MPXOF - MPX International's Thailand Subsidiary Establishes First State-Of-The-Art High-Capacity Cannabis/Hemp Manufacturing and Extraction Laboratory in Asia in Response to Surging Demand for CBD and Thc Products
(TheNewswire)
TORONTO, ONTARIO – TheNewswire- January 4, 2022 – MPX International Corporation (“ MPXInternational ”, “ MPXI ” or the“ Corporation ”) (CSE:MPXI )(CNSX:MPXI.CN) ( OTC:MPXOF), a multinational diversifiedcannabis company, and its subsidiary, Salus International ManagementLtd. (“ SIM ”), a management company currentlyfocused on operations in Southeast Asia, are pleased to announce that Salus Bioceutical (Thailand) Co.Ltd. (“ SBT ”), in partnership with SIM, is opening a600-million-baht (C$22,900,000) cannabis/hemp production plant (the“ Facility ”) in Doi Saket district of Chiang Mai province inThailand. The Facility will initially produce CBD products to cater togrowing international and local demand, whereby THC products andmedicine will be developed subject to government approval underapplicable laws. Further details with respect to the arrangementsbetween SIM and SBT can be found in the press releases dated June 1,2021 “MPX International Establishes Operations in Thailand’sDomestic Cannabis Market”, June 3, 2021 “MPX International’sThailand Venture announces Board and Advisory Appointments” andOctober 4, 2021 “ MPX International’sThailand Subsidiary Closes US$10 Million Financing and ProvidesProject Update ”.
The world-class Facility is expected to have an annualcapacity for the extraction of over 200,000 kilograms of biomass, andproduction of over 50,000 liters of CBD oil and 90,000 kilograms ofisolate powder and water-soluble CBD isolate, making SBT one of thelargest cannabis/hemp manufacturing plants in Thailand and the mostsophisticated production site outside of North America. The 800 m 2 plant covers indoor cultivation and in anadditional building, a high capacity extractionand distillation capability developed by Ontario-based extractX Ltd.employing some of the most technologically advanced equipmentavailable in the cannabis industry as well as a medical gradelaboratory for hemp and cannabis analysis, which will allow for aunique distillation process, ultimately producing high-yield andquality CBD products. With expertise from MPXI, an emergent globalparticipant in the cannabis industry operating across five continents,SBT will implement best-in-class manufacturing practices into theirThai GMP and EU-GMP compliant medical production facilities. SBT hasrecently been granted a Hemp Extraction License, which allows SBT tooperate and extract hemp flower legally under the laws of Thailand,making it one of the first companies in Thailand with completelicensing for CBD manufacturing.
W. Scott Boyes, Chairman, President and CEO of MPXI andSIM, said: “The emerging market for medical-grade CBD and THCproducts in Thailand is quickly maturing and the progressive approachof Thailand’s government will potentially make this country theepicenter of medical cannabis cultivation andproduction for all of Southeast Asia. MPXI is pleased to be playing anintegral part in the planning, development, and management of SBT’sChiang Mai Facility. As a shareholder and participant in the venture,MPXI expects the project to yield near-term revenues and profits thatwill be materially accretive to the financial performance of MPXI andSIM as well as provide significant upside to the shareholders of MPXIand SIM.”
Amid the global cannabis wave, Thailand, with apopulation of over 70 million, is a promising national jurisdictionfor the industry following its legalization for the medical use ofcannabis in 2019. There are an estimated 1,300,000 Thai patients thatcan undergo cannabis treatment (Julian Nabil Sarwat, RosalieSchweninger and Igor Senjak, “CC Insights | Thailand MedicalCannabis” (2020) Cannabis Catalysts, CCInsight & Network GmbH, page 26 “Thailand MedicalCannabis”) , and with Thailand currently beingthe third-most visited country by medical tourists in the world (Thailand Medical Cannabis, page 20), the integrationof cannabis into the medical tourism industry alone is forecast tobring in US$60 million in 2024 with the total market size at thattime estimated at between US$190 million to US$382 million (ThailandMedical Cannabis, page 24). Medical professionals are also encouragingmedical cannabis to be considered a cultural heritage aspect ofThailand.
Tanadee Pantumkomon, COO and Director of SIM CEO andDirector of SBT said: “We are excited to be taking our first bigstep in Thailand. The opening of our local CBD manufacturing plantwill enable us to better respond to the growing demand for a widevariety of CBD products both in Thailand and worldwide. The facilitywill create a value chain upstream to downstream as well as providingbenefits for all stakeholders – including job opportunities andadditional income for local communities.”
SBT will be working closely with the Cannabis &Herbs Institute, Rajamangala University of Technology Isan, whereinstitutional research will be conducted to understand the agricultureand agronomy of cannabis and hemp plants in the tropics as well as theextraction for medical purposes as a precursor for various industrialsectors. Additionally, SBT also aims to participate in developingcommunities and local farmers in operations for outdoor and greenhousecultivation of high-CBD/low-THC hemp biomass. SBT has builtdemonstration sites for the outdoor growing of hemp in five differentcampuses of the Rajamangala University of Technology Isan to developcultivation techniques and pass on know-how to local farmers.
