(Yicai Global) March 21 — Shares of Layn Natural Ingredients jumped after the Chinese producer of plant-based food supplements said its new cannabidiol facility in the United States has received its first order worth up to USD5.7 million.
Layn’s stock price [SHE: 002166] surged by the daily limit of 10 percent to CNY9 (USD1.40). Its market cap reached CNY5.1 billion (USD802.4 million). But its share price is still almost 7 percent down this year.
An American provider of CBD products has ordered about 227 tons of hemp-derived products from Layn’s unit HempRise, the Guilin-based firm said in a statement today. The order will be delivered from August to December.
The seller could gain more than USD2.55 million but no more than USD5.7 million through the deal, according to its preliminary estimate.
The US project marks a first for the producer of stevia and sports supplements that is entering the red-hot field of CBD, one of the active ingredients in cannabis that is used to treat pain and anxiety. The firm invested about USD80 million to build the plant in Indiana which began trial production last October. The facility is recovering from the impacts of the Covid-19 pandemic and should start mass production by June.
The company is becoming increasingly profitable. In 2021, Layn expects to have boosted its net profit by 30 percent to 50 percent to as much as CNY129 million (USD20.3 million), according to the firm’s business performance prediction. Revenue may have surged by more than 30 percent.
Editor: Emmi Laine, Xiao Yi
Recent Comments