China Xiangtai Food Co., Ltd. Enters into MOU to Acquire Controlling Interest in Chongqing Ji Mao Cang Feed Co., Ltd.
Expected Increased Revenue of $70,000,000 USD to Expand China's Southwest Market
CHONGQING, China, March 26, 2020 /PRNewswire/ -- China Xiangtai Food Co. Ltd. (NASDAQ: PLIN) (the "Company" or the "PLIN"), an emerging growth company primarily engaged in pork processing in China, today announced that the Company, through its subsidiary Chongqing Jinghuangtai Enterprise Management Consulting Co., Ltd., entered into a non-binding Memorandum of Understanding (the "MOU") to acquire 51% controlling interest in Chongqing Ji Mao Cang Feed Co., Ltd.("JMC"), a private enterprise specializing in feed raw material sales and providing feed formula solutions, to expand the southwest market in China.
Pursuant to the MOU signed on March 23, 2020, PLIN proposed to acquire 51% controlling interest of JMC, one of the leading feed sales companies in southwest China. JMC has more than 200 customers in farm industry and nearly 100 customers in feed production industry. In 2019, JMC sold more than 200,000 tons of soybean meal, exceeding RMB 500 million (approximately $70,000 USD) in sales. Given the Company's revenue of fiscal year 2019 was $102,545,152USD, PLIN is expected to increase 70% of revenue through this acquisition. https://finance.yahoo.com/quote/PLIN?p=PLIN&.tsrc=fin-srch
PLIN Potential Catalyst - $6.70 Analyst Price Target
Analyst Rob Goldman from Goldman Small Cap Research, released a complete research report on the company with a $6.70 target.