MPX International Corp (OTCMKTS: MPXOF) has continued to race lower as bears continue to take the fight to the bulls. A 20% plus plunge from this year highs leaves the stock exposed to this year lows as short sellers continue to pile pressure.MPXOF Catalysts And Price AnalysisThe acquisition of Swiss-based HolyWorld SA is a development that could avert further slides in the market, on strengthening the stock’s sentiments in the market. The confirmation that the Company is willing to spend as much as $9.91 million to complete the acquisition affirms commitment to pursuing inorganic growth.In April, MPX International confirmed the acquisition of GMP-Ready Pharmaceutical facility in Malta as part of an effort of pursuing growth opportunities in the European Union. The acquisition spree is a development likely to spur investor confidence in the stock.While the stock is currently trading at the $0.46 level, it is closing in on the $0.44 support level. A sell-off followed by a close below the support level could give short sellers a reason to continue pushing the stock lower. MPXOF Daily ChartConversely, a bounce back from current lows will have to contend with resistance at the $0.50 level. A rally followed by a close above the resistance level could pave the way for the stock to power high as a bounce-back play.What Does MPX International Do?MPX International is a company focused on the medicinal and adult-use cannabis markets. The Company is engaged in the production and distribution of cannabis products including cannabis glowers, cannabis oil, concentrates and other reeled products.[embed]https://www.youtube.com/watch?v=xBK9-mrBnS0&t=2s[/embed]HolyWeed Brand AcquisitionAs the stock has continued to edge lower, the management has continued to strengthen MPX International long-term prospects by carrying out strategic acquisitions. The Company is fresh from completing the acquisition of HolyWorld SA that operates under the HolyWeed brand.With the acquisition, MPX International stands to expand its footprint into Europe as HolyWeed boasts of a robust distribution network made up of 4,000 kiosks across Switzerland. The Company is also in the process so broaden its footprint across the European UnionThe Merger should allow MPX to enjoy a first-mover advantage in Switzerland as part of its international expansion drive.
"Switzerland is home to some of the most advanced consumer goods, cosmetics, ingredients and pharmaceutical companies in the world, and Holy Weed being on their doorstep opens a whole host of future opportunities," said Daniel Fryer, MPXI's Head of European Development.
The acquisition marks an important milestone in the MPX International expansion strategy as it is poised to gain access to a highly recognized brand of CBD products. The Company is also poised to gain access to one of the largest Western European, outdoor cultivation facility for CBD flowers.HolyWeed comes into the deal with a diverse range of Swiss grown cannabis CBD pre-rolls as well as dry flowers and cosmetics. The Company also boasts of the official Swiss Certified Organic Label. It is also on course to harvest as much as 25,000kg of high CBD dry cannabis flowers.Malta AcquisitionIn a bid to further strengthen operations in Europe, MPX International recently completed the acquisition of GMP-Ready Pharmaceutical facility in Malta. The Company’s Maltese subsidiary MPXI Malta Property has also secured a license to import, extract, produce and distribute cannabis and its derivatives for medicinal purposes.MPXI International has already embarked on the production of EU-GMP quality cannabis oils and cannabis derivatives as it seeks to make good use of growing demand in the European Union.
“This is an important step in our European expansion plan. Malta not only provides a strategic gateway to the emerging EU markets but also upholds high pharmaceutical standards and a strong regulatory framework. We look forward to combining our cannabis expertise and intellectual property with some of Europe is leading pharmaceutical talent,'' said Daniel Fryer, MPXI's Head of European Development.
Bottom LineAcquisitions and international expansion are some of the developments that underscore MPX International long-term prospects. While the stock is down by more than 20%, the acquisition of HolyWeed and production facility in Malta should continue to spur investor confidence in the stock.Once the dust on the recent pullback cools down, the stock looks set to bounce back and trade higher as acquisitions and expansion drive are catalysts poised to push MPXOF higher.We will be updating our subscribers as soon as we know more. For the latest updates on MPXOF, sign up below!Disclosure: We have no position in MPXOF and have not been compensated for this article.
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