Farmmi, Inc. Enters into Strategic Cooperation Agreement Aimed to Further Expand Its Logistic Services Business

Rhea-AI Summary

Farmmi announced that its subsidiary, Farmmi USA, has entered into a strategic cooperation agreement with Mazon Technology for warehousing and logistics services. The partnership could potentially generate $10 million in annual orders for Farmmi USA. This development follows the launch of Farmmi's warehousing logistics base in California in August 2024. The services include one-piece delivery, shipping container warehousing, and customs clearance agency services. The company views this as a significant step in expanding its warehousing and logistics business operations.

Positive

• Potential $10 million annual revenue from new logistics agreement
• Strategic expansion into warehousing and logistics services
• Successfully launched California logistics base in August 2024

Negative

• None.

Insights

Financial Analyst

This strategic partnership signals a meaningful revenue opportunity for Farmmi, with potential $10 million in annual orders representing a significant boost to the company's logistics segment. The expansion into warehousing and logistics services through their California base demonstrates strategic diversification beyond their core agricultural products business.

The deal with Mazon Technology provides steady revenue potential through "one-piece delivery" services, a growing segment in e-commerce logistics. For a company with a market cap of just $3.8 million, this agreement could substantially impact their financial outlook. However, investors should note that the $10 million figure is potential revenue, not guaranteed and execution will be key to realizing this opportunity.

LISHUI, China, Oct. 24, 2024 /PRNewswire/ -- Farmmi, Inc. ("Farmmi" or the "Company") (NASDAQ: FAMI), an agriculture products supplier in China, today announced that the Company's subsidiary, FARMMI USA INC. ("Farmmi USA"), has reached an agreement in principle with Mazon Technology LLC for strategic cooperation in warehousing and logistics services that could potentially bring in $10 million in annual orders for Farmmi USA. The Company considers it a new major operational development for Farmmi USA since the launch of the trial operation of the Company's warehousing logistics base in California in August 2024.

Mazon Technology LLC is a California-based logistics company specialized in "one-piece delivery" services for e-commerce products. The Company's warehousing and logistics base operated by Farmmi USA mainly provides "one-piece delivery", shipping container warehousing, customs clearance agency services and other related business. The Company expects the strategic cooperation between the company and Mazon Technology LLC will help further develop the Company's warehousing and logistics business.

Ms. Yefang Zhang, Farmmi's Chairwoman and CEO, stated that the Company's cooperation with Mazon Technology was a major development in the Company's expansion into the warehousing and logistics industry. The Company has not only obtained a new customer, it also showcased the significant progresses we have made in our warehousing and logistics business.

About Farmmi, Inc.

Established in 1998, Farmmi Inc. (Nasdaq: FAMI) is an agricultural products supplier, processor and retailer of edible mushrooms like Shiitake and Mu Er, as well as other agricultural products. Farmmi sells its products both online and offline. For further information about the Company, please visit Farmmi's website.

Forward-Looking Statements

No statement made in this press release should be interpreted as an offer to purchase or sell any security. Such an offer can only be made in accordance with the Securities Act of 1933, as amended, and applicable state securities laws. Certain statements in this press release concerning our future growth prospects are forward-looking statements regarding our future business expectations and intended to qualify for the "safe harbor" under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding lingering effects of the Covid-19 pandemic on our customers' businesses and our end purchasers' disposable income, our ability to raise capital on any particular terms, fulfillment of customer orders, fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, our ability to realize revenue from expanded operation and acquired assets in China, our ability to attract and retain skilled professionals, client concentration, industry segment concentration, and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings. These filings are available at www.sec.gov. Farmmi may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of the date of this press release. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law. 

For more information, please contact:

Farmmi, Inc.
Investor Relations
Tel: +86-0578-82612876
ir@farmmi.com 

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SOURCE Farmmi, Inc.

FAQ

What is the potential annual revenue from Farmmi's (FAMI) agreement with Mazon Technology?

The strategic cooperation agreement between Farmmi USA and Mazon Technology could potentially generate $10 million in annual orders for Farmmi USA.

When did Farmmi (FAMI) launch its California warehousing logistics base?

Farmmi launched its trial operation of the warehousing logistics base in California in August 2024.

What services will Farmmi (FAMI) provide through its logistics base?

Farmmi's logistics base will provide one-piece delivery, shipping container warehousing, customs clearance agency services, and other related business services.