• The proposed acquisition of Siam Ventures, which provides contract manufacturing services through a subsidiary, will act as a gateway to large Asian markets for PharmaCielo product.
• Experienced investor, businessman and lawyer Louis Desmarais, the current Chairman and CEO of Siam Ventures, will join the Company’s board of directors on closing.

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

All amounts expressed in Canadian dollars unless otherwise noted

Toronto, Ontario and Rionegro, Colombia–(Newsfile Corp. – April 10, 2024) – PharmaCielo Ltd. (TSXV: PCLO) (OTCQX: PCLOF) (“PharmaCielo” or the “Company”), the Canadian parent of Colombia’s premier cultivator and producer of dried flower and medicinal-grade cannabis extracts, PharmaCielo Colombia Holdings S.A.S., today announced that it has signed a binding Letter of Intent to enter a proposed transaction (the “Proposed Acquisition”) whereby it would acquire 100% of the issued and outstanding shares of Siam Ventures Corporation (“Siam Ventures”) in exchange for common shares of PharmaCielo (the “PharmaCielo Shares”), representing aggregate consideration value of $3,000,000 (the “Purchase Price”). The Purchase Price shall be payable on closing of the Proposed Acquisition by way of the issuance of 13,636,363 PharmaCielo Shares to the shareholders of Siam Ventures on a pro rata basis, representing the equivalent of $3,000,000 (the “Consideration Shares”). The number of Consideration Shares to be issued have been determined based on a price of $0.22 per Consideration Share, which is equal to the volume weighted average price of the PharmaCielo Shares traded on the TSX Venture Exchange (“TSXV”) for the twenty (20) trading days immediately preceding today. Completion of the Proposed Acquisition is subject to due diligence, regulatory approvals, and the satisfaction of other customary closing conditions.

PharmaCielo also announced that it is undertaking a non-brokered private placement of 9,090,909 units (“Units”) at a price of $0.22 per Unit (the “Offering Price”), under the Listed Issuer Financing Exemption (“LIFE”). Certain insiders of PharmaCielo and existing investors of Siam Ventures plan to participate in the Offering. Each Unit will be comprised of (i) one common share (a “Common Share”) of the Company and (ii) one Common Share purchase warrant (a “Warrant”) of the Company (the “Offering”), for gross proceeds of $2.0 million. The Company has the option to increase the size of the Offering to $3.0 million, or an additional 4,545,455 Units. Each Warrant entitles the holder thereof to purchase one Common Share (a “Warrant Share”) at a price of $0.30 for a period of 24 months. Closing of the Offering may take place in one or more tranches, provided that the final tranche closing will occur no later than May 25, 2024, being 45 days following the date hereof (the “Closing Date”). The Company intends to use the net proceeds from the Offering to finance general working capital requirements, expand international markets, and to facilitate the production of product based on the current demand of its customers. Closing of the Offering is subject to regulatory approval including that of the TSX Venture Exchange (the “TSXV”). For additional terms of the Offering, refer to the section titled Additional Terms of the Offering in this press release.

Management Commentary

Marc Lustig, Chairman and CEO of PharmaCielo commented, “This proposed acquisition will provide PharmaCielo with a ready pipeline for its high-quality product as large Asian markets begin to open to cannabinoids. On closing, Louis Desmarais will join our board of directors. Mr. Desmarais is a uniquely qualified and accomplished professional with deep ties in these markets and we expect to benefit from his guidance.”

Mr. Lustig continued, “PharmaCielo’s management team has worked relentlessly over the past two years to drive efficiencies while building our sales pipeline. Our strategy is longer term in nature, based on early adoption in newly opening markets and integration into development-stage products. This strategy takes time to work, but it is about to start paying off. The recent announcement of Ease Labs’ contract with the State Government of São Paulo in Brazil, relying on our proprietary API, is just the beginning. I am personally one of the Company’s largest investors and am confident that this strategy will create enormous shareholder value as markets continue to open, and product development pipelines that are currently early stage, go commercial.”

