(Yicai Global) May 8 -- Shares in Yatai Pharmaceutical, which makes active ingredients for pharma products, have surged this morning despite an overall market flop after striking a deal with Canada's Benchmark Botanics to enter the hemp business.
The Zhejiang-based firm's stock [SHE:002370] was up more than 4 percent at CNY18.75 (USD2.77) at 9.44 a.m., despite the benchmark Shenzhen Component Index starting the day 2.1 percent down.
Yatai and Toronto-listed Benchmark signed a preliminary deal with third party Rippington Investment to develop highly concentrated hemp products and promote their commercial applications in Canada via a new joint venture. All three parties agreed to have an investment agreement in place by the end of May.
Yatai and Rippington will put up capital for the venture while a subsidiary of Benchmark, which has a Canadian hemp production license, will choose a site to build a factory and run operations, including breeding and planting hemp and extracting its active ingredients.
Editor: James Boynton