Sugarmade Enters LOI with Boa Coc Paper for Accretive Acquisition
July 22 2015 - 9:15AM
InvestorsHub NewsWire
Sugarmade Enters LOI with
Boa Coc Paper for Accretive Acquisition
City of Industry, CA -- July 22, 2015 --
InvestorsHub NewsWire -- Sugarmade, Inc. (OCTQB:SGMD),
a supplier of environmentally friendly tree free office paper made
from sugarcane waste and bamboo and custom printed paper supplies
to the restaurant industry, today announced its intent to acquire
Bao Coc International Paper & Plastic, LTD, a manufacturer of
high-grade postconsumer paper products. Sugarmade expects the
acquisition, which is pending the completion of mutual due
diligence and an injection of capital by Sugarmade into Bao Coc, to
be accretive to the Company’s revenues and
earnings.
“We plan to fully integrate this Vietnamese
operation into Sugarmade as we believe it fits well into our
increasingly environmental friendly product portfolio.
Additionally, it will increase both our revenue growth and
earnings. We have also entered into negotiations for at least
two other accretive acquisitions, which will add further to our
corporate growth and development,” commented Jimmy Chan, CEO of
Sugarmade.
Sugarmade expects to realize approximately
$800,000 to $1 million of new revenue and positive cash flow from
the Bao Coc acquisition over the 12-month period subsequent to the
closing of the transaction. Several new products are currently
being planned under the Bao Coc umbrella, which are expected to
further boost both revenues and earnings of the operation.
Management of the Company believes there are certain synergies to
be gained by the integration of Bao Coc into the Company,
including, but not limited to, costs savings relative to
trans-pacific container shipments, increased purchasing power and
improved leverage of management talent across multiple
operations.
Bao Coc International Paper & Plastic, LTD
is at the cutting edge of the rapidly evolving environmental and
sustainability movement within Southeast Asia. The Company utilizes
virtually 100% recycled paper in its manufacturing processes
yielding a paper product that is not only high quality, but also
friendly to the environment. These products are then shipped
to the United States for use mainly in the fast food industry under
long-term contracts and commitments.
About Sugarmade,
Inc.
(OTC:SGMD)
Sugarmade,
Inc., (OTC:SGMD)
is a City of Industry, California-based, publicly traded company
engaged in a variety of business operations, including
advertising-supported printed materials for the restaurant and
takeout industries, generic and custom printed products for these
same industries, and environmentally friendly tree free office and
copy paper. Sugarmade also holds a minority stake in several
patents relating to the seasoning of food products. For more
information on Sugarmade please visit us at
www.Sugarmade.com or at www.CarryOutSupplies.com.
Contract
Information:
For media and press or investor inquiries,
please contact the Company at info@SugarMade.com
or
Katherine Zuniga at (888) 880-0081.
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