CITY OF INDUSTRY, CA / ACCESSWIRE / July 22, 2015 / Sugarmade, Inc. (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. (SGMD)
Sugarmade, Inc., (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.
For media and press or investor inquiries, please contact the Company at info@SugarMade.com or Katherine Zuniga at (888) 880-0081.
SOURCE: Sugarmade, Inc.