Globalink Limited (OTCMKTS:GOBK) is now focused on biotechnological developments of the healthcare maintenance system as a result of the presented opportunity from China to be able to eventually become one of the major participant suppliers of the 80% of the world’s demand of the gingko leaf raw material for extraction. Globalink Limited will also remain in the Internet hotel booking services arena. The Company has developed an online hotel booking program for connecting users with available rooms in hotels across the world. The Company, through its wholly owned subsidiary OneWorld Hotel Destination Service Inc, engages in hotel booking business. The Company’s clients include travel agents in cities, such as Vancouver, Toronto, Calgary and Montreal.

Ginkgo Opportunity Details

Though the company has been generating revenues from its hotel booking business over the last several years, it’s currently developing a ginkgo plantation in China from which it expects to generate the preponderance of its revenues over the next few years.

Ginkgo cultivation represents a favorable opportunity for Globalink Limited because (i) ginkgo is a key ingredient in traditional Chinese medicine (TCM) and is widely used in the People’s Republic of China and Western countries, (ii) the ginkgo growing industry is fragmented among large number of small producers who continue to utilize archaic farming techniques and a small number of agribusinesses that are subsidiaries of or otherwise connected with ginkgo extract manufacturers and (iii) ginkgo and other TCM ingredients enjoy increasing usage among consumers worldwide and are currently accepted under U.S. and EU regulations with only minimal government intervention.

Ginkgo is administered both as a tea and by way of tablets comprised of the active chemical constituents that have been extracted from dried leaves and concentrated. TCM posits that Ginkgo is imbued with healing qualities and is prescribed by TCM healers to address a wide range of ailments. These natural active ingredients in the leaves have the function to regulate cerebral blood flow, protection against free radicals and delaying the progress of memory loss and dementia. They can improve diabetes, cardio-cerebrovascular circulation, reduce triglyceride in the blood and many more other health benefits.

Over the last several decades, tablets or pills manufactured from the extract of ginkgo leaves have proliferated across Europe and North America where ginkgo is becoming widely accepted as an herbal remedy for a variety of health conditions, principally memory loss and dementia. element.

China’s National Bureau of Statistics estimates that the TCM market in China totaled more than RMB 15 billion in 2012, accounting for 31.24% of China’s total medicine industry . China’s National Bureau of Statistics further estimates that the worldwide TCM market is increasing by between 10% to 20% each year.

Over the last several decades, the usage of ginkgo-based products has proliferated across Europe and North America where ginkgo is becoming widely accepted as an herbal remedy for a variety of health conditions, principally memory loss and dementia. Sales of ginkgo-based products are difficult to estimate but in 2012 worldwide sales were believed to be worth approximately $500 million. In Europe and the United States, products incorporating ginkgo are among the five top-selling herbal supplements. In 2002, ginkgo was the number one selling herbal supplement in the United States. The market for TCM products will continue to grow as Western consumers, particularly an aging population, look for products that they believe to be safe and inexpensive alternatives to modern pharmaceutical preparations, as a treatment to mitigate the effects of cognitive decline, such as dementia, which is one of the principal uses for ginkgo.

Globalink Limited Business Plan

Globalink Limited intends use the proceeds from a recent secondary offering for the development of a ginkgo biloba, or ginkgo, tree farm that was launched in 2015 in Pizhou City, People’s Republic of China with joint venture partner Shizhen Biotech Co., Ltd. (“Shizhen Biotech”) pursuant to the terms of a joint venture agreement signed in April 2014 (the “JV Agreement”).

During the fall of 2015, the company entered into leases with local residents comprising 100 acres of prime ginkgo farmland and immediately began preparing the land for planting, as well as acquiring equipment and hiring and training laborers. It completed planting ginkgo seeds during March 2016. The company selected its land and seeds in consultation with professors at the Nanjing Forestry University with which it works closely in all aspects of its agricultural operations. Globalink is purchasing equipment, constructing necessary buildings and taking all of the steps necessary for a fall 2016 harvest of leaves.

