Benzinga | Jun 23, 2021 01:29PM EDT

Farmmi To Jointly Invest In RMB20M New Urban Distribution Company

* Agriculture products supplier Farmmi Inc (NASDAQ: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.