According to the announcement of MeiChen ecology (Meighen ecology, a Chinese technology and environmental protection company in Shandong province, China, founded in 2004.) On April second, 2020, the company terminated the cooperation on Hemp Cultivation with Careline Australia Pty Ltd（One of the leading companies focusing on producing the health products and skincare products throughout Australia ，founded in 1989）.
The spoken man of MeiChen ecology explained, the agreement involved in the early preparation of cooperation failed to bring profit growth to the company. At the same time, due to the global spread of COVID-19 and bush fires in Australia, the two sides agreed and confirmed to terminate the proposed industrial cannabis project.
Meichen ecology performed well in the last year when many companies were involved in industrial hemp. Last year, the company announced that it would set up 20,000-hectare industrial cannabis cultivation in Australia with the cooperation of Australia’s Careline Australia Pty Ltd.
The news about cooperation made Mei Chen ecology stock soared; investors rushed to buy. The price soaring drew the attention of Shenzhen Stock Exchange Administration. Meichen ecology insisted that it was not opportunistic about the hits of industrial hemp, but expanding to new businesses.
However, the hit of industrial hemp has dwindled now, Mei chen terminated the cooperation, isn’t it opportunistic?
The termination of the agreement means that Meichen ecology’s Australian “hemp” act stranded.
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