China Government Approves Cannabis Pharmaceutical Joint Venture
Benchmark Botanics, Inc. (BBT.C) a federally-licensed producer and distributor of medical-grade cannabis reported that Zhejiang Yatai has received approval and acceptance of filing from the Administrative Office of Keqiao District of Shaoxing City in China for Overseas Investment Projects to establish a joint venture company to build an industrial cannabis facility in Canada with Benchmark as planned under the Investment Cooperation agreement.
Zhejiang Yatai has also received an Enterprise Overseas Investment Certificate issued by the Zhejiang Provincial Department of Commerce, allowing Zhejiang Yatai to invest and transfer funds from China in order to make their CAD$7 million investment into the new joint venture company with Benchmark.
"We are pleased to see Zhejiang Yatai diligently advanced the Investment Cooperation Agreement and welcome the approvals from the local government. We believe that this event advances the viability of the partnership and for the industrial cannabis industry" said William Ying, CEO of Benchmark Botanics. "We look forward to a prosperous and mutually beneficial partnership with Zhejiang Yatai, one of the top 500 Chinese corporations."
It is anticipated that the new joint venture company will have a share capital of CAD $14 million, of which Zhejiang Yatai will invest CAD $7 million in cash, accounting for 50% of the its share capital; BBT will cause its wholly-owned subsidiary Potanicals Green Growers Inc. to use its existing Health Canada issued license to apply for a license for property to be acquired by the new company for cannabis cultivation, processing, and sale thereon and in exchange BBT will receive 25% of the new company's share capital (with a cash equivalent of CAD$3.5 million) ; and Rippington Investment will invest CAD $3.5 million in cash, accounting for the remaining 25% of the new company's share capital.
The new joint venture company will pursue business opportunities in the development of industrial cannabis products with the focus on the medical sector and quickly implement a strategic plan to seek out new profitable pharmaceutical health and wellness supplements for the company's future growth and competitiveness.
Zhejiang Yatai will bring their significant resources and experience to the new partnership with Benchmark as follows:
Benchmark and Zhejiang Yatai will jointly focus on developing a European and American industrial cannabis CBD market. Both will make full use of their respective significant corporate resources, established sales channels, distribution networks, existing infrastructures and the expertise of the company's drug research and development technologies.
Benchmark and Zhejiang Yatai will leverage their existing resources and their respective experience in the field of drug development, promote the cultivation of high CBD content of industrial hemp cultivation, processing, marketing, research and development of medical cannabis and high purity CBD-based cannabinoids extraction, separation, purification and development.
Benchmark and Zhejiang Yatai will be responsible for the foreign exchanges and all other related import and export logistics in accordance with domestic and international laws.
About Zhejiang Yatai Pharmaceutical Co., Ltd.
Zhejiang Yatai Pharmaceutical Co., Ltd. one of the top 500 China Enterprises and a publicly listed company on the Shenzhen Stock Exchange (stock code: 002370) is a China-based company engaged in the manufacture and distribution of drugs. The Company's main business consists of the research, development, production and sales of chemical agents, chemical raw materials and diagnostic reagents, as well as the provision of pharmaceutical research and development outsourcing (CRO) services. The Company's chemical agents are classified as antibiotics and non-antibiotic drugs. Along with its subsidiaries, the Company provides pre clinical research services, clinical research services and other advisory services. The Company distributes its products primarily in domestic markets and overseas markets.
Revenues $188.29 M USD 2018
Net Income: $30.1M USD 2018
Market Cap $ 8.525 B USD
50 offices located in 24 provinces throughout China
GMP standards / modern pharmaceutical production techniques
2002 ISO 9001 quality certification – ISO 14001 environmental protection