Wuhan General Group Corporate Update on Tsime Pharmaceuticals Acquisition
Wuhan General Group, Inc. (WUHN) has successfully completed the due diligence phase for acquiring Tsime Pharmaceuticals. This acquisition allows for the cultivation of medicinal-grade cannabis on a 23-hectare farm in Lesotho, with an estimated annual revenue of USD 9.8 million from its first crop in Q2-Q3 2021. The project requires USD 4.7 million in its first year, with discussions for funding underway. Key appointments include Willem Jonker as COO and Bataung Likate as onsite Director. Project milestones include developing greenhouses and establishing security protocols.
- Acquisition of Tsime Pharmaceuticals enhances WUHN's position in the medicinal cannabis sector.
- Projected annual revenue from the first crop is USD 9.8 million.
- Key leadership appointments, including Willem Jonker as COO, bring expertise.
- First harvest expected within 9 months of breaking ground.
- Initial capital requirement for the project is USD 4.7 million, which implies potential financial strain.
CAPE TOWN, SA / ACCESSWIRE / September 22, 2020 / WUHAN GENERAL GROUP, INC. (WUHN) ("Wuhan" or the "Company"), a bioceutical company focused on alternative plant-based cannabinoids and psilocybin medical research is delighted to share the following corporate updates:
Tsime Pharmaceuticals
The last step in completing the due diligence regarding the acquisition of Tsime Pharmaceuticals Inc. ("Tsime") was accomplished last week with the visit to the Tsime property in Lesotho. Based on our positive results, the Company is pleased to announce it is going forward with the acquisition of Tsime Pharmaceuticals and the plans to cultivate up to 3 hectares of medicinal-grade cannabis on the farm with a land area covering 23 hectares (57 acres). With its license, the Company will grow, extract and process medicinal cannabis on-site, a key element in driving research and the manufacturing of cannabidiol (CBD) by-products. The project's first crop is scheduled for Q2-Q3 2021, with projected annual revenue of USD 9.8 Million.
We are also very pleased to announce that Willem Jonker, head of the cannabis operation Medigrow will be joining the Wuhan team as Chief Operating Officer in the coming days. A future press release will be shared on the subject once effective.
As well, Bataung Likate has been appointed as the onsite Director of Tsime Pharmaceuticals.
Batung Likate, Director of Tsime, said: "We at Tsime Pharmaceuticals, together with the Chief and the local community of which we form part, are excited that this project is coming to fruition. This area otherwise has few formal employment opportunities, so we welcome M2Bio Sciences with open arms."
Information regarding the closing of the transaction will be announced in due course.
Capital requirement?
The total project requirement for the first year is USD 4.7 million consisting of USD 2.82 million in Capital Expenditures and Operating Costs of USD 1.88 million.
The Company is actively discussing with private and public financial organizations on the potential funding opportunities and financial instruments to be deployed to secure the necessary capital.
Some key milestones are the construction of the greenhouses (18 tunnels equivalent to 5,400 square metres), establishing Security Protocols and starting the first cultivation.
The company expects to have the first harvest 9 months from the day it breaks ground.
How profitable is a cannabis cultivation operation?
Based on revenue projections for the first 0.5-hectare facility, the net income before tax is USD 9.82 million. After deducting yearly operating expenses, a projected net profit of USD 6.37 million could be realized. The applicable tax rate in Lesotho is
Projected net income after tax is
The Company is currently in discussions with interested parties for the purchase of future cannabis production.
"I enjoyed our trip to Lesotho on both a personal and business level. Willem shared so much remarkable and indispensable knowledge and wisdom. We have such an unfair IP advantage in knowing what has worked and what hasn't for those that ventured ahead of us. We thank the early players for laying the foundation. It is our turn to sow the seeds and reap the bountiful rewards for our shareholders. "said Wuhan CEO, Jeff Robinson.
About Wuhan General Group, Inc./ M2Bio Sciences, Inc
Wuhan General Group, Inc. through its wholly-owned subsidiary MJ MedTech is a nutraceutical biotechnology company that researches, develops and commercializes a range of CBD-based products under Dr. AnnaRx™ and Medspresso™ brands. In addition, its wholly-owned division, M2Bio is researching and developing indications for psilocybin new therapies that will help patients who suffer from addiction, mental illness, Alzheimer's and Parkinson's. Our mission is to advance botanical-based medicine to the forefront by deploying best-practice science and medicine, clinical research and emerging technologies. Wuhan is listed and traded on the Over the Counter Bulletin Board of NASDAQ under the trading symbol "WUHN".
For further information:
Publicly traded company (OTC Pink:WUHN)
Website: www.m2bio.co
E-mail:info@m2bio.co
Follow us on Twitter: https://twitter.com/m2bio
Follow us on Facebook: http://www.facebook.com/m2bio
Forward-Looking Statements:
Safe Harbour Statement - In addition to historical information, this press release may contain statements that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this press release include the intent, belief, or expectations of the Company and members of its management team with respect to the Company's future business operations and the assumptions upon which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties and that actual results may differ materially from those contemplated by such forward-looking statements. Factors that could cause these differences to include, but are not limited to, failure to complete anticipated sales under negotiations, lack of revenue growth, client discontinuances, failure to realize improvements in performance, efficiency and profitability, and adverse developments with respect to litigation or increased litigation costs, the operation or performance of the Company's business units or the market price of its common stock. Additional factors that could cause actual results to differ materially from those contemplated within this press release can also be found on the Company's website. The Company disclaims any responsibility to update any forward-looking statements.
SOURCE: Wuhan General Group, Inc.
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FAQ
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