BEIJING, Aug. 01, 2019 (GLOBE NEWSWIRE) -- Shineco, Inc. ("Shineco" or the "Company"; NASDAQ: TYHT), a producer and distributor of Chinese herbal medicines, organic agricultural produce, specialized textiles, and various health and well-being focused plant-based products in China, announced today that it entered into a strategic cooperation (the “Agreement”) with Shanxi Hongtian Jiali Agricultural Technology Co., Ltd. (“Hongtian Jiali”) on July 29, 2019. Hongtian Jiali is a leading industrial hemp agriculture technology company in Shanxi province of China.
Hongtian Jiali, located in Jinzhong City of Shanxi province, processes and sells industrial hemp oil, industrial hemp protein powder, industrial hemp oligopeptides and other products. Hongtian Jiali has been granted 4 patents for industrial hemp processing by the State Intellectual Property Office.
Pursuant to the Agreement, the Company plans to acquire 51% of Hongtian Jiali to establish an industrial hemp park in Shanxi province of China. The consideration is in stock and cash with amounts yet to be determined. As part of the Preliminary Agreement, the Company expects to, by 2020, complete planting a target of 100,000 mu (approximately 16,474 acres) of industrial hemp, build a comprehensive industrial hemp product system, and implement the industrial upgrade of hemp food products.
Approval for the industrial park was obtained from the provincial government of Shanxi in April 2019.
Mr. Yuying Zhang, Chairman and Chief Executive Officer of Shineco, commented, “The acquisition is an important part of Shineco's industrial hemp industry strategy. Hongtian Jiali is committed to inheriting the 2,700-year history of industrial hemp and expanding the development and utilization of hemp to traditional health food. The Company and Hongtian Jiali will respectively leverage their resource advantages with the intention of integrating resources and optimizing their competitiveness and overall profitability in the industrial hemp business ecosystem. The hemp food industry will keep pace with the times, meet the needs of the people for the new era for healthy food, and enhance peoples’ quality of life.”
About Shineco, Inc.
Incorporated in Delaware in August 1997 and headquartered in Beijing, China, Shineco is a holding company. Through its subsidiaries and variable interest entities, Shineco undertakes vertically- and horizontally-integrated production, distribution, and sales channels to provide health and well-being focused plant-based products in China. Utilizing modern engineering technologies and biotechnologies, Shineco produces, among other products, Chinese herbal medicines, organic agricultural produce, and specialized textiles. For more information about Shineco, please visit http://tianyiluobuma.com.
This press release contains information about Shineco's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. Shineco encourages you to review other factors that may affect its future results in Shineco's registration statement and in its other filings with the Securities and Exchange Commission.
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