SAN FRANCISCO, July 16, 2014 (Press Release) -Sugarmade, Inc., a marketer and distributor of sustainable tree-free paper products, is very pleased to announce the closing of its merger 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 combined Company's primary goals are to further the distribution of its tree-free copy paper into major corporations and institutions and to significantly expand the product catalog and distribution of the custom printed and generic takeout restaurant-oriented products manufactured and marketed by CarryOutSupplies.com.
"Trees are among the most efficient carbon sequestration devices known to mankind and with levels of carbon in the atmosphere skyrocketing it makes little sense for the world to continue to cut down 4 billion trees annually simply for the purpose of paper production. At Sugarmade we believe we have a better way," commented Clifton Leung, CEO.
Sugarmade paper, which is produced via a proprietary formulation of sugarcane waste (bagasse) and bamboo, is not only tree-free, but it is also much more environmentally friendly than tree-based paper production. According to the U.S. Environmental Protection Agency, pulp and paper mills are among the worst polluters of the air, water and land. Sugarmade's production process produces far less CO2 emissions, significantly less solid waste and wastewater compared to other production methods making Sugarmade paper the obvious environmental choice over virgin pulp-based paper and even recycled paper products.
Sugarmade is making free samples of this unique environmentally sound paper available to consumers and investors. To request a sample, simply send an email with "Sample" in the subject line and an address for shipment in the body of the email to firstname.lastname@example.org.
Details of the merger include the following:
- During calendar 2013, CarryOut had revenues in excess of $9 million. With future cross selling of products, expansion of the sales and market staffs and an improved balance sheet, management believes it can significantly grow revenues in excess of this level over the coming year.
- Sugarmade has a relatively small public "float" of free trading shares at only 2.2 million. All remaining shares are held, or will be held, in certificate form and will subject to trading restrictions. All officers and directors are restricted from any sales for at least 6 or 12 months, and will thereafter be subject to normal volume limitations. Post merger, including the increase in shares for the capital raise, it is expected there will be approximately 160 million shares outstanding.
- Approximately $600,000 of new capital is being injected into the organization with the primary use of funds being the expansion of sales and marketing efforts and the expansion of working capital in order to provide better terms to major customers who are expressing the desire to increase their orders with the Company.
- Management has been very successful in reducing debt levels with current and former employees and creditors agreeing to take long-term equity positions in the Company. Additionally, the Company has been very successful in extending its notes payables into Fiscal 2016 and in reducing the level of interest to be owed on the notes. Additionally, nearly all outstanding warrants have been cancelled. The Company believes these debt reductions will meaningfully boost financial and balance sheet ratios improving the Company's ability to finance the strong growth it is projecting for future periods.
Mr. Leung continued, "We plan to meaningfully expand our distribution of tree-free products over the coming months to both the home and office environments and to the restaurant and fast food industries. Consumers are more than ever desiring environmentally friendly products and we believe we are very well positioned to capitalize on this trend. We welcome all of CarryOut's employees, investors, suppliers and customers to the Sugarmade family."
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/.