Huifeng Bio-Pharmaceutical Technology, Inc. (HFGB.OB) Secures $3.9M to Build Diosmin Plant, Massively Expanding Output to Meet Global Demand

QualityStocks would like to highlight Huifeng Bio-Pharmaceutical Technology (OTCBB: HFGB). Located in Xi'an, People's Republic of China, the company develops and produces plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical, and food production. It is the leading Chinese producer of rutin and related plant-derived chemicals in a class called flavonoids, with medicinal and other beneficial properties.

In the company’s news yesterday,

Huifeng Bio-Pharmaceutical reported entry into a $3.9M financing and construction agreement with Xi’an Jucheng Investment & Consulting Co., Ltd. (Jucheng).

Jucheng is fully compliant with extant PRC laws and will provide $3.9M in financing under the agreement for the construction of a 500 ton/year Diosmin (another flavonoid) plant, designed from the ground up around the Chinese COS Standard.

Subsequently, HFGB will issue 6.5M shares of its restricted common stock in consideration, 1.5M of which will stay restricted until HFGB approves the completed facility some eight months from now.

As the only GMP-approved Chinese vendor of Diosmin and a patent holder on the only truly efficient production method for rutin, HFGB is keenly positioned to make huge waves and the addition of this facility will boost output by 500% per year to 600 tons.

The COS Standard is a clear indicator to global markets that the quality of the product is assured.

Diosmin production lines built around the COS Standard will ensure the pinnacle of product quality, enabling more aggressive moves by HFGB within the industry and the attracting of larger clients in what is a categorically underserved global market.

Not only does this agreement signify the consolidation of HFGB’s leading footprint in China’s market for Diosmin, it also puts the Company in the pole position to capture over 50% of the Chinese export market.

CEO of HFGB, Mr. Jing’an Wang, hailed the agreement as a “milestone” for the Company and noted that, once complete, the new plant would make HFGB the largest Diosmin producer in Asia, poised to capitalize on a burgeoning global market.

European customers are already lining up with orders for the COS Standard-compliant Diosmin product and robust demand is projected to accelerate unabated, in perfect concert with HFGB’s extremely competitive pricing/quality.

An additional $20M in yearly revenues are expected to be tacked onto the Company’s bottom line as a result of the new plant’s output.

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