As Thailand continues to venture into the market formedical cannabis, various opportunities will open up for futurebusiness. As the first North American medical cannabis company toenter the Thai market, SBT will initially be producing EU-GMPcompliant medical-grade cannabis products such as CBD distillate,isolate powder, and water-soluble CBD isolate for domestic sales. Thecompany will focus on producing high quality products for the domesticmarket and aims to dominate the ASEAN community by expanding salesthroughout the entire Southeast Asia region. With Thailand declaring itself as an export country, the exportpotential can be estimated at US$618 million for 2024 (ThailandMedical Cannabis, page 24).
By moving forward with a strong client database andclient support, SBT will be branching out into various sectors in themarket. Having received interest from various Thailand-based food& beverage, cosmetics, healthcare, supplement, massage and spa,and animal feed manufacturers, SBT will potentially produce CBDdistillate/isolate for commercial use by the fourth quarter of 2021.In the pharmaceutical realm, SBT is under the process to qualify theFacility for GMP-grade medical cannabis, and subject to governmentapproval, will produce sublingual tablets and capsules, suppositories,transdermal patches and medical quality edibles containing othermedically-beneficial cannabinoids.
Thesecurities issued pursuant to the Offering and the Bridge Loan havenot been, and will not be, registered under the UnitedStates Securities Act of1933 , as amended, and may notbe offered or sold in the United States or to, or for the account orbenefit of, U.S. persons absent registration or an applicableexemption from the registration requirements. This news release willnot constitute an offer to sell or the solicitation of an offer to buynor will there be any sale of the securities in any State in whichsuch offer, solicitation or sale would be unlawful .
About MPX InternationalCorporation
MPX International Corporation is a multinational diversified cannabis company focused on developing and operating assets across theinternational cannabis industry with an emphasis on cultivating,manufacturing and marketing products which include cannabinoids astheir primary active ingredient. With current operations spanning fourcontinents in Canada, Switzerland, South Africa, Malta, Australia andThailand as well as evolving partnership and distributionopportunities in other jurisdictions, MPXI continues to positionitself as an emergent global participant in the cannabisindustry.
About SalusInternational Management Ltd.
SIM is a private Ontario-based corporation and apartially-owned subsidiary of MPX International Corporation (alongwith a group of private shareholders). SIM was incorporated to providedesign, planning, financing, training, and on-going operationalsupport to cannabis initiatives, partnerships, and joint ventures inSoutheast Asia. Its revenue is generated primarily from fees chargedfor the supply of management services.
About SalusBioceutical (Thailand )Co. Ltd.
SBT is a jointventure between MPXI, a listed company in Canada (with world-leadingand best-in-class concentration and extraction technology), and Thaiinvestors. SBT is initially involved in the cultivation, processingand distribution of high-quality EU-GMP compliant medical-grade cannabis products such as CBDdistillate, isolate powder, and water-soluble isolate for the medical community in Thailand,operating for the benefit of the health and well-being of the Thaipeople , whereby it will develop THCproducts and medicine, subject to government approval under applicablelaws .
Cautionary Statement RegardingForward-Looking Information
This news release includes certain“forward-looking statements” under applicable Canadian securitieslegislation that are not historical facts. Forward-looking statementsinvolve risks, uncertainties, and other factors that could causeactual results, performance, prospects, and opportunities to differmaterially from those expressed or implied by such forward-lookingstatements. Forward-looking statements in this news release include,but are not limited to, MPX International’s objectives andintentions. Forward-looking statements are necessarily based on anumber of estimates and assumptions that, while considered reasonable,are subject to known and unknown risks, uncertainties and otherfactors which may cause actual results and future events to differmaterially from those expressed or implied by such forward-lookingstatements. Such factors include, but are not limited to: generalbusiness, economic and social uncertainties; litigation, legislative,environmental and other judicial, regulatory, political andcompetitive developments; delay or failure to receive board,shareholder or regulatory approvals; the Corporation’s ability toeffectively deal with the restrictions, limitations and health issuespresented by the COVID-19 pandemic; future cannabis pricing; cannabiscultivation yields; costs of inputs; its ability to market productssuccessfully to its anticipated clients; reliance on key personnel andcontracted relationships with third parties; the regulatoryenvironment in Australia, Canada, Malta, South Africa, Switzerland andother international jurisdictions; the ability to complete any futurepotential transactions and the terms and conditions thereof; theapplication of federal, state, provincial, county and municipal laws;and the impact of increasing competition; those additional risks set out in MPXInternational’s public documents filed on SEDAR at www.sedar.com , including its audited annualconsolidated financial statements for the financial years endedSeptember 30, 2020 and 2019, and the corresponding management’sdiscussion and analysis; and other matters discussed in this newsrelease. Although MPX International believes that the assumptions andfactors used in preparing the forward-looking statements arereasonable, undue reliance should not be placed on these statements,which only apply as of the date of this news release, and no assurancecan be given that such events will occur in the disclosed time framesor at all. Except where required by law, MPX International disclaimsany intention or obligation to update or revise any forward-lookingstatement, whether as a result of new information, future events, orotherwise.
For further information about MPXI,please contact:
MPX International Corporation
W. Scott Boyes, Chairman, President andCEO
T: +1-416-840-4703
info@mpxinternationalcorp.com
or visit one our websites:
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