DOD Biotech PCL (DOD) has moved to secure best in class expertise by partnering with the MFUSED Group (MFUSED) in Siam Herbal Tech Co., Ltd. (SH), a subsidiary company of DOD incorporated to specialize in hemp and other plant compound extractions and formulations. This partnership provides a synergy to develop a roadmap for SH to become a leading supplier of cannabinoids and other high value plant-based compounds in Asia.
Mr. Thanin Srisethi, Chief Executive Officer of DOD, stated that its subsidiary “SH is geared to extract cannabinoids initially from hemp and is in the process of defining the value chain for Kratom to add to its product offerings. SH has a registered capital of 260 million Thai baht and is designed to manufacture its products to FDA quality requirements for Traditional Thai Medicine and be in compliance for export to the international market. The company has recently formalized its partnership with MFUSED, a West Coast pioneer in the cannabis and hemp industry, and a multi-state operator in the United States for more than a decade. Through this partnership, MFUSED will have the right to acquire up to an 18% stake in SH.”
MFUSED is one of the first companies to provide cannabinoid products derived from pesticide-free hemp and cannabis in the Pacific Northwest of the United States and is one of the largest producers of cannabinoids in the region by volume and revenue. SH will derive technical expertise from two of MFUSED’s companies, Octave Labs and Canvas Therapeutics, based in Oregon and Washington (USA) respectively. Octave Labs focuses on hemp extraction with an average processing capacity of 70,000 kg of biomass per month and controls in access of 1,200 rais of outdoor hemp farms. Canvas Therapeutics focuses on plant based therapeutics formulations primarily using cannabinoids from hemp, cannabis and other medicinal plants .
Mr. Srisethi added that “MFUSED’s initial contribution as strategic partner is in designing and implementing production processes to meet international standards and match the efficiencies they have developed in one of the most competitive markets in the United States. SH has commenced hemp grow operations with our commercially licensed hemp contract farmers with the first batch of biomass to be available to meet the operational target. This will enable SH to meet delivery targets of both hemp seed oil and CBD products to DOD’s customers within Q4 2021. The company targets an internal rate of return (IRR) of approximately 25% per annum and payback period of less than five years. DOD and MFUSED target exporting SH’s products to the international market by 2024 or sooner if importing countries’ regulations allow for it. DOD is confident that the partnership will generate a profitable business synergy by bringing the key strengths of both organizations to create the whole value chain in the hemp and cannabis markets both domestically and internationally.”
Mr. Yung Tan, Chief Executive Officer of MFUSED, said that “the joint venture with DOD in SH is considered a massive step forward in the developing cannabinoid market in Asia. With Thailand’s liberalization of the full hemp value chain, the country is poised to become a global leader in the rapidly growing hemp, cannabinoids, and plant-based therapeutics industry. The country’s regional first mover advantage, strategic location in Southeast Asia, local farmers’ centuries of agricultural expertise, and world class healthcare capabilities are key elements that will contribute to its success. We are exceedingly eager to be able to contribute our experience and knowledge to assist the local industries in creating a sustainable and successful plant-based therapeutics value chain, starting with hemp-based cannabinoids. We believe in the strength and potential of DOD as our strategic partner in Thailand and hence the investment in SH. DOD already has established operations with its own extraction plant, laboratory, as well as research and development functions to support the formulation and production of dietary supplements in its core ODM business. Most importantly, DOD is committed to becoming a leader in the fully-integrated production of cannabinoid-based products extracted from hemp and as well as other therapeutic plants.”
Mr. Jonathan Watsuksanti, Director of MFUSED Group APAC, also added that “the global cannabinoid and plant-based therapeutics markets are growing at a significant rate specifically for medical and health purposes. The Thai market for cannabinoid-based product is expected to be worth up to $660 million USD per annum by 2024. Meanwhile, the Asia market has the potential to reach up to $12.5 billion USD in the same time frame. MFUSED and DOD share the same vision and objective in developing Thailand as the global hub for high-quality hemp and other plant-based therapeutics products. Thailand can capitalize on its agricultural expertise, relative low production cost, world-class healthcare capabilities and progressive regulatory environment to become a leader in Asia hemp industry and beyond.”