MPX International and its subsidiary, Salus International Management, have completed its US $10 million private placement which is being used to complete the build-out, acquire equipment and commence operations of a state-of-the-art, EU-GMP-compliant cultivation, extraction, processing, testing, and packaging facility capable of extracting 750 kgs of biomass and producing 30kgs of CBD/THC distillate/isolate each day.
SIM has entered into a management agreement with Salus Bioceutical, a Thailand-based medical cannabis company jointly owned by SIM and a consortium of Thai businesspeople, whereby it is providing design, construction, and technical support services, and ongoing management support of the project in exchange for management and other fees for the provision of its services. SIM’s partners in Salus Thailand consist of a consortium of Thai businesspeople who will play an active role in government relations, negotiation, and maintenance of supply relationships with medical and commercial institutions throughout the country and will be working closely with the Rajamangala University of Technology Isan Sakonnakhon Campus (the “University”) and Sarapee Community Enterprise Green and Clean (the “Community Enterprise”) to ensure optimal benefits to local interests within Chiang Mai province.
The extraction/distillation structure includes a uniquely designed, highly-automated, computer-monitored mobile extraction unit designed by Canada-based extractX Inc. incorporating the most modern extraction and distillation equipment and processes. The Board of SIM believes the facility will be capable of producing more CBD/THC distillate and isolate than any current or near-term potential competitor and at a much lower cost per unit than producers employing conventional extraction methods. The extractX unit was specially configured for the Thailand facility, has already been installed in the Chiang Mai facility, and is expected to become operational in mid-October.
Initial production will be focussed on the production of CBD distillate/isolate from hemp supplied by locally contracted hemp farms. Current prices for CBD distillate/isolate range from US $8,000 to US $12,000 per kg. Salus Thailand already has letters of intent for the purchase of over 6,000 kg of CBD distillate/isolate from several Thailand-based cosmetic, food, and beverage manufacturers.
Construction of an ISO 17025 compliant testing and calibration facility is expected to be completed in mid-November which will allow Salus Thailand to facilitate and accelerate testing and validation procedures mandated by the Thai FDA.
Planning is currently underway for the erection of a 12,000 square foot indoor cultivation building, deploying a 3-tier hydroponic growing system, capable of producing 10,000 kgs of cannabis biomass. This will be used for the processing of THC-based medical-grade cannabis distillate which will be sold to Thai public and private hospitals and clinics expected to begin in Q2 of 2022.
MPXI’s entrance into the Southeast Asia market has further diversified its opportunity to participate in global cannabis markets, complementing its European projects in Switzerland and Malta, cultivation in South Africa, distribution plans in Australia, and its current and growing operations in Canada.