Louis Desmarais, Chairman and CEO of Siam Ventures added, “Asia represents a very large, long-term opportunity for international cannabis producers. We have spent the past five years establishing the networks required to provide robust distribution across the continent as individual markets begin to open. We have chosen to join with PharmaCielo, and to invest our own capital alongside Marc and other insiders, because we believe that PharmaCielo has all the key attributes required for success in international markets – a deep shelf of high-quality products, a proprietary genetics bank, in-house pharma-level formulation expertise, low incremental cost to scale, and a structural cost advantage. Siam Ventures’ team brings a plug and play manufacturing and distribution platform in a region that we expect will become a much larger part of the global cannabis conversation over the next decade. We look forward to working with Marc and the team to capture this opportunity for PharmaCielo shareholders.”

Siam Ventures Corporation

Siam Ventures, and its principals with over 20 years of business experience in Thailand, have built enduring networks at the intersection of business, government and politics across Asia.

Louis Desmarais

Louis Desmarais is currently the Chairman & CEO of Siam Ventures. Mr. Desmarais is also the Honorary Consul General – Montreal, as well as an Honorary Trade Advisor, for the Royal Kingdom of Thailand.

Prior to Siam Ventures, Mr. Desmarais was the Managing Partner of Darwin Financial Corporation and the founder and managing partner of St-Lawrence Capital, LP, an early-stage venture capital fund, whose main investors included The Caisse de Dépôt et Placement du Québec, the Quebec Solidarity Fund and Investment Quebec. Before that, he was a general partner of Skypoint Capital Corporation, where he led Skypoint’s fundraising efforts and ran the fund’s Quebec operations. Prior to this, he was a partner of Wynnchurch Capital, a $500 million private equity firm based in Chicago and Montreal, where he played a key role in fund raising, and sourcing and monitoring the fund’s early-stage ventures. Between 1987 and 1999, Mr. Desmarais managed Desmarais Capital Corporation.

Mr. Desmarais began his career as a Chartered Accountant at Deloitte & Touche, following which he studied law. In 1985, he was the law clerk for the Chief Judge of the Tax Court of Canada, following which he was the law clerk for Justice Jean Beetz at the Supreme Court of Canada. In 1986, he joined the law firm of McCarthy Tétrault as a securities lawyer.

Additional Terms of the Offering

The Offering is being completed pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 Prospectus Exemptions and therefore the securities issued in the Offering will not be subject to a hold period in accordance with applicable Canadian securities laws. There is an offering document (the “Offering Document “) related to the Offering that can be accessed under the Company’s profile at www.sedarplus.ca and at www.pharmacielo.com. Prospective investors should read the Offering Document before making an investment decision.

In connection with the Offering, the Company will pay a commission or finder’s fee to eligible persons from the gross proceeds raised under the Offering. The Units will be offered by way of private placement in Ontario and such other provinces and territories of Canada and may be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the “US Securities Act”), and applicable state securities laws, and certain other jurisdictions outside of Canada and the United States. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Units in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The Units, Common Shares, Warrants and Warrant Shares issuable thereunder have not been, nor will they be, registered under the US Securities Act and such securities may not be offered or sold within the United States, or to or for the account or benefit of U.S. persons, absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements. This press release does not constitute an offer of Units, Common Shares and Warrants for sale, nor a solicitation for offers to buy such securities.

Financial and Legal Advisors

Bennet Jones LLP has acted as legal counsel and Cormark Securities Inc. as financial advisor for the Proposed Acquisition and Offering.

Grant of Stock Options, Restricted and Deferred Share Units

Effective April 9, 2024, PharmaCielo granted an aggregate of 3,050,000 stock options, 300,000 Deferred Share Units (“DSUs”), and 1,060,000 Restricted Share Units (“RSUs”) to directors, officers, and key employees. The Company also issued 1,545,948 DSUs to settle $340,109 director fees owed. The options and RSUs vest 50% immediately, 25% on the first-year anniversary and 25% on the second-year anniversary. The options are exercisable at $0.22 per share and expire five years from the date of grant. The RSUs, DSUs and options are granted pursuant to the Company’s RSU, DSU and stock option plans, respectively.

Shares for Settlement of Certain Amounts Owing

Today, the Company announced that as approved by TSXV, it issued 639,439 common shares of the Company (“Settlement Shares”), in satisfaction of $134,077 debt owed to certain former service providers of the Company.