Throughout the month of March, 2016, its wholly-owned Chinese subsidiary Globalink (Xuzhou) Biotechnologies Co. Ltd, sowed 30,000,000 gingko biloba seedlings in its 100-acre test plot plantation in Pizhou, China. The first harvest of the gingko leaves will be in September/October, 2016. The leaves will be dried and sold to pharmaceutical manufacturers for extraction of crucial ingredients needed for the manufacturing of healthcare products. The expected yield from the first harvest would be 60 tons after the leaves have been dried. At the current market price, the in-ground inventory is worth $3.36 million.  That would translate into gross revenue of approximately $185,000 for the company.

Its strategy is to develop a vertically integrated ginkgo tree plantation at which it will cultivate ginkgo trees and harvest and process ginkgo leaves. It will dry and sell dried gingko leaves to manufacturers of ginkgo biloba extract, or GBE, for use in herbal remedies and other healthcare supplements and products. The company will also sell gingko trees which are prized in China and used extensively throughout the world for ornamental purposes. Assuming all shares of the secondary offering are sold, over the next five years Globalink expects to develop a gingko plantation that comprises approximately 1,553 acres, that will be capable of producing up to 5,600 tons of dried gingko leaves per year. At this size, the farm will be among the largest independent producers of dried ginkgo leaves in China.

Globalink’s planned plantation will incorporate modern GAP practices to maximize output and ensure the highest content of the active ingredients in its leaves. Leaves will be packaged in parcels to which it will affix pertinent information, such as the growth records of the specific product and the flavone and lactone content of the leaves, as a means of exhibiting Globalink’s transparency and to assure customers that our product meets their quality specifications. This should distinguish us from other independent growers of ginkgo and attract domestic and international customers.

This ginkgo tree farm will incorporate European style good agricultural practices throughout all phases of the growing, processing and distribution process and will seek to integrate our customer’s good manufacturing practices, or GMPs, into our processes and procedures so that buyers will have confidence that the product they purchase from us satisfies their standards. For example, the company will provide to its clients reference data that it gathers from the soil in which it grows the trees and the leaves it harvests, including information relating to the content of the active ingredients in ginkgo and the indicators of heavy metal, pesticide residues, moisture and microbes on the leaves in that batch, among other information. Globalink Limited believes it will be among the only independent ginkgo growers in China to employ these practices in its operations.

Initially, Globalink Limited will sell dried leaves to Chinese companies that manufacture ginkgo biloba extract, or GBE, utilized in TCM and that primarily sell their products in China. The company expect to quickly expand sales of dried leaves to European manufacturers of GBE tablets, where there is demand for high quality ginkgo leaves with a demonstrable lineage. In addition, when its gingko trees reach six years of age and the chemical content of the content of the active beneficial ingredients in the ginkgo leaves declines, it will sell trees to local consumers.

Assuming it has  the capital necessary to develop thus ginkgo tree farm as described in its Prospectus, Globalink Limited expects sales of ginkgo products to be our principal source of revenues within the next three years.

GOBK Outlook and Analysis

The global herbal supplements and remedies market is forecast to reach $107 billion by the year 2017, spurred by growing aging population and increasing consumer awareness about general health and well being. Gingko biloba makes up a significant portion of that market, worth approximately $500 million… a market that’s still growing at a brisk pace.

Globalink Limited is well positioned to penetrate that market, and being in the process of raising as much as $5 million, via the sale of 20 million shares of GOBK at $0.25 apiece, GOBK is empowered to make that happen. Its 100-acre test plot is expected to yield 60 tons of dried leaves, or $3.36 million worth of revenue. With a 1550-acre plantation in the works, however – enough acreage to yield 5600 tons of dried leaf – implies the capacity to drive more than $300 million worth of annual revenue, or roughly $15 million in gross revenue attributable to the company.

It won’t get there in a year. But, all signs suggest it is en route to that level of production, with revenue from the first year’s yield plus revenue from its subsidiary OneWorld Hotel Destination Service keeping the company liquid and at least partially-funded as it expands its farmed acreage. It’s not often a company of this size and age has near-term and long-term promise, and isn’t trying to proverbially  reinvent the wheel (usually a costly proposition) to reach a lofty long-term target.

Be that as it may, the strongest bullish thesis on GOBK right now is the simple fact that most investors don’t realize the company is making the transition into the agriculture/neutraceutical arena, opening the door to revenue opportunities it simply couldn’t access before.

Given the tiny market cap it currently sports and the minimal funding it will need to move deeper into the gingko industry, Globalink Limited is a compelling speculation.