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Be the first with the news that moves the market- Imperial Ginseng Products (IGP) has announced that it will completely cease any new plantings of ginseng crops
- The company has also decided to abandon the one-year-old and two-year-old ginseng crops currently under cultivation
- This follows on from an announcement in May, when the company chose not to plant new crops for the summer
- The company made these decisions because of declining ginseng prices, COVID-19, and political tensions between Canada and China
- Imperial Ginseng Products (IGP) last traded on October 16 for C$0.34 per share
Imperial Ginseng Products (IGP) has announced that it will completely cease any new plantings of ginseng crops.
In addition, the company has decided to abandon all of its immature one-year-old and two-year-old ginseng crops. Measuring approximately 203 acres, these fledgling crops represent roughly 40 per cent of Imperial Ginseng’s crops currently under cultivation.
However, the company has stated that it will continue with its plan to harvest all of the mature four-year-old and five-year-old crops in this fiscal year.
This latest announcement follows on from a company announcement in late May, when Imperial Ginseng chose not to plant new crops for the summer. At the same time, the company announced its intention to prematurely harvest 66 acres of ginseng which it planted for 2019’s summer.
On that day in May, Imperial Ginseng’s share price dropped by as much as 22.39 per cent.
All of these decisions about the company’s crops are the result of various factors, which have contributed to create a struggling ginseng market. In particular, the ongoing COVID-19 pandemic, and political tensions between Canada and China have caused ginseng prices to decline over the past few months.
As Imperial Ginseng has serious doubts about future ginseng prices, the Board believes that these decisions are in the best interest of the company and its shareholders.
In its announcement, the company’s Board of Directors commented on its financial expectations for the year ahead.
“The Board believes that, given its projected cash flows and current cash position, the company will be financially solvent for the next twelve months,” the announcement said.
Imperial Ginseng Products (IGP) last traded on October 16 for C$0.34 per share.
