Shineco: Drops after plans to establish hemp-focused JV

Shineco

22/04/2019 16:56

** Shares of Chinese herbal medicines producer and
distributor  TYHT.O  fall 6% to $1.19, erasing premarket gains
    ** Shineco's unit enters into a deal with marketing co
Shenzhen Datong Industrial  000038.SZ  to form a joint venture,
Datong NewHemp LLP
    ** As per deal, both parties agree to invest up to RMB 1 bln
($149.02 mln) in Datong NewHemp  urn:newsml:reuters.com:*:nGNX9d8mNh
    ** JV to focus on integration and expansion of the
industrial hemp industry chain, development and sales of CBD
products, and exploring combinations of blockchain and
industrial hemp business scenarios
    ** Shineco jumped more than 80 pct last month after
announcing plans to enter cannabis market  urn:newsml:reuters.com:*:nL3N2162CR
    ** Including session losses, shares have more than doubled
this year
        
    (1 yuan = 15 cents)

 (Reporting by Medha Singh in Bengaluru)
 ((medha.singh@thomsonreuters.com))