- 3 Partners to Invest in the Creation of New Urban
- Strengthens Presence in Broader Agricultural Industrial
- Target Overseas Capital Market Listing to Realize Investment
LISHUI, China, June 23, 2021 /PRNewswire/ -- Farmmi, Inc.
("Farmmi" or the "Company") (NASDAQ: FAMI), an agriculture products
supplier in China, today announced
its entry into a strategic investment and cooperation agreement
(the "Agreement"), through its subsidiary Farmmi (Hangzhou) Enterprise Management Co., Ltd.,
with Sigma Holding (Hangzhou) Co.,
Ltd. ("Sigma"), and Hangzhou Xuyue Interactive Culture and Media
Co., Ltd. ("Hangzhou Xuyue") (collectively referred to as the
"Partners"). The strategic investment and cooperation
agreement signals Farmmi's active expansion into the distribution
network of agricultural products.
Given the rise of domestic community group purchasing, the last
kilometer of the distribution of fresh food has become a major
bottleneck and challenge. Professional distribution services
for urban communities have emerged in response to benefit from the
trend and to meet the higher demand. The market volume of
community group-buying market in China was estimated to be RMB 34 billion in 2019 and RMB 72 billion in 2020. (Source: iiMedia
Research) It is anticipated that the market volume will
exceed RMB 1 trillion in 2023 as
consumption habits take shape.(Source: Founder Securities)
Farmmi, Sigma and Hangzhou Xuyue are partnering and will jointly
invest in the establishment of a new company as part of a 50-year
agreement. The new company is committed to becoming a
comprehensive service provider of community group purchasing
distribution networks, and will seek to benefit from continued
broader market distribution trends.
Ms. Yefang Zhang, Farmmi's
Chairwoman and CEO, said, "We are partnering with two strong
companies, which will give the new company the financial resources
and expertise critical to a successful launch. We have
conducted extensive market research and have a plan in place to
ensure we move quickly and begin capturing our share of the large
distribution opportunity. The 'last mile of delivery' poses a
challenge to all the distribution platforms, represents a major
opportunity for the launch of an urban distribution service for
community group-buying. Fresh products, like fruits and
vegetables, are the most prominent category in community group
buying, which lays a solid foundation for us to embrace the
distribution network of agricultural products. It is also in line
with our strategy to expand into the whole agricultural industry
chain. This deal is expected to strengthen the company's presence
in agricultural supply chain and improve its profit."
The partners, all based in Hangzhou City, Zhejiang Province, have agreed that the new
company will initially have a total registered capital of
RMB 20 million before September 30, 2021. Sigma has agreed to
invest RMB 12 million, accounting for
60% of the total registered capital of the new company. Farmmi has
agreed to invest RMB 5 million,
accounting for 25% of the total registered capital of the new
company. Hangzhou Xuyue has agreed to invest RMB 3 million, accounting for 15% of the total
registered capital of the new company.
About Farmmi, Inc.
Headquartered in Lishui, Zhejiang, Farmmi, Inc. (NASDAQ: FAMI), is an
agricultural products supplier, processor and retailer of Shiitake
mushrooms, Mu Er mushrooms, other edible fungi and other
agricultural products. For further information about the Company,
please visit: http://ir.farmmi.com.cn/.
About Sigma Holding (Hangzhou) Co., Ltd.
Sigma was incorporated in Hangzhou, Zhejiang,
China on June 26, 2008. It is
the controlling shareholder of Shanghai Eliansy Industry Group
Corporation Limited, a public company in China.
About Hangzhou Xuyue Interactive Culture and Media Co.,
Hangzhou Xuyue was incorporated in Hangzhou, China on June
8, 2020. It has experience in community group-buying
This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements, including the potential impact of COVID-19 on our
business within and outside of China, the prospects of market volume of
community group-buying market and the investment return. These
forward-looking statements involve known and unknown risks and
uncertainties and are based on current expectations and projections
about future events and financial trends that the Company believes
may affect its financial condition, results of operations, business
strategy and financial needs. Investors can identify these
forward-looking statements by words or phrases such as "may,"
"will," "expect," "anticipate," "aim," "estimate," "intend,"
"plan," "believe," "potential," "continue," "is/are likely to" or
other similar expressions. The Company undertakes no obligation to
update forward-looking statements to reflect subsequent occurring
events or circumstances, or changes in its expectations, except as
may be required by law. Although the Company believes that the
expectations expressed in these forward-looking statements are
reasonable, it cannot assure you that such expectations will turn
out to be correct, and the Company cautions investors that actual
results may differ materially from the anticipated results.
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SOURCE Farmmi, Inc.