GUNKUL Joins Up with THCG Group to Invest in Hemp and Cannabis-Related Businesses

Gunkul Engineering Public Company Limited (GUNKUL) announced in refer to Board of Directors’ Meeting held on 24th September 2021, has resolved to approve the investment and authorize the Executive Committee to proceed with G.K. Hemp Group Company Limited (GKHG) (a subsidiary) to purchase 50 percent of the ordinary shares and increase the capital in the type of preferred shares of THCG Group Company Limited (THCG) to operate hemp and cannabis cultivation business for distribution, including production and selling products that derived from hemp and cannabis, with a value of this investment not exceeding 250,000,000 baht.

On 7th October 2021, GUNKUL entered into the transaction, which was the date of the change from the former shareholder to a new shareholder.

The acquisition of 50 percent of ordinary shares and investment by increasing capital in the type of preferred shares of THCG for the purpose of investing in hemp and cannabis-related businesses. It is a business of cultivating, selling hemp and cannabis, including the production and distribution of hemp and cannabis products, which can support the company’s growth in both assets and earnings. As such business is considered a New S Curve that the company intends to work with partners to become a leader in the hemp-cannabis business from upstream to downstream.

In addition, the company considers that such business is in line with the National Strategic Plan on investment plan in health promotion businesses. This also links to other industries that can be further developed into downstream products, whether food and pharmaceutical products; such as beauty products, herbal drinks for health, etc.

The company is able to recognize income and returns from such business since the investment by taking into account the return on investment in accordance with the company’s policy criteria.