”) at an exercise price equal to C$0.20 as well as the opportunity to acquire part of the Corporation’s interest in one or more potential future transactions.

Each of the following events constitutes an event of default: (a) the Corporation fails to pay when due, after any applicable grace periods, any outstanding principal amount hereunder or any accrued and unpaid interest on such principal amount; (b) the Corporation shall not have complied with its covenants; and (c) if any representation or warranty made by the Corporation pursuant to which the loan was issued was false or inaccurate in any material respect when made.

No finder fees have been paid in connection with the Bridge Loan.

About MPX International Corporation

MPX International Corporation is a multinational diversified cannabis company focused on developing and operating assets across the international cannabis industry with an emphasis on cultivating, manufacturing and marketing products which include cannabinoids as their primary active ingredient. With current operations spanning four continents in Canada, Switzerland, South Africa, Malta and Australia as well as evolving partnership and distribution opportunities in other jurisdictions, MPXI continues to position itself as an emergent global participant in the cannabis industry.

Cautionary Statement Regarding Forward-Looking Information

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, MPX International’s objectives and intentions.  Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; the Corporation’s ability to effectively deal with the restrictions, limitations and health issues presented by the COVID-19 pandemic; future cannabis pricing; cannabis cultivation yields; costs of inputs; its ability to market products successfully to its anticipated clients; reliance on key personnel and contracted relationships with third parties; the regulatory environment in Australia, Canada, Malta, South Africa, Switzerland and other international jurisdictions; the ability to complete any future potential transactions and the terms and conditions thereof; the application of federal, state, provincial, county and municipal laws; and the impact of increasing competition; those additional risks set out in MPX International’s public documents filed on SEDAR at www.sedar.com, including its audited annual consolidated financial statements for the financial years ended September 30, 2020 and 2019, and the corresponding management’s discussion and analysis; and other matters discussed in this news release. Although MPX International believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, MPX International disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

For further information about MPXI, please contact:

MPX International Corporation

W. Scott Boyes, Chairman, President and CEO

T: +1-416-840-4703
info@mpxinternationalcorp.com

or visit one our websites:

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