Shineco Inc (NASDAQ: TYHT) is having a great start to the trading session in the market this morning, and for good reason. The company announced help news, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The hemp news;
- what we’re seeing from TYHT stock as a result; and
- what we’ll be watching for ahead.
TYHT Stock Gains On Hemp News
As mentioned above, Shineco is having a strong start to the trading session this morning after announcing hemp-related news. The news came by way of press release early in the pre-market hours.
In the press release, the company said that through its wholly owned subsidiary Tenjove NewHemp Biotech Co., Ltd., it has entered into a strategic cooperation agreement with the Xingshan People’s Government of Hegang City of Heilongjang Province.
According to the terms fo the agreement, TYHT will work with the other party to actively promote the development of a complete industrial chain for industrial hemp. This includes cultivation, harvesting, initial processing and fine extraction to form a local industry integration model and to achieve a new industrial scale economy.
As part of the collaboration, the parties will work to develop a 20,000 mu, high-quality industrial hemp project and expect to complete the cultivation of the first 500 mu in 2019. In a statement, Mr. Yuying Zhang, Chairman and CEO At TYHT, had the following to offer:
We are pleased to announce this agreement with the Xingshan People’s Government of Hegang City. We expect an annual production of 30 tons of CBD extract, and other raw medical materials from our industrial hemp project, along with 2,000 tons of industrial hemp fiber, 500 tons of industrial hemp seed oil and 4,000 tons of hemp leaves.
We estimate the value of the CBD and related raw medical extract alone to reach RMB2.1 billion, given the robust demand for CBD products and the resulting high market price. We look forward to leveraging our extensive experience in processing and marketing agricultural products and sharing our expertise with the appropriate authorities to ensure a profitable, environmentally friendly, and socially conscious development path in line with local government expectations.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work int he market is that the news leads to moves. In the case of Shineco, the news proved to be overwhelmingly positive.
After all, the hemp and cannabis market is an emerging one with plenty of opportunity ahead. This is leading to strong investor interest in the space, and with the company diving in full steam ahead, it makes sense that we’re seeing strong gains.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:29), TYHT is trading at $1.38 per share after a gain of $0.29 per share or 26.61% 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 company’s efforts in the hemp/CBD space. We’re also watching the Trade War as positive news on the topic has likely helpd to bulster the gains today. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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