Full
Alliance Group, Inc. (OTCPK: FAGI), Signs Agreement with Wincon
Distributing, Inc.
Lodi, CA - July 06, 2017 - InvestorsHub
NewsWire - Full Alliance Group Inc. (OTCPK:
FAGI), Signs Agreement with Wincon Distributing,
Inc. Full Alliance Group, Inc. (OTCPK:
FAGI), a multinational holding company, is pleased to announce
that it has completed negotiations with Wincon Distributing Inc.,
and has signed documents to proceed with a profit-sharing joint
venture for Wincon’s tobacco distribution
business.
FAGI’s role in the joint venture will be to
provide working capital for expansion of operations. In exchange,
FAGI will receive 40% of the monthly gross profit, with the
remaining 60% staying with Wincon. This is determined after
repayment of the working capital to FAGI.
Under the terms of the agreement, FAGI has agreed
to deliver to Wincon, upon completion of the first order,
compensation in the form of 100,000 shares of company stock.
Moving forward, the joint venture expects gross proceeds from
operations in excess of US$15 million, or approximately $2.5
million/month, for the remainder of calendar year
2017.
Wincon’s business strategy is unique in that it
only distributes goods grown and manufactured by Tribal sources,
and then only sells the products on American Indian Nation
land. This approach allows the company to be particularly
aggressive with tobacco pricing, where state taxes have become
fairly heavy-handed.
Wincon’s tribal tax exemption from the MSA tax
($6.35/carton), California excise tax ($8.70/carton, to increase to
$28.70), and state sales tax (8.5% in California), allows for
consumers to purchase these products at a substantially lower price
than any other retail brand. Federal excise tax of
$10.07/carton will still be collected per Federal
law.
Wincon is currently operating in the Nevada
market, and has immediate plans to service its 93 active accounts
in California using tobacco sourced from Washington State, New
York, Kentucky and Canada. Presently, within California,
Wincon is one of the only distributors with the necessary stamps,
permits, etc. to conduct tribe-to-tribe tobacco
trade.
Some of Wincon’s current brands include Monarch,
Market, King Mountain, Gator, Buffalo and Smokin’ Joes cigarettes.
An existing partnership with K&B Trucking Lines will allow for
seamless timely delivery of product from the company’s distribution
centers.
Because of the favorable tribal tax environment
and considering the price volatility of tobacco sales, Wincon’s
resale customers can expect a price point of $19/carton, which is
significantly lower than other retail vendors, and will maintain
high profit margins.
Conservative growth into
the three initial target market areas in California could put the
gross annual revenue at just over US$15 million through the end of
2017.
Wincon’s management has access to Tribal networks
outside of the Western United States, and therefore once the
existing 93 California accounts have been addressed, the joint
venture plans to proceed with phase two of expansion by heading to
the Northeast and Midwest.
Sincerely,
Jacob
Thomas
CEO / Chairman of the Board
ABOUT
FULL ALLIANCE GROUP
Full Alliance Group Inc. is a multi-faceted
company with current diverse investments in the United States,
focusing primarily on organic pod-based agriculture, acquisitions,
and CBD-based nutraceuticals. Once these strategic acquisitions are
procured and integrated into the long term objectives of the
company, Full Alliance Group will provide investment capital,
modern business practices and best-in-class management to cultivate
and mature these companies to their greatest
potential.
FORWARD-LOOKING
STATEMENTS
This shareholder update may contain a number of
forward-looking statements. Words and variations of words such as:
"expect”, "goals", “could”, "plans", "believe", “continue", "may",
"will" and similar expressions are intended to identify our
forward-looking statements, including but not limited to: our
expectation for growth, benefits from brand-building, cost savings
and margins. These
forward-looking statements are subject to a number of risks and
uncertainties, many of which are beyond our control, which could
cause our actual results to differ materially from those indicated
in our forward-looking statements. Such factors include, but are
not limited to: continued volatility of, and sharp increase in:
costs/pricing actions, increased competition, risks from operating
internationally, consumer weakness, weakness in economic conditions
and tax law changes.
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