The Company also announced that it intends to further issue, subject to the approval of TSXV, up to 1,323,960 Settlement Shares, in satisfaction of $291,270 debt owed to certain service providers of the Company. The deemed price of the common shares to be issued have been determined as C$0.22, being the 20-day Volume Weighted Average Price on the date the board of directors of the Corporation approved issuance of shares, (the “Deemed Price”). The Settlement Shares will be subject to a four-month hold period under applicable Canadian securities laws, starting from the date of issuance of the Settlement Shares.

About PharmaCielo

PharmaCielo Ltd. (TSXV: PCLO) (OTCQX: PCLOF) is a global company, headquartered in Canada, with a focus on ethical and sustainable processing and supplying of all natural, pharmaceutical-grade medical cannabis products to large channel distributors. PharmaCielo’s principal (and wholly owned) subsidiary is PharmaCielo Colombia Holdings S.A.S., headquartered at its cultivation and processing center located in Rionegro, Colombia.

The board of directors and executive team of PharmaCielo are comprised of a diversely talented group of international business executives and specialists with relevant and varied expertise. PharmaCielo recognized the significant role that Colombia’s ideal location plays in building a sustainable business in the medical cannabis industry, and the Company, together with its directors and executives, is executing on a business plan focused on supplying the international marketplace.

For further information:

Ian D. Atacan, Director & Chief Financial Officer
+1 (416) 562-3220
i.atacan@pharmacielo.com

Media and Investor Inquires:
investors@pharmacielo.com

Forward-Looking Statements

This news release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as “expects”, “is expected”, “intends”, “anticipates”, “believes”, or variations of such words and phrases or state that certain actions, events or results “may” or “will” be taken, occur or be completed or achieved.

Forward-looking statements can be affected by known and unknown risks, uncertainties and other factors, including changes to PharmaCielo’s development plans, the failure to obtain and maintain all necessary regulatory approvals relating to the export of cannabinoid products and the import of these products into other countries, TSX Venture Exchange approval, the inability to export or distribute commercial products through sales channels as anticipated due to economic or operational circumstances, risks associated with operating in Colombia, fluctuation of the market price for the Company’s products, risks associated with global economic instability relating to COVID-19 or other developments, risks related to retention of key Company personnel, currency exchange risk, competition in PharmaCielo’s market and other risks discussed or referred to under the heading “Risk Factors” in PharmaCielo’s Annual Information Form for the financial year 2019, and the Management’s Discussion and Analysis for the financial year 2022 which are both available at www.sedar.com. Accordingly, readers should not place undue reliance on forward-looking statements. Except as required by law, PharmaCielo undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

TORONTO, ONTARIO – TheNewswire – January 4, 2022 – MPX International Corporation (“MPX International”, “MPXI” or the “Corporation”) (CSE:MPXI) (CNSX:MPXI.CN) (OTC:MPXOF), a multinational diversified cannabis company, and its subsidiary, Salus International Management Ltd. (“SIM”), a management company currently focused on operations in Southeast Asia, are pleased to announce that Salus Bioceutical (Thailand) Co. Ltd. (“SBT”), in partnership with SIM, is opening a 600-million-baht (C$22,900,000) cannabis/hemp production plant (the “Facility”) in Doi Saket district of Chiang Mai province in Thailand. The Facility will initially produce CBD products to cater to growing international and local demand, whereby THC products and medicine will be developed subject to government approval under applicable laws. Further details with respect to the arrangements between SIM and SBT can be found in the press releases dated June 1, 2021 “MPX International Establishes Operations in Thailand’s Domestic Cannabis Market”, June 3, 2021 “MPX International’s Thailand Venture announces Board and Advisory Appointments” and October 4, 2021 “MPX International’s Thailand Subsidiary Closes US$10 Million Financing and Provides Project Update”.

