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(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 1372)
FULLY EXEMPT CONNECTED TRANSACTION
IN RELATION TO ACQUISITION OF TARGET COMPANY
This is a voluntary announcement made by Bisu Technology Group International Limited (the "Company" together with its subsidiaries, the "Group").
On 15 April 2019 (after trading hours), the Purchaser, a wholly owned subsidiary of the Company, entered into the Agreement with the Vendor for the purchase of the Sale Shares. Upon Completion, the Target Company will become an indirect wholly-owned subsidiary of the Company and the financial performance and position of the Target Company will be consolidated into the Group's consolidated financial statements.
As at date of this announcement, the Target Company indirectly holds 70% of the equity interest in Yunnan Tairui, which was granted a permit by the relevant government authority of Yunnan Province, the PRC, for industrial hemp processing for up to the production capacity of 50 tonnes of cannabidiol (CBD).
With the legalization of industrial hemp in certain regions of the PRC and overseas, the application of CBD in medical treatment and consumer goods such as skin care products and healthy products is expected to increase. The Board believes that by investing in industrial hemp processing and CBD extraction field, the Company would be able to diversify its businesses as well as tap into the rapid growing industrial hemp market, for the benefit of the Group and the Shareholders as a whole.
The Target Group is now planning on the implementation of the industrial hemp processing as permitted under the Permit, the Company will update the investors for any significant development.