Renmin Tianli Group, Inc. (NASDAQ: ABAC) is engaged in the breeding, raising, and selling of hogs in China. Shares surged 33.31% through early trading on Wednesday, January 1, 2019. Over the past three months, Renmin Tianli has seen an average daily volume of 12,080 shares. However, through Wednesday morning, already 1.23 million shares have traded hands, equating to $1.43 million in dollar volume.
Shares jumped Wednesday morning after Renmin Tianli announced it has entered into a purchase agreement with Hubei Science and Technology Industrial Park. Under terms of the deal, Renmin Tianli will acquire a residential property and two industrial buildings. The residential property is 19,000 square meters and the two industrial buildings have an aggregate floor area of 50,000 square meters. In exchange for the properties, Hubei Science and Technology Industrial Park will receive a cash payment of US$59.7 million and 3 million shares of Renmin Tianli’s common stock at a value of US$0.004 per share. Renmin Tianli plans to lease the properties, in addition to its hog farming operation, as another source of revenue. Here is the full press release detailing the purchase agreement and Renmin Tianli’s new properties:
Renmin Tianli Group, Inc. Press Release:
WUHAN, China, Jan. 2, 2019 /PRNewswire/ — Renmin Tianli Group, Inc. (ABAC) (“Renmin Tianli” or the “Company”), a producer of breeder hogs, market hogs and black hogs, as well as specialty processed black hog pork products sold through retail outlets and the internet, with headquarters in Wuhan City, Hubei Province, China, today announced that it has entered into a purchase agreement with Hubei Science and Technology Industrial Park (the “Seller”) to acquire a portfolio of industrial and residential properties (the “Properties”) for a total consideration of RMB432 million, including 1) cash consideration of RMB411 million (approximately $59.7 million); and 2) 3,000,000 shares of Renmin Tianli common stock, par value of $0.004 per share, to be issued to certain shareholders of the Seller. The Company’s Board of Directors has approved the transaction.
Located at No. 1 Qilin Road, Xiangcheng District, Xiangyang City, Hubei Province, the Properties include two industrial buildings (building #4 and #7) with aggregate floor area of approximately 50,000 square meters and a residential building with usage area of approximately 19,000 square meters.
Upon completion of the transaction, the Company expects rental streams from the leasing the Properties to complement its existing hog farming business.
About Renmin Tianli Group, Inc.
Renmin Tianli Group, Inc. (the “Company”), is in the business of breeding, raising and selling breeder and market hogs in China. The Company also sells specialty processed black hog pork products through supermarkets and other retail outlets, as well as the internet.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulations, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by this cautionary statement and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
Article By: Andrew Rego