Canadian cannabis company MPX International has dropped plans to build an $8m indoor cultivation facility in Tasmania and will import products from Malta, Canada and South Africa instead.
Announcing its Q3 2020 financial results, the company said: “In Australia, the opportunity to import products from Malta, Canada and South Africa has prompted the corporation to change its focus from domestic production to developing an import and distribution capability and now plans to import and introduce the Salus branded products to the Australian market.
“MPXI’s Australian subsidiary is fully licensed for the import and distribution of cannabis. As a result, MPX Australia has discontinued its planned build-out of its cultivation facility in Tasmania.”
Former New South Wales premier Morris Iemma (pictured) was appointed as the company’s Australian chairman in 2019, but left after the company said it couldn’t afford him.
MPX Australian executive director Tibor Vertes told the Daily Telegraph the change in direction was prompted by a “collapse” in the ability of cannabis companies to raise capital.
“The money situation changed,” he said. “It was very hard to raise on reasonable terms.”
He said the Tasmanian operation was never intended to be more than a “showcase”.
“We can bring it in a lot cheaper from overseas than you can grow it here,” he added.