Krabi cannabis factory seized in second raid as Israeli promoter arrested. Police find illegal production after licence suspension, seize 29kg extracts, freeze assets, and probe nominee ownership in widening foreign business crackdown across Thailand.
A once-thriving cannabis production business with valid licences was seized by police and authorities in Krabi last Saturday. At the same time, the Israeli principal was arrested and taken into custody. The enforcement action followed the suspension of the company’s licence to operate the plant as a cannabis manufacturing facility at the end of January by local authorities after an initial raid. That raid was linked to an investigation into the company’s legal ownership and saw four arrests as police examined its finances.
An Israeli-owned cannabis extract manufacturing facility in Krabi was raided again on Saturday, March 14, officials said. The operation marked the second enforcement action at the same site within weeks. However, on this occasion, the business was entirely seized by authorities and the foreign promoter arrested.
Earlier, authorities had already inspected the premises over suspected legal violations. However, investigators returned after new intelligence indicated continued activity. This time, officers from multiple agencies joined the operation.
The raid last Saturday came after the licence to operate the cannabis processing and distribution concern was rescinded following the first raid at the end of January.
Raid follows licence suspension and renewed intelligence of continued cannabis production activity at site
Previously, the facility was fully licensed. However, the raid in January targeted the ownership of the company, which was believed to be de facto controlled by an Israeli businessman.
Last Saturday, officers acted under a search warrant issued by the Krabi Provincial Court. The warrant followed intelligence reports that large-scale cannabis extract production and distribution persisted at the site.
The facility is located in Sai Thai subdistrict in Mueang Krabi district and operated under the name Cannazon Co. Investigators said the site had been converted into a full production compound. Inside, officers found multiple cannabis strains under cultivation. The growing areas used controlled lighting, water systems, and regulated temperatures.
In addition, an extraction room was operating within the same structure. Moreover, authorities identified modern production equipment throughout the building. Officials said the machinery could produce a range of cannabis extract products. As a result, the setup was classified as a factory-style operation.
Police seize cannabis extracts and equipment while arresting Israeli promoter at Krabi facility raid
During the raid, officers seized more than 29 kilograms of cannabis extracts. They also confiscated numerous pieces of manufacturing equipment. At the same time, a 31-year-old Israeli man was arrested at the scene.
He was identified as Moshe by authorities. Investigators said he presented himself as the business owner. Furthermore, police believe he was the main promoter behind the project. Consequently, he now faces multiple criminal charges linked to the operation.
Previously, the facility had been licensed in Thailand from 2023. However, its licence was suspended at the end of January, linked with legal action against the company over its ownership structure.
Despite this, officials said the business resumed operations during the suspension period. Investigators found ongoing production at the site. In addition, cannabis products were being sold locally in Krabi. Authorities also reported online sales activity reaching customers nationwide. Therefore, the operation continued despite regulatory action.
Licence suspension followed first raid by Krabi health officials over ownership and legal compliance issues
The plant was licensed to process and deal with traditional herbs such as cannabis. Nonetheless, this licence was suspended at the end of January 2026 by the Krabi Health Department. This followed the first raid on the premises.
Earlier, the same premises had been searched by police and officials as part of a separate investigation. That operation focused on ownership structure and legal compliance. Specifically, authorities examined the use of Thai nominee shareholders.
The Department of Business Development led that investigation alongside several agencies. These included provincial officials, police, immigration, and tourism authorities. Together, they targeted potential violations of the Foreign Business Act of 1999.
Initially, the company was registered in March 2023 under 100 per cent Thai ownership. However, investigators later found significant changes in the shareholder structure. Subsequently, an Israeli national became a director and shareholder. Thai nationals remained listed, but authorities said the structure concealed foreign control.
Foreign ownership exceeds legal limit as investigators uncover nominee shareholder structure in company
According to officials, foreign ownership rose to 59 per cent. Evidence indicated the use of nominee arrangements. Therefore, Thai individuals allegedly held shares on behalf of foreign interests.
Under Thai law, foreigners cannot control more than 49% of a Thai company.
In addition, the company increased its registered capital from 4 million baht to 6 million baht. The declared business purpose covered production, sale, export and processing of controlled herbs. Financial records reviewed by investigators showed a turnover of 2.39 million baht. The company reported profits of about 400,000 baht per year.
However, authorities expanded their financial review beyond these figures. Further investigation revealed more than 40 million baht circulating through related accounts. Consequently, these transactions are now under detailed scrutiny.
Authorities probe financial links and arrest suspects tied to nominee scheme and illegal business activity
Moreover, authorities identified links to a local lawyer connected to the operation. The lawyer allegedly facilitated financial transactions tied to the business. Officials said the role of additional individuals remains under investigation.
On the same day as the earlier January operation, authorities arrested four individuals. These arrests were made under warrants linked to the nominee shareholding scheme. They were accused of enabling illegal foreign business activity.
Meanwhile, inspections revealed extensive modifications at the Krabi facility. The building had been redesigned specifically for cannabis cultivation. Controlled systems supported continuous plant growth and processing.
Additionally, the premises functioned as a retail outlet. Cannabis products were sold directly to customers on-site. Tourists were also allowed to consume products at the location. At the same time, online sales channels expanded distribution nationwide. As a result, the operation reached customers beyond the local area.
Assets seized and operations shut down as authorities intensify crackdown on foreign-controlled businesses
Following last Saturday’s raid, authorities escalated enforcement measures. The plant and all production equipment were seized immediately. Bank accounts linked to the operation were also frozen. Officials said the total value of seized assets exceeded 3 million baht.
This included the building, machinery, and financial holdings. Therefore, the business operation was completely shut down and seized.
Investigators stated that the case reflects broader enforcement priorities. Authorities are focusing on foreign ownership violations across multiple sectors. In particular, they are targeting the misuse of Thai nominee shareholders.
The Department of Business Development confirmed ongoing monitoring efforts. It had tracked the company’s activities for over two months. Evidence suggests deliberate manipulation of registration structures. Therefore, authorities are expanding investigations into related networks and financial flows.
Since September last year, officials have reported numerous similar arrests. Many involve foreign-operated businesses in Thailand. These cases often target sectors serving tourist demand. In particular, cannabis-related businesses have drawn significant attention. Manufacturing and retail operations are under closer review. Motorbike rental businesses have also been investigated.
Wider crackdown targets foreign-controlled tourism businesses and property developments across Thailand
At the same time, the operation of hotels, resorts, and the development of villas and residential properties for foreigners, especially on tourist islands such as Koh Phangan, have been targeted. Authorities said these cases follow a consistent pattern of nominee use. Consequently, enforcement agencies have increased coordinated actions nationwide.
In the Krabi case, investigations remain active. Authorities are tracing financial transactions and identifying connections. They are also examining any linked companies or networks. Meanwhile, the arrested Israeli national remains in custody pending legal proceedings.
Charges include possession, manufacturing, and sale of cannabis without a valid licence. In addition, further charges may arise under business law violations.
Investigation continues as authorities warn more arrests possible over breaches of Thai business laws
So far, no additional suspects have been publicly named. However, authorities confirmed that inquiries are ongoing. More arrests remain possible as the investigation develops.
Overall, the March 14 raid came after the Israeli promoter ignored the licence suspension by local authorities following the January raid.
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Earlier enforcement actions had not halted operations despite arrests being made. Nonetheless, the owner should have suspended activities when the licence to cultivate and deal with cannabis was suspended. Therefore, stronger measures were implemented. Finally, officials reiterated that compliance with licensing and ownership laws is mandatory, as investigations continue into the affair.
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