The world-class Facility is expected to have an annual capacity for the extraction of over 200,000 kilograms of biomass, and production of over 50,000 liters of CBD oil and 90,000 kilograms of isolate powder and water-soluble CBD isolate, making SBT one of the largest cannabis/hemp manufacturing plants in Thailand and the most sophisticated production site outside of North America. The 800 m2 plant covers indoor cultivation and in an additional building, a high capacity extraction and distillation capability developed by Ontario-based extractX Ltd. employing some of the most technologically advanced equipment available in the cannabis industry as well as a medical grade laboratory for hemp and cannabis analysis, which will allow for a unique distillation process, ultimately producing high-yield and quality CBD products. With expertise from MPXI, an emergent global participant in the cannabis industry operating across five continents, SBT will implement best-in-class manufacturing practices into their Thai GMP and EU-GMP compliant medical production facilities. SBT has recently been granted a Hemp Extraction License, which allows SBT to operate and extract hemp flower legally under the laws of Thailand, making it one of the first companies in Thailand with complete licensing for CBD manufacturing.

W. Scott Boyes, Chairman, President and CEO of MPXI and SIM, said: “The emerging market for medical-grade CBD and THC products in Thailand is quickly maturing and the progressive approach of Thailand’s government will potentially make this country the epicenter of medical cannabis cultivation and production for all of Southeast Asia. MPXI is pleased to be playing an integral part in the planning, development, and management of SBT’s Chiang Mai Facility. As a shareholder and participant in the venture, MPXI expects the project to yield near-term revenues and profits that will be materially accretive to the financial performance of MPXI and SIM as well as provide significant upside to the shareholders of MPXI and SIM.”

Amid the global cannabis wave, Thailand, with a population of over 70 million, is a promising national jurisdiction for the industry following its legalization for the medical use of cannabis in 2019. There are an estimated 1,300,000 Thai patients that can undergo cannabis treatment (Julian Nabil Sarwat, Rosalie Schweninger and Igor Senjak, “CC Insights | Thailand Medical Cannabis” (2020) Cannabis Catalysts, CC Insight & Network GmbH, page 26 “Thailand Medical Cannabis”), and with Thailand currently being the third-most visited country by medical tourists in the world (Thailand Medical Cannabis, page 20), the integration of cannabis into the medical tourism industry alone is forecast to bring in US$60 million in 2024  with the total market size at that time estimated at between US$190 million to US$382 million (Thailand Medical Cannabis, page 24). Medical professionals are also encouraging medical cannabis to be considered a cultural heritage aspect of Thailand.

Tanadee Pantumkomon, COO and Director of SIM CEO and Director of SBT said: “We are excited to be taking our first big step in Thailand. The opening of our local CBD manufacturing plant will enable us to better respond to the growing demand for a wide variety of CBD products both in Thailand and worldwide. The facility will create a value chain upstream to downstream as well as providing benefits for all stakeholders – including job opportunities and additional income for local communities.”

SBT will be working closely with the Cannabis & Herbs Institute, Rajamangala University of Technology Isan, where institutional research will be conducted to understand the agriculture and agronomy of cannabis and hemp plants in the tropics as well as the extraction for medical purposes as a precursor for various industrial sectors. Additionally, SBT also aims to participate in developing communities and local farmers in operations for outdoor and greenhouse cultivation of high-CBD/low-THC hemp biomass. SBT has built demonstration sites for the outdoor growing of hemp in five different campuses of the Rajamangala University of Technology Isan to develop cultivation techniques and pass on know-how to local farmers.

As Thailand continues to venture into the market for medical cannabis, various opportunities will open up for future business. As the first North American medical cannabis company to enter the Thai market, SBT will initially be producing EU-GMP compliant medical-grade cannabis products such as CBD distillate, isolate powder, and water-soluble CBD isolate for domestic sales. The company will focus on producing high quality products for the domestic market and aims to dominate the ASEAN community by expanding sales throughout the entire Southeast Asia region. With Thailand declaring itself as an export country, the export potential can be estimated at US$618 million for 2024 (Thailand Medical Cannabis, page 24).

By moving forward with a strong client database and client support, SBT will be branching out into various sectors in the market. Having received interest from various Thailand-based food & beverage, cosmetics, healthcare, supplement, massage and spa, and animal feed manufacturers, SBT will potentially produce CBD distillate/isolate for commercial use by the fourth quarter of 2021. In the pharmaceutical realm, SBT is under the process to qualify the Facility for GMP-grade medical cannabis, and subject to government approval, will produce sublingual tablets and capsules, suppositories, transdermal patches and medical quality edibles containing other medically-beneficial cannabinoids.

