MPX International Corporation (“MPX International”, “MPXI” or the “Corporation”) (CSE:MPXI) (CNSX:MPXI.CN) (OTC:MPXOF), a multinational diversified cannabis company, and its subsidiary, Salus International Management Ltd. (“SIM”), a management company currently focused on operations in Southeast Asia, are pleased to announce that Salus Bioceutical (Thailand) Co. Ltd. (“SBT”), in partnership with SIM, is opening a 600-million-baht (C$22,900,000) cannabis/hemp production plant (the “Facility”) in Doi Saket district of Chiang Mai province in Thailand. The Facility will initially produce CBD products to cater to growing international and local demand, whereby THC products and medicine will be developed subject to government approval under applicable laws. Further details with respect to the arrangements between SIM and SBT can be found in the press releases dated June 1, 2021 “MPX International Establishes Operations in Thailand’s Domestic Cannabis Market”, June 3, 2021 “MPX International’s Thailand Venture announces Board and Advisory Appointments” and October 4, 2021 “MPX International’s Thailand Subsidiary Closes US$10 Million Financing and Provides Project Update”.
The world-class Facility is expected to have an annual capacity for the extraction of over 200,000 kilograms of biomass, and production of over 50,000 liters of CBD oil and 90,000 kilograms of isolate powder and water-soluble CBD isolate, making SBT one of the largest cannabis/hemp manufacturing plants in Thailand and the most sophisticated production site outside of North America. The 800 m2 plant covers indoor cultivation and in an additional building, a high capacity extraction and distillation capability developed by Ontario-based extractX Ltd. employing some of the most technologically advanced equipment available in the cannabis industry as well as a medical grade laboratory for hemp and cannabis analysis, which will allow for a unique distillation process, ultimately producing high-yield and quality CBD products. With expertise from MPXI, an emergent global participant in the cannabis industry operating across five continents, SBT will implement best-in-class manufacturing practices into their Thai GMP and EU-GMP compliant medical production facilities. SBT has recently been granted a Hemp Extraction License, which allows SBT to operate and extract hemp flower legally under the laws of Thailand, making it one of the first companies in Thailand with complete licensing for CBD manufacturing.
W. Scott Boyes, Chairman, President and CEO of MPXI and SIM, said: “The emerging market for medical-grade CBD and THC products in Thailand is quickly maturing and the progressive approach of Thailand’s government will potentially make this country the epicenter of medical cannabis cultivation and production for all of Southeast Asia. MPXI is pleased to be playing an integral part in the planning, development, and management of SBT’s Chiang Mai Facility. As a shareholder and participant in the venture, MPXI expects the project to yield near-term revenues and profits that will be materially accretive to the financial performance of MPXI and SIM as well as provide significant upside to the shareholders of MPXI and SIM.”
Amid the global cannabis wave, Thailand, with a population of over 70 million, is a promising national jurisdiction for the industry following its legalization for the medical use of cannabis in 2019. There are an estimated 1,300,000 Thai patients that can undergo cannabis treatment (Julian Nabil Sarwat, Rosalie Schweninger and Igor Senjak, “CC Insights | Thailand Medical Cannabis” (2020) Cannabis Catalysts, CC Insight & Network GmbH, page 26 “Thailand Medical Cannabis”), and with Thailand currently being the third-most visited country by medical tourists in the world(Thailand Medical Cannabis, page 20), the integration of cannabis into the medical tourism industry alone is forecast to bring in US$60 million in 2024 with the total market size at that time estimated at between US$190 million to US$382 million (Thailand Medical Cannabis, page 24). Medical professionals are also encouraging medical cannabis to be considered a cultural heritage aspect of Thailand.
Tanadee Pantumkomon, COO and Director of SIM CEO and Director of SBT said: “We are excited to be taking our first big step in Thailand. The opening of our local CBD manufacturing plant will enable us to better respond to the growing demand for a wide variety of CBD products both in Thailand and worldwide. The facility will create a value chain upstream to downstream as well as providing benefits for all stakeholders – including job opportunities and additional income for local communities.”
SBT will be working closely with the Cannabis & Herbs Institute, Rajamangala University of Technology Isan, where institutional research will be conducted to understand the agriculture and agronomy of cannabis and hemp plants in the tropics as well as the extraction for medical purposes as a precursor for various industrial sectors. Additionally, SBT also aims to participate in developing communities and local farmers in operations for outdoor and greenhouse cultivation of high-CBD/low-THC hemp biomass. SBT has built demonstration sites for the outdoor growing of hemp in five different campuses of the Rajamangala University of Technology Isan to develop cultivation techniques and pass on know-how to local farmers.
As Thailand continues to venture into the market for medical cannabis, various opportunities will open up for future business. As the first North American medical cannabis company to enter the Thai market, SBT will initially be producing EU-GMP compliant medical-grade cannabis products such as CBD distillate, isolate powder, and water-soluble CBD isolate for domestic sales. The company will focus on producing high quality products for the domestic market and aims to dominate the ASEAN community by expanding sales throughout the entire Southeast Asia region.With Thailand declaring itself as an export country, the export potential can be estimated at US$618 million for 2024 (Thailand Medical Cannabis, page 24).
By moving forward with a strong client database and client support, SBT will be branching out into various sectors in the market. Having received interest from various Thailand-based food & beverage, cosmetics, healthcare, supplement, massage and spa, and animal feed manufacturers, SBT will potentially produce CBD distillate/isolate for commercial use by the fourth quarter of 2021. In the pharmaceutical realm, SBT is under the process to qualify the Facility for GMP-grade medical cannabis, and subject to government approval, will produce sublingual tablets and capsules, suppositories, transdermal patches and medical quality edibles containing other medically-beneficial cannabinoids.
The securities issued pursuant to the Offering and the Bridge Loan have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
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, Australia and Thailand 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.
About Salus International Management Ltd.
SIM is a private Ontario-based corporation and a partially-owned subsidiary of MPX International Corporation (along with a group of private shareholders). SIM was incorporated to provide design, planning, financing, training, and on-going operational support to cannabis initiatives, partnerships, and joint ventures in Southeast Asia. Its revenue is generated primarily from fees charged for the supply of management services.
About Salus Bioceutical (Thailand) Co. Ltd.
SBT is a joint venture between MPXI, a listed company in Canada (with world-leading and best-in-class concentration and extraction technology), and Thai investors. SBT is initially involved in the cultivation, processing and distribution of high-quality EU-GMP compliant medical-grade cannabis products such as CBD distillate, isolate powder, and water-soluble isolate for the medical community in Thailand, operating for the benefit of the health and well-being of the Thai people, whereby it will develop THC products and medicine, subject to government approval under applicable laws.
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