Australis Capital Inc, which also operates as Audacious, announced that it has entered into an agreement with Golden Triangle Health (GTH) — a southeast Asian food manufacturer and distributor based in Thailand — forming a strategic partnership to produce GTH’s private label products and co-packaging lines.
The company said that the focus is to develop GTH into the most meaningful CBD player in the Asian market. Audacious will provide advisory services, operational intelligence, including cultivation, manufacturing, product development, and expansion of brand visibility in Thailand.
The Las Vegas-based company said that it is anticipating becoming 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.
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"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,” said Terry Booth, CEO of Audacious.
The company said that it will enter into a share swap with GTH in two tranches where a total of up to $4 million in shares will be exchanged.
Each tranche is of equal size, with the second tranche payable only upon GTH achieving profitable operations. On completion, Audacious will obtain an ownership interest of up to 25% in GTH, as well as three board seats, the company said.
"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,” said Tom Kruesopon, Director of GTH. 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.”
GTH is a spin-off from NRF — a US$360 million (by market cap) Thai public company specializing in the production and distribution of oriental and plant-based food products. Audacious, NRF, and GTH will be collaborating closely to drive and accelerate the growth of GTH in Thailand and other global jurisdictions.
On January 29, 2021, the production of hemp became legal in Thailand. This includes products ranging from cosmetics to food and beverages, as well as medical and supplements.
Audacious also shared a strategic rationale for the partnership.
- The Thai market for CBD products is in its infancy, as GTH projects the market to reach approximately $1 billion in Thailand at maturity.
- Hemp was authorized as legal in January 2021, and a limited number of licenses were granted by the authorities to date, providing an early mover advantage to GTH
- Provides Audacious with a well-established partner in a CBD derived from hemp market, poised for rapid growth
- Positions Audacious for further international expansion
- Provides an early mover advantage due to the limited number of licenses granted to date
- Well-aligned with the Audacious strategy for capital-light expansion, as under the deal terms, Audacious is not required to provide capital for construction, working capital, or other purposes
- Through GTH's parent company, the partnership will have access to large, well-established distribution networks throughout Thailand, Asia, and North America
- GTH is authorized to distribute products through e-commerce and B2C networks
- The partnership will benefit from being the exclusive distribution partner for Cookies in Asia (excluding Japan). Cookies are the iconic California brand, founded by Berner, one of the most respected entrepreneurs in the cannabis space, among others due to their attention to high-quality genetics.
- GTH has access to a broad portfolio of infused and non-infused (industrial hemp) products, diversifying revenue streams
- GTH provides Audacious with the ability to leverage its network of Asian influencers to expand brand and company recognition in this market
Audacious, at its roots, is a community and culture-based cannabis company. The company has also entered the global Sustainable Controlled Environment Agriculture industry — a rapidly growing segment of the global horticulture market.