Company documents show Yongji, a subsidiary of a Guizhou-based company, has taken full control of Pijen, which owns more than 95 per cent of the shares in Tasmanian Botanics. Yongji was already a part-owner in Pijen before buying out Australian shareholders.
Tasmanian Botanics cultivates, manufactures and packages medicinal cannabis products from a farm and processing facility at Pontville in southern Tasmania. More than 150 people work at the site, which includes a greenhouse, an outdoor crop of about 2.5 hectares, and packaging and manufacturing facilities.
Chief executive Craig Knight said while foreign investment could “sound ominous,” there was no indication of significant changes for staff or customers. “They want the company as it is, if not bigger than it is, so there are no issues around job security or changes to operations,” he said.
“People don't invest this type of money into something they don't have confidence in,” Mr Knight said, describing the deal as a “significant investment” and a “good synergy” with Yongji's other assets in the Australian medicinal cannabis industry. He also acknowledged concerns about foreign ownership, saying, “I can understand there's a world we would like to think everything that's in Tasmania is owned by Tasmanians,” but added that such investment “happens all over the world.”
The takeover comes at a time when the Australian medicinal cannabis industry is grappling with increased competition from overseas manufacturers, particularly in Thailand.