Meichen, Sanlux Successively Layout Industrial Cannabis Business

- May 09, 2019-

On May 7, Meichen Ecological announced that it has established a strategic partnership with Kelan Group through its wholly-owned subsidiary to cooperate on the research and development, breeding, planting and application promotion of industrial cannabis. On the same day, another rubber company in the industry, Sanlux, announced that it had reached a preliminary cooperation intention in the province of Fengsari, Laos, and will carry out medicinal cannabis-related business in the local area.


The hot air of industrial cannabis was blown into the Chinese capital market in early 2019. It was only a drug in the previous cognition. With the understanding of industrial cannabis and the liberalization of relevant policies, it seems to have become a capital chase. The next vent.


Up to 570 million, Meichen enters new industry


Meichen Eco said to China Rubber that the company will establish an industrial cannabis planting base with Kelan Group in Australia. The cooperation includes all aspects of industrial cannabis breeding, planting, product processing and application promotion. The total investment is no more than 1.2. A hundred million Australian dollars (about 570 million yuan).


It is expected that the preliminary work such as project site selection and process approval will be completed by November 2019. After the completion of the preparatory work, the two companies will establish a joint venture in Hangzhou, and Meichen Eco will hold 67% of the new company through the subsidiary.


Meichen Eco is full of confidence in the project, saying that if the project can be implemented and promoted smoothly, it can further boost the company's operating performance, and the new industry can also enhance its comprehensive competitiveness and corporate value.


Cooperation between government and enterprises, Sanlix takes the pace


In an interview with this reporter, Sanlux pointed out that the company's industrial marijuana is seeking new development, exploring product and business transformation, and actively revitalizing existing assets and promoting the development of the company.


The company said that the industrial cannabis business can also be seen as an "additional clause", in response to the Laos government's medicinal cannabis project, the main purpose of the contract is to increase investment in rubber planting in Laos and expand the ability of deep processing of rubber products.


Sanlix has more than 75,000 acres of rubber forest park in Fengshali Province, Laos. Among them, Sun Company has a wholly-owned planting area of more than 27,000 mu, with more than 500,000 rubber trees, and a planting area of 48,000 with Lao rubber farmers. mu.


The relevant person in charge also stressed that its existing resources and local climate in Laos have given a suitable “growth environment” for industrial cannabis business. The company is expected to carry out CBD (medicinal refining ingredients) on the basis of medicinal cannabis cultivation. The investment in refining and processing further extends the industrial chain and increases the added value of products.


Capital flame of industrial cannabis


Along with the Chinese stock market, which has been rising in the 2019 New Year, industrial marijuana, a strange and mysterious plant, has become a household stock market artifact.


Listed companies have rushed into the industrial cannabis industry, and once the information on industrial marijuana is announced, its share price has also risen sharply, forming a miraculous phenomenon in the capital market that the "hemp" will rise.


The reflection of industrial cannabis in the capital market first originated from the American continent on the other side of the ocean. Since last year, thanks to the loosening of industrial cannabis-related policies in the US states, the North American capital market has ushered in a surge in stocks of industrial cannabis-related companies.


Canadian medical cannabis planting and processing company Tilray, the stock price soared 12 times in two months, the world's first cannabis index fund ETFHMMJ returns more than 50% in the first three months of this year.


On January 16th, the listed company of China listed company received the “Yunnan Industrial Cannabis Planting Permit”, and will carry out production and operation activities in the industrial cannabis related field in the future. Then the company’s share price will continue for 7 consecutive days, with the highest increase in 3 months. Nearly 5 times, it became the first share of the A-share marijuana concept.