Farmmi (FAMI) Stock Climbs On Shareholder Update

Farmmi Inc (NASDAQ: FAMI) is screaming for the top in the premarket hours this morning and for good reason. The company issued a press release outlining several updates to investors surrounding its growth through both acquisitions and organic efforts. Here’s what’s happening:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

FAMI Announces Update

In a letter issued to shareholders by way of press release, Ms. Yefang Zhang, Farmmi’s Chairwoman and CEO at Farmmi offered several updates. First and foremost, the company provided an update on the acquisition of Jiangxi Xiangbo Agriculture and Forestry Development, which opens the doors to several opportunities. 

Along with the acquisition comes 14,438.5 MU of economic forest, which equates to about 2378.6 acres. This land has been used in the cultivation and production of Moso Bamboo, Camellia Oleifera, and Chinese Fir trees, three products of substantial value and demand in China and around the world. 

FAMI also pointed to updates in its new Health and Wellness Business, establishing four new subsidiaries to accelerate the growth of this arm of the company. The company is expected to produce health and wellness food products to address an increasing number of people suffering from sub-health and chronic diseases. 

To that end, the company said that it’s currently working with several domestic and foreign scientific research institutions in its efforts to develop a homologous series of products. 

The company is also looking for opportunities to invest in the rehabilitation and elderly care management sector, one that’s growing quickly in China thanks to an aging population. 

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Final Thoughts

All told, the news released by Farmmi proved to be overwhelmingly positive. The company’s acquisition will drive significant revenue nearly immediately as a result of the ownership of thousands of acres where in-demand products are grown. On top of that, the company’s entrance into the health and wellness space shouldn’t be discounted, especially considering its goal to enter the elderly care and rehabilitation sector. 

Nearly 20% of China’s population is aged 60 and older, and that percentage is expected to grow substantially in the coming years. By catering to this population, the company will benefit greatly from the growth in demand for elderly care institutions should the company quickly dive into the space. All told, today’s news is exciting, setting the stage for tremendous growth ahead. 

Don't Miss the Next Big Story

Join our free mailing list below to receive real-time, actionable alerts!