Shares of TWZ Corporation (TWZ), an IT product distributor, rose sharply for a second consecutive day on Thursday with shares rising by 18.18 per cent to 0.13 baht per share.
The two day climb was due to an announcement that TWZ had established a subsidiary company involved in the hemp industry.
Going into the mid-day break, the transaction value of TWZ was to 224 million baht. The rise was the fifth biggest percentage jump of the morning session. Shares had closed on Wednesday up 22.22 per cent to 0.11 baht hitting the ceiling price after the statement was uploaded on late Tuesday.
TWZ’s board of directors agreed to sign a memorandum of understanding with Rak Jang Farm Enterprise, a local community in Nakhon Ratchasima, last week to set up a hemp company Kanyarak, with TWZ will owning 51 per cent stake.
With hemp-related businesses booming, the Stock Exchange of Thailand (SET) has requested listed companies that plan to enter the industry to make public said plans.
Kanyarak will focus on selling its hemp products to groups that can utilize the hemp in their core business including beverage, food, healthcare, and cosmetics companies. TWZ’s deputy managing director Kittipong Kittipassorn said that the company expects revenue from the second quarter this year from the business.
“The company already has availability of raw materials and production … and is expected to negotiate with business partners to further expand the business within one or two months.”
Kittipong said in the statement that the company would report any progress to the SET for clarification on its business partners in the future.
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