Ljubljana, Slovenia, Jan. 21, 2020 (GLOBE NEWSWIRE) — Rafarma Pharmaceuticals, Inc. “OTC:(RAFA)” is happy to announce the execution of an exclusive joint venture agreement with MTP MATERIAL CO. LTD. (“MTP”). This marks the first time a U.S. company has entered the Thailand cannabis industry with an agreement of this kind.
MTP is a leading researcher and producer of cannabis and medical Marijuana in Thailand. MTP has an exclusive research agreement with Khon Kaen University and Dr. Monchai Duangjinda, the leading advocate of legalization of medical marijuana in Thailand. The new joint venture of Rafarma and MTP will operate together with Khon Kaen University and Rafarma will hold 49% of all issued and outstanding shares in the new joint-operated company.
Through Rafarma’s purchase of the stake in the Thailand-based business, Rafarma gains access to Khon Kaen University’s state of the art research, production and medical clinic facilities. The medical clinic is currently in operation and is expected to have enormous success as the medical marijuana industry is poised to explode in Thailand. MTP and Rafarma will complement each other’s strengths in optimizing crops, introduction of new products in both Thai and European markets, and in establishing specialized detox centers using cannabis products as permitted by new Thai legislation. These detox centers are a unique and huge competitive advantage for Rafarma. This transaction makes Rafarma the first US company to enter the Thai cannabis and medical marijuana market in this way.
Rafarma CEO Vladimir Dolgolenko stated, “We are excited to start this new venture with MTP. We worked extremely hard to finalize this agreement and I am proud to announce that we were able to complete it without any dilution to current shareholders”.
MTP Managing Director Somchai Khuchumruthai stated, “This opportunity to work with Rafarma is exciting and the technological expertise Rafarma brings has already been extremely helpful–we expect the ongoing relationship to be extremely beneficial”.
Rafarma will continue to update shareholders on the status of this new partnership. The implementation of the detox centers will be an initial focus and is expected to bring immediate and substantial revenues to the company. Rafarma CEO Vladimir Dolgolenko added, “The overwhelming response to the first clinics opening in Thailand has proven that this will be a market that grows at an extremely rapid pace. We believe that this partnership has placed Rafarma in the best possible position to take advantage of what many have deemed the most explosive cannabis market worldwide”.
Khon Kaen University is one of the only three state-authorized institutes that grow cannabis for research and growth. The exclusive agreement MTP already has with Khon Kaen University provides not only an excellent research and development opportunity, but also gives Rafarma the ability to instantly enter the largely untapped Thailand market. The Cannabis industry is projected to grow to US $661 million by 2024 according to an article posted by Bangkok Post. The Asian Cannabis report also estimated the Asian cannabis market could grow as large as US $5.8 Billion by 2024.
Forward-Looking Statements: This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. Except for historical matters contained herein, statements made in this press release are forward-looking statements. Without limiting the generality of the foregoing, words such as “may”, “will”, “to”, “plan”, “expect”, “believe”, “anticipate”, “intend”, “could”, “would”, “estimate,” or “continue”, or the negative other variations thereof or comparable terminology are intended to identify forward-looking statements. Forward-looking statements involve known and unknown risk, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date hereof. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in the Company’s filings with OTC Markets. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
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