Terry Booth, CEO, of AUDACIOUS, is proud to announce the Company has entered into a term sheet in regards to the formation of a strategic partnership with Golden Triangle Health (GTH), a subsidiary of NR Instant Produce PCL (“NRF”), a leading southeast Asian food manufacturer and distributor based in Thailand, producing its own signature brands private label products and co-packaging lines.
Terry Booth, CEO, said, “This is an Audacious partnership whereby we will take our know-how and IP and help our partner optimize operations, product development and utilize our joint marketing and influencer networks to establish a leader in the rapidly growing Asian CBD market. Tom, who we know firsthand as an exceptional business executive with a strong track record in execution, and his team have built an amazing company already. We had been in talks for some time, but everything accelerated due to our presence at MJBizCon, which enabled us to meet face to face and execute on what we believe will be an exceptional opportunity to establish the AUDACIOUS brand internationally. We are very proud of this partnership that makes us, to the best of our knowledge, the first international company with an operational presence in the Asian legal cannabis market.”
Mr. Booth added “We believe in the many benefits of CBD and we have the science to prove it. Our discussions with GTH have been diligent and the entire group is aligned with a strong strategy going forward. Tom is a charismatic man with tonnes of positive energy and a force to be reckoned with in Southeast Asia. AUDACIOUS look forward to building our relationship with GTH and their partners globally.”
Tom Kruesopon, Director of GTH, added, “While we have strong brand equity in Thailand and large parts of Asia already, combining with AUDACIOUS will lift our recognition to the next level. The combined know-how and our existing partnerships form a very solid foundation to build what we believe can be one of the most meaningful players in the Asian CBD market. I look forward to working closely with Terry and the amazing team at AUDACIOUS and bring our existing and new product lines to the Asian markets and likely beyond.”
Strategic Rationale
The partnership
The purpose of the partnership is to develop GTH into the most meaningful CBD player in the Asian market. AUDACIOUS will provide advisory services, operational intelligence, including cultivation, manufacturing, and product development, and expansion of brand visibility in Thailand and beyond. Further, the potential exists for AUDACIOUS to become an export partner for GTH’s Thai product portfolio, to include CBD and Hemp consumables, topicals and other hemp derived commodities. Products will be sold under the GTH brand, as well as through B2B channels under white label agreements.
Under the terms of the agreement, AUDACIOUS and GTH will enter into a share swap in two tranches whereby a total of up to $4 million in shares will be exchanged, contingent upon GTH reaching certain milestones. Each tranche is of equal size (US$2 million), with the second tranche payable only upon GTH achieving profitable operations. Upon completion, AUDACIOUS will obtain an ownership interest of up to 25% in GTH, as well as three board seats.
GTH
GTH was co-founded by Tom Kruesopon, who was one of the co-founders of Asia’s first low-cost airline, AirAsia X, which was sold in a successful exit. Mr. Kruesopon, known as Mr. Weed Thailand and the person responsible for helping to legalize cannabis in Thailand, previously was advisor to the former prime minister in Thailand, as well as CEO of Tune Insurance and President of Panda Securities.
GTH has secured a five-year contract with Khon Kaen university to utilize their land (up to 1,000 acres) for cultivation, as well as the university’s harvesting and processing equipment for the production of hemp-based products. Product lines will include CBD infused, as well as fiber and oil-based supplements.
The company has developed a number of products that it is currently selling on the Thai market. Upon execution of the final agreement, the companies will work together on developing brand and additional infrastructure, with ALPS providing facility design services for a new indoor facility to augment the existing outdoor grow, as well as crop consulting services to improve yields of the outdoor facility.
AUDACIOUS will be nominating three directors for the GTH board, namely Hanoz Kapadia (Chairman of the Board at AUDACIOUS), Dr. Duke Fu (AUDACIOUS COO) and Maximilian Weinberg (Director, International Regulatory Affairs, AUDACIOUS).
Hanoz Kapadia
Dr Fu
Maximilian Weinberg
Leveraging Major Partner
GTH is a spin-off from NRF (https://www.nrinstant.com), a US$360 million (by market cap) Thai public company, founded in 1991, specialized in the production and distribution of oriental and plant-based food products. NRF is the leading plant base food in Southeast Asia, traded on the Thailand stock exchange and has just been named as part of the Thai SET benchmark 100. AUDACIOUS, NRF and GTH will be collaborating closely to drive and accelerate growth of GTH in Thailand and other global jurisdictions.
