Huifeng Bio-Pharmaceutical Technology, Inc. (OTC Bulletin Board: ("the Company"), specializing in developing and producing botanical extracts and other raw materials for pharmaceuticals and food additives, today announced it entered into a $3.9 million USD Financing and Construction agreement with Xi'an Jucheng Investment & Consulting Co., Ltd. ("Jucheng"), a company organized and operating under the laws of the People's Republic of China ("PRC").
Under the agreement, Jucheng shall provide $3.9 million in financing for the construction of a Diosmin plant with an annual production capacity of 500 tons. The plant will be designed to meet the COS Standard for Diosmin production. In consideration, the Company has agreed to issue to Jucheng 6,500,000 shares of the Company's restricted common stock, of which 1,500,000 shares shall remain restricted until Huifeng Bio-Technic approves and accepts the plant upon completion. The Company expects the construction of the plant to be completed within 8 months.
The addition of this plant will increase the Company's Diosmin production capacity to 600 tons. Diosmin production lines that meet the COS Standard will significantly improve the quality of the Company's Diosmin products, enable the Company to attract larger customers and solidify the Company's leading position in the Diosmin market with the ability to capture more than 50% share of China's exports.
"The financing will provide us capital to construct a new COS Standard Diosmin plant with 500 tons of production capacity, whichwill enable us to become the largest Diosmin producer in Asia. Demand for our Diosmin products continues to grow rapidly in the global market and this expansion will give us a significant competitive advantage," said Mr. Jing'an Wang, CEO.
"The completion of this new plant will mark another key milestone in the rapid growth of Huifeng. Our company has received many orders from European customers for Diosmin that complies with the COS Standard. We expect to see continued robust demand for our Diosmin products as a result of our competitive pricing and quality compared to our competitors and we believe this plant has the capacity to generate an additional $20 million in revenue each year for the Company"
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