HONG KONG, May 14, 2020 /PRNewswire/ -- Horrison Resources Inc. (OTC PINK:HRSR) announces the completion of the agreement as of March 1, 2020 to acquire 1,000 Aquilaria (also known as Agarwood) trees from Mr. Nee Seng, Yap as part of its effort to combine long term financial growth of the company and to tackle climate crisis.
Agarwood is a fragrant dark resinous wood which forms in the heartwood of Aquilaria spp. and Gyrinops spp. trees (large evergreens native to Southeast Asia) after they are infected by fungus. It is now rarely seen in such habitats and is now considered to be threatened with extinction worldwide.
Due to its extremely limited supply, rarity and high value, Agarwood is commonly referred to as "Liquid Gold" or the "Scent of Heaven." It is widely used as a raw material for fragrances, traditional medicine, cosmetics, religious purposes, art, and food ingredient. Agarwood is among the most commercially valuable plant species in the world. In an article published on Frontiers in Plant Science on July 16, 2019 (PMID: 31379890), it was reported that the price per kilogram of Agarwood can range from US$100 to US$100,000 depending on the quality and grades.
Oud oil distilled from the Agarwood chips is one of the world's most expensive natural commodities, selling for more than US$50,000 a kilogram. Oud oil is a key skin care ingredient with many anti-inflammatory and anti-microbial properties. In addition, Oud oil is also used as a key ingredient by all the major international fragrances companies to portray their fragrances as luxury items and status symbols. The increasing demand for organic cruelty-free cosmetics is a reason why approximately US$90 million of Oud oil was exported into the United Kingdom and Europe in 2019.
The current global market for Agarwood is estimated to be in the range of US$6–8 billion and is growing rapidly, displaying unlimited future business potential. According to Persistence Market Research, the Agarwood chips market is forecasted to reach nearly US$64 billion by the end of 2029.
The CEO of HRSR, Nee Seng, Yap (Tony Yap) explained that Agarwood is a green 'gold mine' of the future. The acquisition of Agarwood trees would deliver strong and steady long term value and ultimate growth to the company and its shareholders. The primary objectives of this acquisition are to generate income from the harvest of Agarwood trees, propagation of its benefits while conserving the Agarwood habitat in a sustainable and environmentally friendly manner, and to effectively offset the carbon footprint of our investors.
Timber investments such as Agarwood trees offer great hedge against inflation uncorrelated to either stocks or bonds thereby secure long term value of the company's portfolio. Agarwood trees allow for flexibility of harvesting more when prices are high and less when prices are low which render Agarwood trees to continue grow independent of the pace of economic activity.
Mr. Tony Yap anticipates that the benefit from the acquisition will come not only from the price of the cut Agarwood, but from the growth of the Agarwood trees themselves. The products made of and from Agarwood are still rare which indicates Agarwood will not suffer from devaluation after long term storage. As a collectible commodity, Agarwood is able to maintain its value and has low decay rate. The longer it is stored the more valuable it is. Each and every part of the tree, namely: leaf, flower, fruit, trunk, branch, skin and root, has its own value. Mr. Tony Yap is confident that the future market of Agarwood is immeasurable. Combine the aforementioned with skilful interventions of experienced managers and industry experts, the profitability and sustainability can be maximised.
Mr. Tony Yap is a seasoned business entrepreneur who possesses great experience, skill and knowledge in the Agarwood industry. He had spent years conducting extensive studies and investigation from all around the world in the subject matter. He serves as the Chairman of Agarwood Entrepreneur Malaysia Association (Non-Governmental Organization).
The company is hopeful that this initiative will bring about various environmental, economic and social benefits, and that Agarwood trees will be valuable asset that hopefully one day can lead to steady profits which may ultimately benefit all shareholders/investors. Green investments are on the rise both in popularity and the returns they offer. Aside from company's corporate social responsibility (CSR) to address climate change this acquisition can create perfect asset for long-term security and wealth building. The company will continue to explore opportunities in working towards making significant contribution to the global Agarwood plantation and industry.
Disclaimer: The contents contained herein are for informational purposes only. This is not an investment advice nor should be treated as a substitute for services of a certified financial advisor. Any reliance placed upon the information provided in this document, and the appropriateness of opinions, assumptions and qualifications used, is a matter for the reader's own commercial judgement. The company is in no respects making any guarantee of profits or of protections against loss or realization of any gain from investment made with the company.
The company currently does not have any profits or revenue nor can it confirm that it will have profits or revenue in the future.
SOURCE Horrison Resources Inc.