On March 1, 2018 the MPX Bioceutical Corporation (CSE:MPX) (OTCQB:MPXEF) reported financial results for its fourth quarter period ended December 31, 2017 (third quarter according to internal company record keeping – see table, below):
As the company’s activities were nearly exclusively related to cannabis assets owned in the U.S., which were acquired in calendar year 2017, comparisons to the financial performance in calendar year 2016 were relatively without meaning. Hence, MPX chose to present the prior quarter, Q3 2017, as the most meaningful comparable.
The sequential change in grams of product sold was negligible (2%) due to capacity constraints at the company’s Mesa, AZ processing site. The production capacity is currently being doubled at that site and is scheduled to come onstream in the spring of 2018. MPX was able to increase the contribution from higher-margin concentrates and derivative products, such as cannabis oils, shatter, wax and live resin. Expenses for the quarter were slightly higher than the prior quarter reflecting an increase in general and administrative expenses driven by the acquisition of Nevada assets in early December and additional support
staffing and consulting services (legal, finance) to support
the company’s growth.
On October 24, 2017, MPX made an initial drawdown of US$10 million from an available US$25 million revolving credit agreement using the funds to facilitate further acquisitions, capacity expansion and the development of new facilities in Massachusetts and Maryland. This drawdown accounted for much of the $13 million net loss reported from the quarter and places the company in a strong position moving forward as the markets in the expansion areas continue to mature.