Sugarmade and CarryOutSupplies.com Close Merger Creating a Dynamic Force for Environmental Change in the Paper Industry
July 16 2014 - 6:00AM
InvestorsHub NewsWire
San Francisco, Calif., July 16, 2014 - Sugarmade, Inc.
(OCTQB:SGMD), a marketer and distributor of sustainable tree-free
paper products, is very pleased to announce the closing of its
merger with CarryOutSupplies.com of City of Industry, California, a
producer and wholesaler of custom printed and generic paper
products to more than 3,000 takeout restaurant
establishments. The combined Company’s primary goals are to
further the distribution of its tree-free copy paper into major
corporations and institutions and to significantly expand the
product catalog and distribution of the custom printed and generic
takeout restaurant-oriented products manufactured and marketed by
CarryOutSupplies.com.
“Trees are among the most efficient carbon sequestration devices
known to mankind and with levels of carbon in the atmosphere
skyrocketing it makes little sense for the world to continue to cut
down 4 billion trees annually simply for the purpose of paper
production. At Sugarmade we believe we have a better way,”
commented Clifton Leung, CEO.
Sugarmade paper, which is produced via a proprietary formulation of
sugarcane waste (bagasse) and bamboo, is not only tree-free, but it
is also much more environmentally friendly than tree-based paper
production. According to the U.S. Environmental Protection
Agency, pulp and paper mills are among the worst polluters of the
air, water and land. Sugarmade’s production process produces
far less CO2 emissions, significantly less solid waste and
wastewater compared to other production methods making Sugarmade
paper the obvious environmental choice over virgin pulp-based paper
and even recycled paper products.
Sugarmade is making free samples of this unique environmentally
sound paper available to consumers and investors. To request
a sample, simply send an email with “Sample” in the subject line
and an address for shipment in the body of the email to
info@sugarmade.com.
Details of the merger include the following:
- During calendar 2013, CarryOut had revenues in excess of $9
million. With future cross selling of products, expansion of
the sales and market staffs and an improved balance sheet,
management believes it can significantly grow revenues in excess of
this level over the coming year.
- Sugarmade has a relatively small public “float” of free trading
shares at only 2.2 million. All remaining shares are held, or will
be held, in certificate form and will subject to trading
restrictions. All officers and directors are restricted from
any sales for at least 6 or 12 months, and will thereafter be
subject to normal volume limitations. Post merger, including
the increase in shares for the capital raise, it is expected there
will be approximately 160 million shares outstanding.
- Approximately $600,000 of new capital is being injected into the
organization with the primary use of funds being the expansion of
sales and marketing efforts and the expansion of working capital in
order to provide better terms to major customers who are expressing
the desire to increase their orders with the Company.
- Management has been very successful in reducing debt levels with
current and former employees and creditors agreeing to take
long-term equity positions in the Company. Additionally, the
Company has been very successful in extending its notes payables
into Fiscal 2016 and in reducing the level of interest to be owed
on the notes. Additionally, nearly all outstanding warrants
have been cancelled. The Company believes these debt
reductions will meaningfully boost financial and balance sheet
ratios improving the Company’s ability to finance the strong growth
it is projecting for future periods.
Mr. Leung continued, “We plan to meaningfully expand our
distribution of tree-free products over the coming months to both
the home and office environments and to the restaurant and fast
food industries. Consumers are more than ever desiring
environmentally friendly products and we believe we are very well
positioned to capitalize on this trend. We welcome all of
CarryOut’s employees, investors, suppliers and customers to the
Sugarmade family.”
About Sugarmade, Inc.
Each year approximately 4 billion trees worldwide are cut down to
make paper. At Sugarmade we believe that is 4 billion trees
too many. Sugarmade paper is 100% tree-free and made of
bagasse, a residual by-product of sugarcane, and bamboo, both
rapidly renewable resources. The paper is acid free and is 100%
compostable and recyclable. Products include printing, writing and
copy paper, among other items, which Sugarmade has begun marketing
in the United States and intends to market on a global basis. Based
in California., Sugarmade ensures superior quality through rigorous
testing by nationally recognized testing organizations.
Sugarmade paper can be purchased online at Officemax.com or
at http://www.officemax.com/office-supplies/paper/copy-multipurpose-paper/product-prod3450808.
About CarryOut Supplies.Com
CarryOutSupplies.com is a producer and wholesaler of custom printed
and generic takeout supplies. CarryOut, which services more
than 3,000 takeout establishments, restaurants and other food
service operators, is headquartered at 167 N Sunset Ave, City of
Industry, CA 91744, with two additional warehouse locations in
Southern California. Additional information on the company
can be viewed at www.CarryOutSupplies.com.
Contact:
info@sugarmade.com
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