BEIJING, Aug. 02, 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 the Company entered into a strategic cooperation agreement (the “Agreement”) with Shanxi Yushe County Xunmengyuan Construction Management Co., Ltd. (“SYCX”) on July 29, 2019 to jointly construct China’s first Industrial Hemp Technology Living Museum (the “Museum”).
Pursuant to the Agreement, the Company plans to acquire 51% of SYCX to establish an industrial hemp museum 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 construct 9 sections for the Museum including an international industrial hemp botanical garden, a China industrial hemp historical and cultural center, an anti-drug education publicity center, an industrial hemp experimental base, an industrial hemp industry research institute, an industrial hemp food production center, an CBD drug and cosmetic products experience hall, an oxygen bar and a hemp themed music hall.
SYCX is located in Yushe County, Jinzhong City, on the bank of the Turquoise River in the hinterland of Taihang Mountain with beautiful scenery and green mountains. SYCX began development in 2017, investing RMB210 million. At the start of 2019, SYCX began business operations, drawing on the nearby Jinzhong City, Shanxi Province. SYCX attracts visitors for cultural tourism, leisure and holidays, and entertainment performances.
Mr. Yuying Zhang, Chairman and Chief Executive Officer of Shineco, commented, “The world industrial hemp industry is in the early stage of its comprehensive utilization of the material. China's hemp planting area accounts for 50% of the world, and it is basically in the original state of development and utilization, and its output value only accounts for about 5% of the global. Our goal to construct the Museum is to apply modern science and technology to develop the industrial hemp industry, focus on the R&D and production of CBD products in the development of the industrial hemp industry, improve the quality of long-standing hemp products as well as popularize the scientific use of beneficial substances in industrial hemp industry and away from drugs. I believe that Industrial Hemp Technology Living Museum will play an active role in the development of the industrial hemp industry and provide a forum to present these issues.”
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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