The securities issued pursuant to the Offering and the Bridge Loan have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About MPX International Corporation

MPX International Corporation is a multinational diversified cannabis company focused on developing and operating assets across the international cannabis industry with an emphasis on cultivating, manufacturing and marketing products which include cannabinoids as their primary active ingredient. With current operations spanning four continents in Canada, Switzerland, South Africa, Malta, Australia and Thailand as well as evolving partnership and distribution opportunities in other jurisdictions, MPXI continues to position itself as an emergent global participant in the cannabis industry.

About Salus International Management Ltd.

SIM is a private Ontario-based corporation and a partially-owned subsidiary of MPX International Corporation (along with a group of private shareholders). SIM was incorporated to provide design, planning, financing, training, and on-going operational support to cannabis initiatives, partnerships, and joint ventures in Southeast Asia. Its revenue is generated primarily from fees charged for the supply of management services.

About Salus Bioceutical (Thailand) Co. Ltd.

SBT is a joint venture between MPXI, a listed company in Canada (with world-leading and best-in-class concentration and extraction technology), and Thai investors. SBT is initially involved in the cultivation, processing and distribution of high-quality EU-GMP compliant medical-grade cannabis products such as CBD distillate, isolate powder, and water-soluble isolate for the medical community in Thailand, operating for the benefit of the health and well-being of the Thai people, whereby it will develop THC products and medicine, subject to government approval under applicable laws.

Cautionary Statement Regarding Forward-Looking Information

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, MPX International’s objectives and intentions.  Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; the Corporation’s ability to effectively deal with the restrictions, limitations and health issues presented by the COVID-19 pandemic; future cannabis pricing; cannabis cultivation yields; costs of inputs; its ability to market products successfully to its anticipated clients; reliance on key personnel and contracted relationships with third parties; the regulatory environment in Australia, Canada, Malta, South Africa, Switzerland and other international jurisdictions; the ability to complete any future potential transactions and the terms and conditions thereof; the application of federal, state, provincial, county and municipal laws; and the impact of increasing competition; those additional risks set out in MPX International’s public documents filed on SEDAR at www.sedar.com, including its audited annual consolidated financial statements for the financial years ended September 30, 2020 and 2019, and the corresponding management’s discussion and analysis; and other matters discussed in this news release. Although MPX International believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, MPX International disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

For further information about MPXI, please contact:

MPX International Corporation

W. Scott Boyes, Chairman, President and CEO

T: +1-416-840-4703
[email protected]

or visit one our websites:

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Thailand, known for its tough policies against drug trafficking, is taking a page from Canada and other countries and is seeking to lead the way in Asia in legalizing medical marijuana.

The reason? It’s largely economic. Thailand, which in the 1980s was one of the world’s top exporters of cannabis, wants to reap the rewards of the $10 billion-dollar-plus marijuana market. As more countries embrace the medicinal qualities of cannabis, the Government Pharmaceutical Organization — under the Ministry of Public Health — is trying to persuade the military government to approve studying the drug so it can market it for medical use.

“The best strains of cannabis in the world 20 years ago were from Thailand, and now Canada has developed this strain until up to this day, we can’t claim that ours is the best in the world anymore,” said Dr. Nopporn Cheanklin, executive managing director of the GPO. “That’s why we must develop our strain to be able to compete with theirs.”

Though it’s looking to allow medical marijuana testing on human subjects, Thailand’s government wants to maintain its tough reputation regarding drug trafficking. In a recent bust, police seized up to 1,380 kilograms (3,042 pounds) of marijuana and said there has been a recent surge in cases involving amphetamine pills, marijuana, ketamine and “ice” or crystal methamphetamine.

According to state media the government in June destroyed more than six tons of narcotics worth 13 billion baht ($390 million) from a total of 7,245 drug trafficking cases, adding to the 129 tons of narcotics Thailand has destroyed since 1977. The Thai government still maintains that cannabis is illegal and will continue to enforce punishment for those possessing marijuana for recreational purposes, even with the consideration of medical cannabis legalization.

