Yatai Pharma Bucks Stock Slump After Penning Medical Hemp Deal With Canadian Firm
Tang Shihua
/SOURCE : yicai

(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

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Keywords: Joint Venture , Medical Hemp , Canada , Benchmark Botanics , Yatai Pharmaceutical