A number of pharmaceutical companies aborted the industrial cannabis project
In early 219, the new term "industrial cannabis" came into people's sight. Now, after more than a year, only Yunnan and Heilongjiang provinces have been approved by government departments to legally grow, process and sell industrial cannabis, and they have not been approved for medical use. There is great uncertainty about whether and when the domestic application end and demand end of industrial hemp can be liberalized, and there is also great uncertainty about whether and when the relevant policies can be liberalized in the future. Some enterprises have to give up in the process of promoting the project.
On July 24th this year, Huaren Pharmaceutical announced that it had decided to terminate the industrial hemp project because of great changes in the domestic and international economic situation and market environment.
in March 219, huaren pharmaceutical co., ltd., Yunnan suma biotechnology co., ltd. (hereinafter referred to as "Yunnan suma") and Hou Jie signed the cooperation framework agreement, and the three parties intend to build an industrial hemp green factory in Yunnan to build the first industrial hemp greenhouse planting base in China. After the above news was released, the share price of Huaren Pharmaceutical rose by more than 2% for three consecutive trading days. On April 26, 219, Yunnan Hanhua Industrial Hemp Planting Co., Ltd., established by the three parties, made no progress after obtaining the business license.
Erkang Pharmaceutical also signed the Cooperation Intention Agreement with Yunnan Suma. On March 28, 219, Erkang Pharmaceutical announced that the company intends to set up an equity investment fund with Yuangui Assets to subscribe for no more than 1% equity of Suma Bio, and conduct research and exploration in the field of industrial hemp. Three months later, Erkang Pharmaceutical established Yunnan Haner Industrial Hemp Technology Co., Ltd. together with Yunnan Suma and other partners. On June 12 this year, Erkang Pharmaceutical announced that the above cooperation intention was terminated because the interested partners of the final investment target of the proposed fund could not reach an agreement on the valuation of the target.
Shouxiangu also announced on April 28th this year that due to the fact that Yunnan Shouxiangu (established on April 18th, 219) has not obtained the industrial hemp planting license, the project has not made substantial progress, and the company signed an investment cooperation agreement with Shunhao Co., Ltd. to cancel the established Yunnan Shouxiangu Company. Except for the research project "Breeding of New Varieties of Cannabis with High Quality and Development of Key Technologies for Efficient Preparation of Cannabidiol", there is no business related to industrial cannabis in Shouxian Valley.
The epidemic situation in COVID-19 affected the progress of industrial hemp project
Except for enterprises that aborted the project, enterprises including Rheinland Bio and Guizhou Bailing admitted that the project was not progressing smoothly due to the epidemic situation in COVID-19.
rheinland announced its entry into the field of industrial hemp in April 219, and announced in May of that year that it planned to invest in the construction of "Industrial Hemp Extraction and Application Project" in the United States, covering two parts: the factory and the R&D center, with an estimated total investment of about 42 million yuan. In July 219, Rheinland Bio selected the land for the construction of an industrial cannabis extraction plant in the United States and signed a land purchase contract. In September 219, Rheinland announced that it planned to change the use of raised funds of about 33 million yuan, and changed the original fundraising project "Stevia standardized planting base construction project" into "industrial hemp extraction and application engineering construction project".
on July 9 this year, in the reply to the inquiry letter of the 219 annual report, Rheinland Bio mentioned that by June 3, 22, more than 5% of the civil works and 3% of the public facilities of the industrial hemp project had been completed, and the plant extraction and production equipment was also under construction. The industrial hemp project has invested 14 million yuan, the investment progress is basically the same as expected, and the feasibility of the project has not changed significantly. However, affected by the global COVID-19 epidemic, there is a possibility of adverse effects on the subsequent engineering construction and the delivery, installation and commissioning of production equipment.
Guizhou Bailing also mentioned in the 219 annual report released in April this year that due to the epidemic situation, the industrial cannabis cooperation project was suspended. On May 24th last year, Yunnan Hongling, a wholly-owned subsidiary of Guizhou Bailing, signed the Strategic Cooperation Agreement on Industrial Hemp with Heilongjiang Hanrong Hemp and Harbin Research Institute of Medical Science (Harbin Research Institute), intending to carry out share reform of Hanrong Hemp. After the share reform is completed, Yunnan Hongling holds 7% of the shares and the original shareholders hold 3%. After the completion of the share reform, Yunnan Hongling cooperated with Harbin Research Institute in research and development, and at the same time obtained the license for planting and extracting industrial hemp in Heilongjiang Province as planned. In addition to the progress of the project affected by the epidemic mentioned in this reply, Guizhou Bailing has no more progress announcements about industrial cannabis.
The industrial hemp projects of many enterprises are still in progress
Besides stopping and making slow progress, the industrial hemp projects of these enterprises are still in progress.
On September 5, 219, Fuan Pharmaceutical announced that it plans to acquire 51% equity of Red Realty Company and the corresponding rights and interests of shareholders for US$ 73 million. The latter has a unique planting and processing place approved for the license of planting and processing medical cannabis, and plans to expand the research and development and production base of medical cannabis and CBD products on this plot. The semi-annual report in 22 shows that Fuan Pharmaceutical has completed the acquisition of Red Realty Company. In the next step, it will actively promote the construction of its medical cannabis project to be completed on time, put into operation as soon as possible, generate benefits, and complete this year's profit target.
Fangsheng Pharmaceutical also mentioned in the semi-annual report in 22 that on the basis of successful trial planting in the previous year, the planting area of industrial hemp was steadily expanded in the first half of this year. In addition, the construction of the industrial hemp extraction and processing base in Chuxiong, Yunnan Province is progressing smoothly, the development of various terminal products is also being carried out in an orderly manner, and the expansion of new business is progressing steadily as planned.
Renhe Pharmaceutical Co., Ltd. also mentioned in the semi-annual report of 22 that the refinancing project of non-public offering of shares will be launched in April this year, and the funds to be raised will not exceed 833.85 million yuan, which will be used for four projects, such as "Renhe Shoukaku Industrial Hemp Comprehensive Utilization Project", to fully expand the work of big health industry and emerging industrial hemp industry.
in the first half of 22, Zixin Pharmaceutical Co., Ltd. introduced the industrial hemp seeds of the Dutch subsidiary Fytagoras into China, and completed the introduction of three kinds of industrial hemp seeds, and carried out the seed cultivation work in the science and technology greenhouse in gannan county, Qiqihar City, Heilongjiang Province. At the same time, we plan to develop products with industrial hemp as the main raw material by using the technology of breeding, cultivation, research on bioactive components and compound extraction of industrial hemp of Dutch subsidiary, and provide technical services related to industrial hemp crop cultivation for other enterprises, so as to promote the industrial layout of the company in the domestic industrial hemp field as soon as possible.
Muya Agriculture acquired by Longjin Pharmaceutical Co., Ltd. is one of the early enterprises engaged in the cultivation of mosaic industrial hemp in Yunnan Province, with a planting area of over 1, mu in 219. Longjin Pharmaceutical said in the semi-annual report in 22 that Muya Agriculture has determined the fingerprint of industrial hemp and the monitoring method of main chemical components, and promoted the reconstruction and expansion of warehouses and applied for EU organic certification.
Proofread Yang Xuli