“It does seem hypocritical and cynical to be legalizing medical cannabis but maintaining harsh punishments for recreational users,” wrote Steve Rolles, senior policy analyst for the Transform Drug Policy Foundation in the U.K., in an email. “The punitive model is symptomatic of a wider problem with entrenched prohibitionist thinking; it’s proving hard to shake off despite the obvious cost and evidence of failure.”

Amending Laws

The military government’s cabinet of ministers in May gave the green light to amend the country’s drug laws to allow research on the effects of medicinal marijuana on humans. The bill is currently being debated in the National Legislative Assembly, which is expected to give the nod to legalization in up to nine months before it becomes law. That would make Thailand the first country in Asia to legalize medical cannabis.

The global marijuana market is projected to reach $23 billion by 2022, with an annual growth rate of 22 percent in the five-year forecast, according to Arcview Market Research. Currently the world market value for cannabis is $12.9 billion for 2018 with the U.S. as the leader, yet in four years Canada and California are projected to capture up to 41 percent of the total global market.

Uruguay and Canada are leading the way on recreational cannabis. Germany broke barriers in 2017 for medical use, according to Arcview.

“It will be important for new market entrants like Thailand to get established quickly, however, or existing players like Canada and the U.S. will use their historical advantage to capture and dominate the market sector,” Rolles wrote.

Thailand could have some natural attributes as a marijuana capital. Costs of production could be lower, making it a potentially attractive destination for foreign producers. The Southeast Asia nation’s year-long tropical climate means lower costs for artificial light and temperature controls, paired with Thailand’s previous reputation of marijuana cultivation.

“No other country offers the combination of benefits that Thailand offers within a single jurisdiction,” said Jim Plamondon, vice president of marketing for Thai Cannabis Corp. It is the country’s first legal cannabis company, which according to its website is working with Maejo University to develop products and medicines. “Thailand has not only the large medical tourism industry, it also has an unparalleled system of traditional medicine that is regulated and standardized.”

Medicinal Properties

Medical research into marijuana continues to evolve yet studies show the plant could be used to aide patients with Parkinson’s disease, cancer, seizures and autism. The marijuana plant in Thai history has been used to help with pain, nausea and distress during childbirth and was commonly grown for personal use by field hands looking to relax.

Thailand’s marijuana history was driven strongly by the country’s history with the U.S., said Plamondon. During the Vietnam war, American G.I.s while flying into Thailand for rest and recuperation became exposed to Thai cannabis.

Laws on the books remain tough on marijuana, for both use and sale. Currently, possession of cannabis in Thailand could land its owner in jail for up to 15 years as the plant is a category-5 narcotic drug along with psychoactive mushrooms and kratom, a psychoactive plant similar to opiates that is native to tropical Southeast Asian countries.

The amendment as described by the government’s Office of the Narcotics Control Board’s Deputy Secretary-General Wichai Chaimongkhon is an attempt to make the country “more international” by opening a window to allow marijuana testing on human subjects in order to conduct research or develop medicines.

“If it’s proven that the medicines could cure diseases like Parkinson’s disease, cancer, depression, then I believe it’s a benefit and could create revenue if we export the medicines out to sell in other countries,” Wichai said.

That is a thought mirrored by Thailand’s largest network of private hospitals, Bangkok Dusit Medical Services Pcl, which is prepared to push forward with research and development of medical cannabis once it’s legal, said the group’s assistant chief medical officer Wisut Lajchasaewee.

Private hospitals such as BDMS, state organizations and Thai medical companies would be able to apply for licenses with the Ministry of Public Health to conduct research and experiments using marijuana once the law goes into effect possibly next year.

Worldwide Competition

Pharmaceutical companies, however, may stand to lose out if they don’t adapt quickly enough. The legalization of medical marijuana in some U.S. states has led to a decline in revenue for pharmaceutical companies for pain relievers and sleep aids.

The big pharmaceutical companies operating in Thailand including Pfizer Inc., Novartis AG and GlaxoSmithKline Plc generate some of the highest revenue in the domestic drug industry, netting up to a total of 20 billion baht ($601 million) in revenue in 2015. Their highest-value products are painkillers and fever medication, according to Krungsri Research.

“Thailand is not a country that likes to be the pioneer in the medical industry,” Nopporn said. “But we certainly will not be the last country to do it.”