"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 +1-(888)-982-1628 or info@Sugarmade.com.
SOURCE Sugarmade, Inc.