HQS invests $11.5M in China

HQ Sustainable Maritime Industries (HQS), a producer of functional, sustainable Tilapia biomass, including fish and personal healthcare products says Jiahua, a wholly owned HQ subsidiary in China, is acting to seize immediate opportunities for its range of Marine Bio health products to further expand its operations in the country to a market consuming over $700 million in health products.

The market is experiencing double digit annual growth and increased awareness of the importance of the company's products;

The management believes that Jiahua is particularly well positioned and has identified an immediate window of opportunity arising from the following events in China.

In June last year, a change in China legislation made it a criminal offense to manufacture or certify substandard products for direct or indirect human consumption.

This led to the closure of almost one-third of the nutraceutical manufacturers in China.

Jiahua is now GMP certified and awarded as leading brand. Six of its products are awarded as amongst the top 10 leading health products in China.

This certification is valid for two years from March this year.

The company has a long-term opportunity to list Jiahua in Hong Kong, where China-centric consumer product companies are especially attractive.

The listing will increase significant value in the Jiahua subsidiary of HQS, with 65-75% to be owned by HQS after the official listing.

The management was also able to raise $11.5 million in equity financing to be fully utilized to develop this opportunity.