Audacious AUSA AUSAF revealed Wednesday it has entered into a term sheet to form a strategic partnership with Golden Triangle Health (GTH), a subsidiary of NR Instant Produce PCL ("NRF"), a southeast Asian food manufacturer and distributor. The Thailand-based NRF also produces its signature brands private label products and co-packaging lines.
What’s In It For Audacious?
- With Thailand's CBD market still developing, GTH projects it will reach around $1 billion at maturity; GTH has an early mover advantage;
- Through this partnership, Audacious will be better positioned for further international expansion;
- Via GTH’s parent company, the duo will have access to large, well-established distribution networks throughout Thailand, Asia and North America;
- The partnership falls under Audacious capital-light expansion strategy, as under the deal terms, the company is not required to provide capital for construction, working capital, or other purposes;
- The partnership will benefit from being the exclusive distribution partner for Berner’s Cookies in Asia (excluding Japan), the iconic California brand.
Through this partnership Audacious plans to make GTH one of the leading CBD players in the Asian market. The Las Vegas, Nevada-based cannabis company will provide advisory services, operational intelligence including
cultivation, manufacturing, product development and expansion of brand visibility in Thailand and beyond.
Audacious will potentially become an export partner for GTH's Thai product portfolio, to include CBD and Hemp consumables, topicals and other hemp-derived commodities.
Under the deal, 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. Upon completion, Audacious will obtain an ownership interest of up to 25% in GTH, as well as three board seats.
“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,” Terry Booth, CEO of Audacious stated. "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 looks forward to building our relationship with GTH and their partners globally."
Audacious’ shares were trading 6.06% higher at 15 cents per share at the time of writing Wednesday late morning.
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