AgraFlora Organics International Inc.
Nathan Halsey set up YuShop in Hong Kong back in 2010 to serve as a “gateway to Chinese shoppers” for companies across a number of industries. AgraFlora’s 50% owned JV, Eurasia Infused Cosmetics Inc., has tied up a deal with YuShop and it expects to enjoy rapid growth in the world’s most populous country.
YuShop will use hyper-targeting of 1.08-billion WeChat users to sell the CBD-infused products across the country. AgraFlora’s internal forecasts expect it to reach more than 1.5 million per month by Q2 2020.
“We are very optimistic for a full-scale Asian commercialization campaign of Eurasia Infused’s comprehensive CBD product suite,” said AgraFlora chief executive Brandon Boddy.
Cannabis and its derivatives are illegal in China, so the CBD products will be derived from hemp. AgraFlora is developing organic cosmetics, shampoos, and sunscreens specifically tailored for the “Asia Pacific theatre”.
It will also launch pop up shops under its Whole Hemp Health brand across China in Q2 2020 to boost its downstream footprint and brand presence, while targeting distribution initiatives at 1,500 luxury health spas.
AgraFlora is building out a facility in Delta and it should be fully operational next year. It will have annualized capacity of 250,000 kg, making it one of the top five largest producers in Canada.
Yet its market cap is below $220 million and it has long argued that it is undervalued. The firm’s share price increased from $0.28 on Jan. 2, 2019, to $0.79 by Mar. 21, but it has steadily decreased since then and opened at $0.26 today.
Earlier this year, it set up operations in Greece and increased capacity at its brewery by 30% to 130,000 hl in a bid to crack the cannabis beverages market.
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