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Новости/Аналитика

How Canadians behave in the Chinese hemp market

17.07.2020

Unlike contracts in Latin American and individual European countries, hemp companies in China enter into exclusively mutually beneficial cooperation agreements with their Canadian colleagues, which initially predetermine the mutual promotion of products in the markets of Canada and China, as well as an agreed policy aimed at promoting their products to the markets of third countries ". In turn, Canadian cannabis growers do not allow themselves to dictate conditions in the Celestial Empire, but agree with those that are of interest to the Chinese side. Credit must be given to Chinese government officials who are shaping the conditions for Chinese hemp firms to set up joint ventures to bring new technologies into the country that are emerging in the rapidly changing global hemp market.

On the pages of the specialized electronic edition of Ukrainian cannabis growers, it has already been described how " Canadians enter the Chinese hemp market ." Given the activity of Canadian medical cannabis producers in entering the Chinese market and certain trends that can be traced during the conclusion of such transactions, it makes sense to consider the working conditions in the territory of the Celestial Empire for another Canadian company that has entered into an agreement on cooperation and joint activities with one of the leaders of Chinese hemp growing ... 

Canadian company "Geyser Brands Inc." signed a strategic partnership and investment agreement with one of the largest hemp companies in China “Hanma Investment Group” (HMI). HMI has become a strategic shareholder of Geyser's subsidiary, Geyser Management Inc. (GMI) by acquiring 35% of the company's outstanding shares. The partnership is based on mutually beneficial cooperation and mutual promotion of the hemp business in China and Canada, which primarily includes expanding the distribution channels for raw materials and finished products produced by the companies. 

Under the terms of the agreement, HMI designates Geyser as the exclusive agent for sourcing, purchasing or exporting, directly or indirectly, to or from Canada, all hemp varieties and any extracts, including cannabinoids. As a further consideration of the possibility of acquiring an additional block of shares, HMI provided Geyser with a credit line in the amount of $ 2 million. In the future, the parties plan to agree on the terms of deepening partnership and mutually beneficial cooperation necessary for further business development. The talks will focus on production equipment, technologies, packaging materials and, where legal, the use of cannabidiol required for the manufacture of final products, including cannabinoid isolates, extracts of selected cannabinoids, including water-soluble cannabidiol. HMI will also have the right to appoint up to two members of the GMI board.

Commentary of experts of the Association "Ukrainian technical hemp"

"Hanma Investment Group Co., Ltd." (HMI Group) is committed to helping drive the industrial revolution in the use of hemp biomass. The goal is to replace fossil raw materials with vegetable ones, for which it is planned to become the world leader in the field of integrated hemp use. "HMI Group" is one of the leading companies in the Asian hemp industry. HMI is China's largest integrated hemp conglomerate. The company is one of the largest producers of cannabidiol. At the moment, “HMI Group” is the only investment company in China that deals with the entire production chain using industrial hemp, including investing significant financial resources in the development of biopharmaceuticals based on the therapeutic properties of the hemp plant. Emphasizes its efforts on investing along the entire growing chain, processing and sales of technical hemp - from breeding, planting, extraction, research and development to production and sales worldwide, covering the fields of biopharmaceutical, food, cosmetic products, medical equipment, textiles, biocomposite materials production etc. 

"Geyser Brands Inc." develops consumer brands in the health and wellness sector that use the therapeutic properties of cannabis as well as drug-free cannabinoids as the main ingredients used in the company's products. He is the owner of a licensed manufacturing facility with a total of 0.139 hectares (15,000 square feet) of legal psychoactive cannabis production facilities in two facilities located in Vancouver and British Columbia. Both factories are certified according to Good Manufacturing Practice (GMP) quality standards.

Unlike contracts in Latin American and individual European countries, hemp companies in China enter into exclusively mutually beneficial cooperation agreements with their Canadian colleagues, which initially predetermine the mutual promotion of products in the markets of Canada and China, as well as an agreed policy aimed at promoting their products to the markets of third countries ". In turn, Canadian cannabis growers do not allow themselves to dictate conditions in the Celestial Empire, but agree with those that are of interest to the Chinese side. Credit must be given to Chinese government officials who are shaping the conditions for Chinese hemp firms to set up joint ventures to bring new technologies into the country that are emerging in the rapidly changing global hemp market.

Обучение в рамках "Конопляного Университета"
15.09.2020

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