Shineco Inc (NASDAQ: TYHT) is rocketing in the market this morning, and for good reason. The comapny announced that it has established a subsidiary that is centered around the cannabis industry.
With so much investor interest in cannabis at the moment, it’s not surprising to see that excited investors are pushing the stock for the top. Today, we’ll talk about:
- The establishment of the cannabis subsidiiary;
- What we’re seeing from TYHT stock as a result; and
- what we’ll be watching for ahead.
TYHT Stock Gains On Cannabis Subsidiary Announcement
As mentioned above, Shineco is having a great day in the market today after announcing that it will be moving into the cannabis space. The announcement came via press release early this morning.
In the release, the company said that it has established Beijing Tenjove Newhemp Biotechnology Co., Ltd., as a wholly-owned subsidiary. The new subsidiary was established on March 13th with the goal of capturing growth in the industrial cannabis market.
In the release, TYHT said that it formulated a strategic development plan. This plan is said to be based on 20 years’ successful experience in the Apocynum industry. Apocynum is a form of hemp.
It is expected that the company will begin planting, CBD processing, CBD derivatives development and the comprehensive utilization of industrial hemp relatively soon.
In a statement, Mr. Yuying Zhang, Chairman and CEO at TYHT, had the following to offer:
We believe that the new business line of industrial cannabis will likely enrich and draw on the Company’s longtime experience in the comprehensive utilization of hemp plants and position the Company to become one of the world’s leading experts in the industrialization of hemp-based plants. We expect our plan to create greater value and return to our shareholders and investors.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Shineco, the news proved to be incredibly positive.
After all, the cannabis and hemp sector is an emerging one that is expected to grow astronomically around the world in the coming years. Getting in on the ground level is going to attract investor interest, and that’s exactly what the company is doing.
So, it’s not shocking to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:09), TYHT is trading at $1.08 per share after a gain of $0.42 per share or 63.61% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TYHT. In particular, we’re interested in following the story surrounding the company’s continued work to expand into the cannabis and hemp sector. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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