LOS ANGELES, December 8, 2016 /PRNewswire/ --
Sugarmade, Inc. (OTC: SGMD) today announces an important boost to its revenue outlook via the closing of international paper contracts from Bao Coc International Paper and Plastics Limited, located in Vietnam. Sugarmade will assume contracts for international paper products bound for delivery into the U.S., which will boost revenue production by approximately $500,000 to $600,000 annually and will provide important cost of goods reductions relating to other products offered by Sugarmade. The Company will issue Bao Coc five million restricted shares in exchange for assumption of the contracts.
"These contracts represent an important strategic opportunity 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 cargo 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."
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.