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.

On July 24, when the boots landed, Huaren pharmaceutical announced that it would terminate the cooperation agreement on the industrial hemp project.

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.

On April 26, 2019, according to the cooperation agreement signed with the partner, Yunnan Hanhua industrial hemp planting Co., Ltd. (hereinafter referred to as Yunnan Hanhua) completed the industrial and commercial registration.

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.

Shell finance reporter of Beijing News noted that the highest closing share price of Huaren Pharmaceutical Co., Ltd. last year also appeared in April 2019, when listed companies frequently announced industrial hemp projects.

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.

It seems that in the first half of last year, the concept of hemp production in Jilin Province and even in Chinas hemp industry has been expanded.

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 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.

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.

On July 9, 2020, when replying to the inquiry letter of the annual report, Rhein said: affected by the global new epidemic situation, the development of industrial hemp market has been seriously affected, and the exhibition has been postponed. At the same time, the companys U.S. factory is under construction, and has not accumulated large sales orders.

As of June 30, 2020, the feasibility of the industrial hemp project has not changed significantly, and it is still progressing in accordance with the planned plan. However, due to the global impact of the new crown epidemic, the production capacity of equipment manufacturers is limited, international flights are reduced, and the entry of Chinese people into the United States is restricted, which may face the challenge of prolonged construction period in terms of the timely completion of engineering construction and the timely delivery, installation and commissioning of production equipment. Rhine biological said.

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