San Francisco, CA / IHNW via ACCESSWIRE / July 15, 2014 / Sugarmade, Inc. (OCTQB:SGMD), a marketer and distributor of sustainable tree-free copy paper products, today announces it has signed a definitive merger agreement 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 merge is expected to close on July 16, 2014.
During calendar 2013, CarryOut had revenues in excess of $9 million. The respective management teams believe the combined entity will be capable of significantly growing this revenue over future periods by better utilizing sales force resources, enhancing working capital in order to allow better customer terms for payment, and by expanding product lines. Utilizing the funds raised by new investors, Sugarmade plans to accelerate its marketing programs for its 100% tree-free copy and multipurpose paper with an emphasis on large corporate and institutional users.
Jonathan Leong, a Director at Sugarmade commented, ”We are very excited to be merging with CarryOut, which has established a leadership position with many growing and prosperous carry out food chains. With the backing of a publicly traded company we believe their sales and growth prospects will be significantly enhanced. Additionally, we plan to fully utilize their warehousing, shipping and sales expertise to help us to further our revenue and production goals for our very exciting tree-free paper product. We welcome CarryOut to the Sugarmade family.”
Under the proposed terms, all outstanding shares of CarryOut will be exchanged for approximately 71 million common shares of the Company with the Company acquiring all off CarryOut’s customer, assets and liabilities. Upon closing of the acquisition, it is expected there will be approximately 160 million common shares outstanding.
Mr. Leong continued, “We have received considerable support from our shareholders and note holders to facilitate this merger. The due dates of on the majority of our convertible notes have been extended to July of 2016 with the interest rates on the notes being significantly reduced. Additionally, we have removed hundreds of thousands of dollars of other debt from the balance sheet with past employees and creditors agreeing to take a long-term equity stake in the newly combined organization. We thank all of the Sugarmade stakeholders for the strong support they have provided. We look forward to more aggressively marketing of both the Sugarmade tree-free products and the custom and generic products offered by our new partners at CarryOutSupplies.com.”
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 http://www.carryoutsupplies.com/.
Source: Sugarmade, Inc.