Strategic Partnership between AUDACIOUS and Golden Triangle Health in Thailand

Introduction to the Partnership

On November 3, 2021, AUDACIOUS (CSE: AUSA) announced a strategic partnership with Golden Triangle Health (GTH), a subsidiary of NR Instant Produce PCL (NRF), a prominent food manufacturer in Thailand. This collaboration marks a significant milestone for AUDACIOUS, establishing it as the first international firm with an operational presence in the legal cannabis market within Asia. CEO Terry Booth expressed enthusiasm about leveraging their expertise to optimize operations and enhance product development in this burgeoning market.

The Vision for CBD in Thailand

The Thai market for CBD products is in its formative stages, with projections indicating a potential market value of approximately $1 billion at maturity. GTH, by being an early mover since the legalization of hemp production in January 2021, has positioned itself advantageously by securing limited licenses. Through this partnership, AUDACIOUS aims to tap into this growing market, providing both operational insight and innovative product development.

AUDACIOUS’s Role and Commitment

AUDACIOUS will play a multifaceted role in this partnership, offering advisory services that encompass product development, cultivation, and manufacturing processes. The company also intends to enhance brand visibility and recognition for GTH not only in Thailand but across Asia and potentially globally. This flexibly structured collaboration minimizes AUDACIOUS’s financial exposure, as it is not required to fund construction or working capital.

Golden Triangle Health’s Established Legacy

GTH, co-founded by Tom Kruesopon, possesses strong brand equity in Thailand and parts of Asia. Kruesopon, often referred to as “Mr. Weed Thailand,” was instrumental in the legalization of cannabis in the country. His ambitious vision and past entrepreneurial successes provide GTH with a solid foundation to elevate its market presence.

GTH has already secured a five-year partnership with Khon Kaen University, utilizing their extensive land for cultivation and production of hemp-based products. This adds another layer of credibility and operational capability to GTH’s endeavors.

Advantages Offered by NR Instant Produce PCL

At the heart of this partnership is NRF, a $360 million public company specializing in plant-based food production and distribution. This affiliation provides GTH, and consequently AUDACIOUS, direct access to expansive distribution networks across Thailand, Southeast Asia, and North America. This broad reach enhances the potential for rapid growth in the CBD sector.

NRF’s established relationships with Thailand’s leading health and wellness brands will also facilitate the introduction of CBD-infused products under white label agreements. This connection brings an added layer of commercial viability to the partnership.

Leveraging Distribution Networks

With GTH’s ability to distribute products via e-commerce and B2C platforms, AUDACIOUS stands to benefit significantly. The partnership is also set to gain exclusive distribution rights for the popular California cannabis brand, Cookies, in Asia (excluding Japan). This strategic move positions AUDACIOUS favorably amidst an expanding and competitive market landscape.

Strategic Rationale and Future Prospects

The collaboration aligns perfectly with AUDACIOUS’s vision for sustainable and capital-light expansions. It not only enhances their international footprint but also diversifies their product offerings in a fast-growing market. With a keen focus on cultivating both infused and non-infused hemp products, GTH presents AUDACIOUS with multiple revenue streams while tapping into the burgeoning consumer interest in CBD.

Executives Driving the Partnership

The strategic direction will be guided by three key directors appointed by AUDACIOUS to GTH’s board: Hanoz Kapadia, Dr. Duke Fu, and Maximilian Weinberg. Each brings a wealth of expertise in finance, pharmaceuticals, and international regulatory affairs, underscoring the partnership’s potential for success.

• Hanoz Kapadia: A seasoned entrepreneur experienced in regulatory and financial matters, Kapadia has previously held significant positions in cannabis governance in Ontario.

• Dr. Duke Fu: A well-established figure in biotech with a strong background in cannabis, Fu has co-founded award-winning cannabis companies and brings a rich understanding of the industry.

• Maximilian Weinberg: As an experienced leader in business development, Weinberg has played pivotal roles across multiple countries, enhancing AUDACIOUS’s operational reach.

GTH’s Product Development and Academic Collaborations

GTH is not just focusing on expansion; it’s actively developing a range of CBD products that will make their way into various market segments in Thailand. The collaboration with Khon Kaen University opens opportunities for academic partnerships, potentially leading to innovations in product formulations.

Regulatory Landscape in Thailand

Thailand’s legalization of hemp production marks a pivotal shift not only for the agricultural sector but also for health and wellness industries. The country’s progressive cannabis laws allow for a variety of product innovations, from cosmetics to food and supplements, all with less than 1% THC content.

Limited licenses mean GTH and AUDACIOUS are positioned to capture significant market share ahead of competitors, securing their place in what could soon become a lucrative industry.

Conclusion

The partnership between AUDACIOUS and Golden Triangle Health exemplifies a promising union poised to capitalize on the burgeoning CBD market in Asia. Supported by a solid foundational network, experienced leadership, and a well-structured strategy, this collaboration is set to unlock new possibilities in the legal cannabis landscape. As the Thai market matures, both companies are strategically positioned for substantial growth and influence in the expanding global CBD sector.