DONGGUAN, China, July 25, 2019 (Newswire.com) - PRESS RELEASE - On Thursday, July 18, Asian industrial hemp company CannAcubed Pte Ltd signed a strategic and exclusive joint venture agreement with one of Macao's and China’s fastest-growing tobacco and hemp product innovation companies, Macao Red Cloud Tobacco Group Ltd. The agreement was signed between the parties at Red Cloud’s corporate China office in the first-tier city of Dongguan in central Guangdong Province, China.
Macao Red Cloud Tobacco Group Co. Ltd. is a Macao local enterprise specially approved by the Special Administrative Region Government in 2010. With product development and technical research offices in Guangzhou and Kunming, China, manufacturing facilities in Indonesia and sales distribution channels in the UAE, Africa, Australia and the U.S., Red Cloud is positioned to leverage the rapidly growing hemp and CBD markets. After cooperating with CannAcubed, the group is preparing to launch the first batch of industrial hemp and CBD products in China. This includes a specialized hemp beer brand, Hybier, which will become the first and only hemp beer sold in mainland China.
Next month, the company is expected to release China's first natural soft-capsule food containing CBD ingredients in mainland China. In addition, with this strategic cooperation with CannAcubed, the new joint venture will continue to develop CBD application technology around Red Cloud's cigarette and tobacco product line. It is believed that these unique technologies will win broad market space and opportunity once applied.
CannAcubed is one of the first companies in Asia to have an international footprint and major hemp project in the region being China. Headquartered in Singapore, the group has set up 100-percent foreign-owned licensed entities in Hong Kong and Guangzhou. Recently, CannAcubed secured two large factory sites in Chuxiong, Yunnan, totaling 13,000 meters squared, where it has already begun design work for CBD production, processing and research.
The company is currently growing on just under 400 acres this year in Lufeng and Wuding and will export from Kunming where it is setting up its China head office. CannAcubed intends to scale up significantly in 2020 and beyond, with a heavy focus on product development for domestic and global distribution.
“I’m absolutely thrilled to be partnering with an incredibly innovative and forward-thinking company like Red Cloud,” said Glenn Davies, Group CEO of CannAcubed. “We have the total value chain now locked up and it’s extremely exciting. We have the land and production capacity to scale fast and big, and this was the final piece of the puzzle for us.”
“Partnering with CannAcubed made perfect sense for us,” Red Cloud’s Group CEO Jimmy Wang stated. “We’ve focused heavily on product research and development and we now have the upstream and downstream taken care of. CannAcubed shared our vision completely when it came to innovation and where the future lies in hemp and CBD.”
The partnership will focus entirely on hemp, CBD and hemp-derivative products and research. Product development for the joint venture has already begun with hemp/CBD beer, CBD cigarettes and CBD facial masks being first on the list.
The new joint venture will set up its global distribution out of Macao and the domestic company likely will be in CannAcubed’s head office in Kunming.