Farmmi To Jointly Invest In RMB20M New Urban Distribution Company - Farmmi (NASDAQ:FAMI)

Agriculture products supplier Farmmi Inc FAMI has entered into a strategic investment and cooperation agreement, through its subsidiary Farmmi Enterprise Management Co Ltd., with Sigma Holding Co Ltd, and Hangzhou Xuyue Interactive Culture and Media Co Ltd.
The partners will jointly invest in establishing a new urban distribution company as part of a 50-year agreement.
The new company will initially have a total registered capital of RMB 20 million before September 30, 2021.
Through the agreement, Farmmi will invest RMB 5 million, accounting for 25% of the total registered capital of the new company.
“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,” said Yefang Zhang, Chief Executive Officer.
Price Action: FAMI shares are trading higher by 3.49% at $0.47 on the last check Wednesday.