(Yicai) Feb. 28 -- Shares of Layn Natural Ingredients surged after the Chinese maker of sweeteners and natural flavors said it will spend USD5 million to start a business of cannabidiol atomizers, an e-cigarette-like product for CBD, in the United States.

Layn [SHE: 002166] jumped by 6.1 percent to close at CNY7.30 (USD1) after hitting the 10-percent limit-up earlier.

The Chinese maker of plant-based ingredients will set up subsidiaries in California and Texas for brand operations, product development, and sales of the new product that requires atomization of industrial hemp, the Guilin-based firm announced yesterday. Six months after that, it might invest more based on initial operations.

Layn entered the industry of industrial hemp processing in April 2019 and since 2022, it has operated a plant to extract active ingredients of hemp in Indiana, per the annual report. CBD, derived from hemp, can allegedly help reduce anxiety and inflammation quicker when atomized and inhaled in a process similar to vaping.

Layn has already made three new hires with resources linked to wholesale and retail channels, as well as branding in the US. It recruited a general manager, a sales director, and a supply chain director for the new business that aims to earn USD68 million in revenue in the first three years and USD10 million in net profit.

Editor: Emmi Laine