Thai Energy Firm Gunkul Pauses £14M Cannabis Venture Amid Regulatory Uncertainty

[snoop1130]

 

Gunkul Engineering, a prominent Thai energy business listed on the Stock Exchange of Thailand (SET), has put a stop to its investments in the cannabis industry due to murky governmental regulations. The company, which plunged into the cannabis and hemp sectors through its subsidiary, GK Hemp Group, has spent nearly £10.9 million on its cannabis project and has now decided to pause any further spending.

 

Prime Minister Srettha Thavisin's administration has hinted at categorising cannabis as a narcotic. This move contradicts Thailand's 2022 decision to decriminalise the plant in a bid to cultivate a new economic sector based on it and its derivative products, such as cannabis oil.

 

Gunkul's Chairperson, Sopacha Dhumrongpiyawut, has called for a clear regulatory framework, outlining if cannabis can be used medically or recreationally, putting age restrictions on purchasers, and limiting sales to certain areas. The lack of clarity has led Gunkul to halt its intended investment, which was initially estimated to reach £37 million.

 

Previously, Gunkul had outlined plans to transform part of its Nakhon Ratchasima wind farm into a cannabis plantation with a target of producing 1.1 tonnes daily. The firm's ambitions stretched to marketing cannabidiol (CBD) oil across several industries, including the pharmaceutical, food, and cosmetics sectors. However, the government's restrictions on allowable CBD content in products have stifled these developmental efforts.

 

Still, despite these limitations, Gunkul's cannabis branch managed to rake in around £80,000 in revenue last year, with expectations to achieve £2.2 million by 2024. Yet, its relative financial impact on the company is minor, as its core energy business makes up approximately 99% of its profits.

 

The reluctance of Parliament to pass a bill regulating cannabis usage signalled a might be possible shift in the government's perspective on the substance, which might compel other businesses to halt their investments or shut down. Yet, Sopacha remains hopeful, feeling that effective enforcement of cannabis control laws could flip this issue into an opportunity for the industry.

 

File photo for reference only. Courtesy of Google

 

-- 2024-05-15

 

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[bob smith]

you just could not make this up could you!

 

this place is a laughing stock.

 

bob.

[crazykopite]

It makes sense to holdout until this flip flop government can make a decision as it’s pointless investing many millions only to be told that the plant has been upgraded to an illegal drug category everything was going well until a certain individual was allowed back into the country .When I look at the current situation this government is in I say bring back the old PM at least he didn’t flip flop like the current one look at the digital wallet they promised and have failed to introduce it

[hotchilli]

14 hours ago, snoop1130 said:

Gunkul's Chairperson, Sopacha Dhumrongpiyawut, has called for a clear regulatory framework, outlining if cannabis can be used medically or recreationally, putting age restrictions on purchasers, and limiting sales to certain areas

It should only be sold to medical facilities for processing and only prescribed by bonifide doctors via a prescription.

Recreational use should be banned outright.

[Classic Ray]

As I commented on another post, cannabis use is upsetting the big brewing families who see a threat to their monopoly of intoxicating the population legally. 
 

They will keep pressure on the Government to recriminalise cannabis to protect their profits.

[Pouatchee]

11.65$ canadian a gram in a dispensary for top shelf QC weed comes out to about 305bht. and the growers here are making noise saying they want to quit growing cos the prices dont make for profit. seems to me that even at 200bht a g. without any QC and likely full of pesticides. here in thailand it still a good wage for these growers. bunch of turncoats these guys are...

[BritManToo]

1 minute ago, Pouatchee said:

11.65$ canadian a gram in a dispensary comes out to about 305bht. and the growers here are making noise saying they want to quit growing cos the prices dont make for profit. seems to me that even at 200bht a g. here in thailand is still a good wage for these growers. bunch of turncoats these guys are...

30bht/GM is the real price.

[Pouatchee]

3 minutes ago, BritManToo said:

30bht/GM is the real price.

 

Im going by what i heard for top shelf here... 30bht a G must be for outdorr grown. Than again, i wouldnt know. havent bought any weed here so far. my COPD wont allow for it. 

[BritManToo]

13 minutes ago, Pouatchee said:

 

Im going by what i heard for top shelf here... 30bht a G must be for outdorr grown. Than again, i wouldnt know. havent bought any weed here so far. my COPD wont allow for it. 

Only 10bh/gm for outdoor.

I paid 300bht for this 30gm bag.

[Purdey]

Economy? Who cares? 

Employment? Let them eat dirt.