Thai Market
The Thai market for CBD products is in its infancy, but AUDACIOUS partner GTH projects the market to reach approximately $1 billion in Thailand at maturity.
About AUDACIOUS
AUDACIOUS is at its roots a community and culture-based cannabis company. After the completion of a dissident shareholder battle that ended with convincing shareholder approval, Terry Booth, former Aurora CEO, who had to step away from AUSA upon spin off, re-joined AUSA as CEO on March 9, 2021. Since then, the company has reset the direction of AUSA and in just 7 months closed multiple accretive transactions, improved legacy contracts, established a world class Executive Team, and resolved previous executive and board exits.
Also, in the same time frame, AUSA with its acquisition of ALPS has entered the global Sustainable Controlled Environment Agriculture Industry, a rapidly growing segment of the global horticulture market. ALPS provides customized designs along with multiple services that allow operators to maximize yield and quality while minimizing inputs and resources, including labor. ALPS at present is active in cannabis and traditional horticulture projects across the globe, including the U.S., Canada, Denmark Finland, Iceland, Germany, Netherlands, Bahrein, United Arab Emirates, Southeast Asia, Australia, as well as other jurisdictions.
Total Capex committed by ALPS’ clients since Aurora divested its interest just 17 short months ago during the Covid crisis, stands at approximately $1 billion, with a rapidly growing business development pipeline with over $4 billion in total Capex planned to be spent by potential clients.
AUSA’s business assets include: a 51% ownership interest in ALPS, a milestone weighted deal with an option to acquire the remaining 49% of ALPS –- AUSA and Green Therapeutics, an award-winning MSO, have finalized and agreed to all terms with respect to AUSA’s 100% acquisition (subject to regulatory state licensing approvals). AUSA also owns land assets in Bellingham, Washington – as well as the iconic West Coast brand Mr. Natural and the ingestibles brand LOOS with a footprint in the California market. The Company is in the process of completing the acquisition of a retail facility in San Jose, which comes with the ability to cultivate and manufacture, as well as a state-wide partnership with Eaze, the largest legal delivery services in the U.S. AUDACIOUS also has a partnership with the PBR, the (Professional Bull Riders group). Under the partnership, the Company is launching a PBR endorsed line of topical CBD products under the Wreck-Relief brand. Expected to launch with the PBR Event “Release the Beast” in early November 2021.
AUSA also has a supply partnership with Belle Fleur, founded by the team behind Rapper Weed. AUSA and Belle Fleur are working towards a broader arrangement to include brand partnerships in Massachusetts and other jurisdictions the companies intend entering into. The Belle Fleur project in Massachusetts is well underway with ALPS being awarded the engineering and design contract.
In San Jose, CA, the Company is completing the acquisition of the Herbs dispensary, which comes with a distribution partnership with Eaze, the largest legal cannabis delivery service in North America.
AUSA furthermore has investments in Body and Mind Inc., a U.S. MSO, Quality Green, a Canadian licensed producer and Cocoon, a company changing the dispensary customer user experience through self-service kiosks. The Company also has entered into a sponsorship agreement with Endeavour owned Professional Bull Riders, as well as executed a term sheet for a JV partnership with 3 Rivers Biotech for plant tissue culture, genetics clean-up and micro propagation.
AUSA and ALPS have secured contracts or are in late-stage negotiations in the following jurisdictions: Australia, UAE, Bahrain, Canada, Finland, Germany, Iceland, Jordan, Kuwait, Netherlands, Saudi Arabia, Denmark, Massachusetts, Arizona, Nevada, Washington, Michigan, Missouri, Oklahoma, Colorado, Florida, Illinois, Maine, Maryland, New Mexico, Pennsylvania, Wyoming, and California, with other deals in other states presently being evaluated and negotiated. Audacious are laser focused on New York and New Jersey as well.
The Company’s common shares trade on the CSE under the symbol “AUSA” and on the OTCQB under the symbol “AUSAF”.
“Terry Booth“
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Terry Booth
Chief Executive Officer