I still don't understand why investors are so keen on this China deal.
Like America, China has all sorts of people. This whole concept that, "the Chinese are coming", is so arbitrary. It's like the investors think that China is one company, and not a billion different people all with different investment potentials.
I lived in China for half a decade, and watched foreign companies tank or succeed based how well the product integrates into Chinese society and the marketing capital put into them.
In both cases, I see no reason why a company sporting HEMP infused beverages would be seen as anything more than a drug company there. Marijuana isn't treated lightly in the middle kingdom, as they put it on the same category as opium or heroine. That being said, obtaining a license to import (or manufacture there) would be a nightmare, as most Chinese wouldn't see the difference between Hemp & Weed.
Secondly, importing water to bottle there would be SO expensive... especially since they already have lots of bottled water companies selling their product cheap over there. Reasonably good water too. Yes, they have luxury bottled water too like Evian, but the only reason it sells is because it's super famous.
Thirdly, I've never heard of LSW Holdings, and I'm pretty sure nobody else has too. Mrs. Li probably isn't even real, and even if she is who cares? Look at it like this... would you invest in a company that said, "The Americans are coming. Mr. Johnson will be a big investor"... ? We'd all be like, who the #^%$ is Mr. Johnson and why does he have so much sway?
Finally, citing market potential is a pretty lame way to generate investment. "China has so many people, therefore our sales will be huge" is a childish notion. It is not an easy market to tap into. Period.
