Sugarmade acquires international paper contracts in Vietnam
(Hanoi, Vietnam, 2 December, 2016) Sugarmade, Inc. 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. (Source: press release)
Cover Image: paper boxes (representational purposes only)