Sichuan Hebang's business includes production and sales of soda ash, ammonium chloride,ammonia, calcium carbonate, etc., but not glyphosate. Whether Sichuan Hebang can obtainglyphosate production and operating license is uncertain now. Mo stated that SichuanHebang's glyphosate production project needs the approval from the National Developmentand Reform Commission, People's Republic of China and the Ministry of EnvironmentalProtection, People's Republic of China, according to current glyphosate related policies andregulations. But whether Sichuan Hebang can obtain the approval from the above twodepartments is uncertain.The other obstacle is fund shortage. According to 2013 semi-annual report of Sichuan Hebang,Sichuan Hebang has huge fund, with its cash and cash equivalents up to USD79.85 million(RMB489 million) in total by the end of H1 2013. Sichuan Hebang has been constructing threebig projects, including 6 turn to be 9 project (namely the project of 600,000t/a sodaco-production capacity transforms to 900,000t/a soda co-production capacity), phosphatedevelopment project and Wujun glass project, all of which are by self-finance. At present,these three projects have been invested a little more than 30% of total investment fund, whichmeans that these three project still need the remaining total investment of about USD381.09million (2.33 billion). Undoubtedly, according to its current fund situation, it's very hard for Sichuan Hebang to invest in the glyphosate project.However, Sichuan Hebang is still trying its best to solve the two main obstacles. As for the glyphosate production and operating license, Mo stated that Sichuan Hebang willactively apply to the local related government departments. Furthermore, if Sichuan Hebangfails to apply for glyphosate production and operating license, it may purchase a smallglyphosate manufacturer which has glyphosate production and operating license in SichuanProvince. As for the fund shortage, Sichuan Hebang can solve it by many ways, such as equity pledgefinancing, bank loans, directional stock issuance financing, etc. According to theannouncement released by Sichuan Hebang on 7 Sept. 2013, Sichuan Hebang InvestmentGroup Co., Ltd. (Sichuan Hebang Investment), Sichuan Hebang's controlling shareholder, hasmade a deal with Hong Yuan Securities Co., Ltd. (Hong Yuan Securities) that Sichuan HebangInvestment pledges 39.1 million shares of Sichuan Hebang to Hong Yuan Securities for financing. Although Sichuan Hebang Investment didn't reveal the equity pledge financingamount, it may be more than USD81.65 million (RMB500 million). According to SichuanHebang's average stock price in H1 2013, the value of 39.1 million shares is about USD86.26million (RMB528.25 million). It's estimated that the fund from Sichuan Hebang Investment'sequity pledge financing will be invested in Sichuan Hebang's glyphosate project.If the two main obstacles are solved successfully, Sichuan Hebang's glyphosate project isexpected to be launched by the end of 2014 or at the beginning of 2015. Whether glyphosatemarket at that time is still thriving or not is uncertain, so glyphosate project will be a high riskinvestment project for Sichuan Hebang.