During the week of March 18th, shares of company Shineco Inc. (TYHT) soared following the company’s plans to expand into the cannabis market. This penny stock is a Delaware holding company which utilizes its subsidiaries’ and variable interest entities’ vertically- and horizontally-integrated production, distribution
On March 19th, the company announced the establishment of a new wholly owned subsidiary Beijing Tenjove Newhemp Biotechnology Co. Ltd. (TNB) on Mar. 13, to capture growth in the industrial cannabis market which includes industrial hemp and cannabidiol (CBD) processing.
Mr. Yuying Zhang, Chairman and CEO of THYT, commented, “We believe that the new business line of industrial cannabis will likely enrich and draw on the Company’s longtime experience in the comprehensive utilization of hemp plants and position the Company to become one of the world’s leading experts in the industrialization of hemp-based plants. We expect our plan to create greater value and return to our shareholders and investors.”
Penny Stock Gets High On Cannabis News
As a result of this expansion news, the penny stock gained more than 142% on the day, touching highs of $1.60 before closing at $1.22. THYT hasn’t traded at these levels since July of 2018. In fact, this penny stock has been on a decline since its May 18th high at $2.47 and touched its all-time low of $.43 just in February. Prior to this news release, short sellers were already exiting with share sold short dropping 8.6% in the last reporting period.
On March 20th, the company took things a step further and announced entering into three separate agreements with the Hemp Research Institute of the Chinese Academy of Agricultural Sciences. The agreements include an industrial cannabis technology transfer agreement, an industrial cannabis apocynum planting technical service agreement and a hemp industry technical service and product R&D cooperation framework agreement.
Although the markets didn’t react as favorably to this news,