Sugarmade Acquires International Paper Contracts – Boosts Revenues and Provides Synergies to Cannabis Packaging Business
December 02 2016 - 8:00AM
InvestorsHub NewsWire
Sugarmade Acquires International Paper Contracts Boosts Revenues
and Provides Synergies to Cannabis Packaging Business
City of Industry, CA -- December 2, 2016 -- InvestorsHub
NewsWire -- Sugarmade, Inc. (OTC:SGMD),
today announces the purchase of international paper contracts from
Bao Coc International Paper and Plastics Limited, located in
Vietnam. Under the terms of the asset purchase agreement, Sugarmade
will assume contracts for international paper products bound for
delivery into the U.S. Sugarmade estimates the acquisition will
boost its revenue production by approximately $500,000 to $600,000
annually. Sugarmade also expects the deal to have a significantly
positive impact on other portions of its business operations.
These contracts are important not only relating to the revenue
boost we will receive, but also relating to cost reductions across
our product lines. Because Bao Coc ships dozens of containers into
the U.S. each year, we will be able to combine transpacific
shipping contracts, which will reduce freight charges relating to
our other products, commented, Jimmy Chan, CEO. This is especially
important relative to our new CannaShroud cannabis transport
system, the components of which are manufactured in Asia. The
significant reductions in freight charges will allow Sugarmade to
be even more competitive in the marketplace and will allow us to
further boost our already expanding gross margins.
Sugarmade expects the asset acquisition to close in the month of
December. The Company will issue Bao Coc five million restricted
shares in exchange for assumption of the Bao Coc contracts.
About Sugarmade, Inc. (OTC:SGMD)
Sugarmade, Inc. is a product and brand marketing company
investing in products and brands with disruptive potential.
Sugarmade's brands include CarryOutSupplies.com,
Sugarmade Tree Free Paper, FreeHand ThumbTray and
CannaShroud, the world's first Cannabis specific shipping
systems. The Company will soon be launching Sriracha Stix, a
revolutionary culinary seasoning product under official license
from Irwindale, California-based Huy Fong Foods, Inc., the maker of
Sriracha Hot Chili Sauce.
For inquiries please contact Jimmy Chan at (888) 982-1628 or
info@Sugarmade.com.
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