Farmmi Acquires Xiangbo For ~RMB70M To Expand Forest Related Business

Chinese agriculture products supplier Farmmi Inc FAMI has agreed to acquire all the shares of Jiangxi Xiangbo Agriculture and Forestry Development Co., Ltd (Xiangbo) for about RMB70 million.
Farmmi expects the deal to expand its forest-related business. Xiangbo primarily uses its acreage to cultivate and produce Moso Bamboo, Camellia Oleifera, and Chinese Fir trees.
Xiangbo'sXiangbo's subsidiary, Yudu County Yada Forestry Co., Ltd., owns 1,4438.5 mu of economic forest in Yudu County, Ganzhou City, Jiangxi Province.
Farmmi held $16 million in cash and equivalents as of March 31, 2021.
Farmmi issued a CEO update letter detailing its expectation for increased growth and expanded opportunities.
Price Action: FAMI shares closed higher by 41.25% at $0.34 on Wednesday.