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Chinese-Owned Firm Takes Over Major Tasmanian Medicinal Cannabis Farm - Hobart, TAS
Smart summary
Chinese-owned Yongji Health has taken almost complete control of Tasmanian Botanics, one of Australia's largest medicinal cannabis producers, following a deal valued at about $31 million.
One of Australia's largest medicinal cannabis producers has come under almost complete Chinese ownership after Yongji Health acquired the remaining shares of the company that owns Tasmanian Botanics.
Tasmanian Botanics operates a large medicinal cannabis cultivation and processing facility at Pontville, north of Hobart. The business grows, manufactures and packages medicinal cannabis products and employs more than 150 people at its Tasmanian site.
Company documents show that Yongji Health, a subsidiary of Guizhou-based Guizhou Yongji Printing, has taken full control of Pijen, the company that owns more than 95 per cent of Tasmanian Botanics. Yongji was previously a shareholder in Pijen before purchasing the remaining shares held by Australian investors.
The transaction was reported by industry publication Cannabiz to be worth approximately $31 million. The acquisition means Yongji now has almost complete ownership of one of Australia's largest cannabis cultivation operations.
Tasmanian Botanics is based at Pontville and operates both greenhouse and outdoor cultivation facilities. The outdoor crop covers approximately 2.5 hectares, while the site also contains facilities used for processing, manufacturing and packaging medicinal cannabis products.
The company's chief executive, Craig Knight, said the change in ownership was not expected to result in immediate changes to the company's operations or staffing.
Mr Knight said the business would continue operating as it had previously and indicated there were no current plans for significant changes affecting employees or customers. He also described the new owner's investment as evidence of confidence in the Australian medicinal cannabis market.
The takeover occurs while Australia's medicinal cannabis sector faces increasing competition from international producers. Overseas manufacturers, including businesses operating in Thailand, have expanded their presence in the market, creating greater competition for Australian growers and manufacturers.
Mr Knight said being part of a larger international business could provide Tasmanian Botanics with additional opportunities and connections within the medicinal cannabis industry. Yongji already has interests in other Australian medicinal cannabis assets, creating potential links between the businesses.
Yongji Health is a subsidiary of Guizhou Yongji Printing, a cigarette-packaging company listed on the Shanghai Stock Exchange. The company's involvement in Tasmania therefore represents an example of international investment entering Australia's growing medicinal cannabis industry.
The acquisition has also attracted attention because of the strategic importance of foreign investment in Australian businesses. The Australian government's Foreign Investment Review Board has been contacted for comment about the transaction.
The board's role includes reviewing certain foreign investment proposals under Australia's foreign investment framework. The it had contacted the board following the ownership change, with no response included in the report at the time of publication.
For workers at the Pontville facility, the immediate message from company management is that operations will continue as normal. More than 150 employees are connected with the site, making the business an important employer in the local area.
The takeover also comes as Australia's medicinal cannabis industry continues to develop. Demand for medicinal cannabis products has grown substantially over recent years, while producers face regulatory requirements, international competition and the challenge of establishing commercially sustainable operations.
The future direction of Tasmanian Botanics under its new ownership will therefore be closely watched by employees, customers and the broader Australian medicinal cannabis industry.
CannabisMedicinalCompanyTasmanianYongji
One of Australia's largest medicinal cannabis producers has come under almost complete Chinese ownership after Yongji Health acquired the remaining shares of the company that owns Tasmanian Botanics.
Tasmanian Botanics operates a large medicinal cannabis cultivation and processing facility at Pontville, north of Hobart. The business grows, manufactures and packages medicinal cannabis products and employs more than 150 people at its Tasmanian site.
Company documents show that Yongji Health, a subsidiary of Guizhou-based Guizhou Yongji Printing, has taken full control of Pijen, the company that owns more than 95 per cent of Tasmanian Botanics. Yongji was previously a shareholder in Pijen before purchasing the remaining shares held by Australian investors.
The transaction was reported by industry publication Cannabiz to be worth approximately $31 million. The acquisition means Yongji now has almost complete ownership of one of Australia's largest cannabis cultivation operations.
Tasmanian Botanics is based at Pontville and operates both greenhouse and outdoor cultivation facilities. The outdoor crop covers approximately 2.5 hectares, while the site also contains facilities used for processing, manufacturing and packaging medicinal cannabis products.
The company's chief executive, Craig Knight, said the change in ownership was not expected to result in immediate changes to the company's operations or staffing.
Mr Knight said the business would continue operating as it had previously and indicated there were no current plans for significant changes affecting employees or customers. He also described the new owner's investment as evidence of confidence in the Australian medicinal cannabis market.
The takeover occurs while Australia's medicinal cannabis sector faces increasing competition from international producers. Overseas manufacturers, including businesses operating in Thailand, have expanded their presence in the market, creating greater competition for Australian growers and manufacturers.
Mr Knight said being part of a larger international business could provide Tasmanian Botanics with additional opportunities and connections within the medicinal cannabis industry. Yongji already has interests in other Australian medicinal cannabis assets, creating potential links between the businesses.
Yongji Health is a subsidiary of Guizhou Yongji Printing, a cigarette-packaging company listed on the Shanghai Stock Exchange. The company's involvement in Tasmania therefore represents an example of international investment entering Australia's growing medicinal cannabis industry.
The acquisition has also attracted attention because of the strategic importance of foreign investment in Australian businesses. The Australian government's Foreign Investment Review Board has been contacted for comment about the transaction.
The board's role includes reviewing certain foreign investment proposals under Australia's foreign investment framework. The it had contacted the board following the ownership change, with no response included in the report at the time of publication.
For workers at the Pontville facility, the immediate message from company management is that operations will continue as normal. More than 150 employees are connected with the site, making the business an important employer in the local area.
The takeover also comes as Australia's medicinal cannabis industry continues to develop. Demand for medicinal cannabis products has grown substantially over recent years, while producers face regulatory requirements, international competition and the challenge of establishing commercially sustainable operations.
The future direction of Tasmanian Botanics under its new ownership will therefore be closely watched by employees, customers and the broader Australian medicinal cannabis industry.
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