Oriental Rise Holdings (NASDAQ:ORIS) has entered into a non-binding letter of intent to acquire a controlling interest in Hubei Daguan Tea Industry Group Co., a vertically integrated producer based in the tea-rich region of Yingshan County.
The deal, announced late Tuesday, represents a significant step in Oriental Rise’s strategy to control its entire value chain, from cultivation and automated processing to branding and international export.
Hubei Daguan Tea operates substantial self-managed plantations and modern production facilities that produce premium, bulk, and export-grade teas.
By integrating these assets, Oriental Rise aims to optimize its cost structure and pivot its product mix toward higher-margin offerings.
The announcement triggered a sharp reaction in the markets, with shares surging as much as 47% in after-hours trading.
The rally follows a period of extreme volatility for the micro-cap company, which recently implemented a one-for-twenty reverse stock split effective December 30 to meet Nasdaq’s minimum bid price requirements.
While the acquisition offers a pathway to enhanced supply stability and quality control, the transaction remains subject to comprehensive due diligence and the execution of definitive agreements.