Industrial hemp doesnt smell good? Cooperation on related projects of several listed companies terminated

 Industrial hemp doesnt smell good? Cooperation on related projects of several listed companies terminated

The industrial hemp project, which took more than a year, was terminated, and Huaren pharmaceuticals share price had already fallen

On March 20 this year, an investor asked Huaren pharmaceutical on the interactive platform, how many mu of marijuana planting area this year? When will the planting begin? On April 3, Huaren pharmaceutical only informed it of the cooperation of relevant projects, but did not give a clear answer to the above questions.

According to the previous announcement, Huaren pharmaceutical signed a cooperation agreement with Yunnan Suma Biotechnology Co., Ltd. (hereinafter referred to as Yunnan Suma) and Hou Jie, a natural person, on April 2, 2019, stipulating that all parties will jointly contribute to establish a joint venture company to build an industrial university relying on its technical and resource advantages in industrial hemp breeding and greenhouse cultivation Hemp greenhouse planting base.

Huaren pharmaceutical said, due to the great changes in the economic situation at home and abroad and the market environment, according to the companys development strategy and actual operation situation, after the deliberation of the companys presidents office meeting and friendly negotiation with the trading party, all partners decided to terminate the project, and signed the termination of cooperation agreement on July 24, 2020 All contracts, agreements and other legal documents signed are cancelled or terminated, and all parties will cancel Yunnan Hanhua in accordance with the agreement on termination of cooperation.

On April 10, 2019, the closing price of Huaren pharmaceutical was 8.15 yuan / share, and the corresponding total market value was 9.635 billion yuan. Now, as of July 24, 2020, the stock price of Huaren pharmaceutical was 4.16 yuan / share, corresponding to the total market value of 4.918 billion yuan.

Industrial hemp projects such as Erkang pharmaceutical and Rhine biology are terminated or not progressing smoothly

Now, more than a year has passed, the heat of industrial hemp is no longer hot, and Huaren pharmaceutical is not the only listed company to terminate the cooperation of related projects.

On May 6, 2019, Hangzhou saishi Garden Group Co., Ltd., a wholly-owned subsidiary of Masson ecology, signed a framework agreement with Careline Group Australia Pty Ltd (Chinese Name: Australia Kelan group). The two sides established strategic cooperation relations in the research and development, breeding, cultivation, application and promotion of industrial hemp.

On April 2, 2020, Meichen ecology said that the above agreement was terminated because there was no substantial progress in the cooperation between the two sides.

However, different from Huaren pharmaceutical, although this cooperation has been terminated, Meichen ecology said: the company will continue to use various resources and advantages to promote the rapid implementation of relevant cooperation in the field of domestic and international industrial hemp, sustainable and healthy development, and enhance the competitiveness of the company.

On March 28, 2019, Erkang pharmaceutical and Shanghai Yuangui Asset Management Co., Ltd. (hereinafter referred to as Yuangui asset) and Yunnan Suma Biotechnology Co., Ltd. (hereinafter referred to as Suma bio) signed a cooperation intent agreement, in which Erkang pharmaceutical and Yuangui asset intend to establish an equity investment fund, the scale of the fund is tentatively set at no more than 52.5 million yuan, and it is planned to subscribe for no more than 10% equity of Suma bio. Erkang pharmaceutical and Su Ma biology plan to carry out joint research and exploration in the application field of industrial hemp, and promote the application of the companys new pharmaceutical excipients.

On April 2, 2019, Erkang pharmaceutical and Yuangui asset signed the project investment confirmation letter on the proposed establishment of equity investment fund Hangzhou Yuanchen equity investment fund partnership (limited partnership); on June 10, 2019, Erkang pharmaceutical, Yuangui asset and sumabio signed the supplementary agreement of cooperation intention agreement on the return of earnest money and other follow-up matters.

On June 12, 2020, Erkang pharmaceutical announced that as the potential partners of the final investment target of the proposed fund could not reach an agreement on the valuation of the target, after consensus, all parties agreed to terminate the agreement of intent to cooperate.

On the other hand, a number of listed companies admitted that their industrial hemp projects were not progressing smoothly.

On April 21, this year, in its 2019 annual report, Leda Co., Ltd. mentioned that industrial hemp related industries are in the early stage of preparation and construction, especially affected by the epidemic situation, and can not achieve a major breakthrough in a short period of time.

Later, in reply to the inquiry letter of the annual report, Leda said that Yunnan Voda (a company jointly funded by Leda Biotechnology (Shanghai) Co., Ltd., a wholly-owned subsidiary of Leda Co., Ltd. and hemp Investment Group Co., Ltd.) started the environmental impact assessment of the project on February 1, 2020. During this period, affected by the domestic epidemic situation control, it won the environmental protection of Kunming Economic and Technological Development Zone on April 20, 2020 At present, Yunnan Voda has sent trial production samples of heating and non combustion (HNB) products to customers in North America, Europe, Asia and other countries and regions to collect feedback on the use experience of products through channels. Due to the overseas epidemic situation has not ended, channel customers have not yet returned to work, and the international logistics channel is not smooth, resulting in normal business activities can not be effectively carried out.

Due to the uncertainty of the epidemic situation and other major reasons, there is uncertainty on the date when the project will be put into operation. The implementation of Voda project in Yunnan is affected by many factors such as epidemic situation, regulatory laws and regulations, market changes and so on, and faces uncertainty risks. The company said.

In response to the inquiry letter on September 2020, the annual report of Rhein industry was seriously affected. At the same time, the companys U.S. factory is under construction, and has not accumulated large sales orders.

Source: Yang Zeyu, editor in charge of Beijing News_ NF6036