🍄 This weeks #researchshort is on $FAMI or Farmmi, its been a short squeeze candidate for the last couple of weeks which caused me to look into it a bit! 🍄
⁉️ About $FAMI ⁉️
Farmmi is a company that processes and sells agricultural products in China and abroad; it grows and markets shiitake and wood ear mushrooms and other edible fungi products, including bamboo fungi, chestnut mushroom, trumpet royale, hen of the woods, lawyer's wig, and lion's mane mushroom. It also operates Farmmi Jicai, an online store that sells edible fungi products under the Forasen and Farmmi Liangpin brands. In addition, Farmmi exports dried whole and sliced shiitake mushrooms, and dried black fungus to Israel. Through its distributors, it offers its products to restaurants, cafeterias, and local specialty stores. Farmmi also sells non-fungi agricultural products such as crabs and oranges on its online store Farmmi Liangpin Market
🇨🇳 $FAMI acquires Jiangxi Xiangbo Agriculture 🇨🇳
Farmmi and has agreed to acquire all the shares of Xiangbo for approximately RMB 70 million based on our decision to expand Farmmi's forest related business. Xiangbo's subsidiary, Yudu County Yada Forestry Co., Ltd. owns 1,4438.5 mu of economic forest in Yudu County, Ganzhou City, Jiangxi Province. Xiangbo primarily uses its acreage in the cultivation and production of Moso Bamboo, Camellia Oleifera and Chinese Fir trees. Moso Bamboo is the main source of water bamboo shoots, which are not only a delicious food but also used in the development of construction and industrial products. Camellia Oleifera is similar to olive oil and is used the production of Camellia oil, which is a popular cooking oil and used in the production and processing of other food products. Camellia oil is also a preferred beauty product as a non-greasy, moisturizer for both skin and hair, able to permeate deep into lower layers of skin. Chinese Fir trees are specimen evergreens capable of reaching 150 feet high and favored by wood processors for plywood and many other products.
The acquisition base effectively ensures the purity and quality of camellia oil, and the forest land above will also become an important raw material base for the company to sell high-quality products in the future. At the same time, as the Chinese government gradually formulates and implements policies to ultimately achieve carbon neutral, the economic forests can actively participate in Carbon-Sink Trade markets and other green markets.
-wiki
📉 $FAMI Public Offering 📉
Sept. 13, 2021
Farmmi announced the pricing of an underwritten public offering of ordinary shares and pre-funded warrants to purchase ordinary shares ("Offering"), with gross proceeds to Farmmi expected to be approximately $81 million, before deducting underwriting discounts and commissions and other estimated expenses payable by Farmmi. The Offering equates to 368,261,717 of Farmmi's ordinary shares at a price of $0.22 per share. The pre-funded warrants shall be offered at the same price per share as the ordinary shares, less the $0.0001 per share exercise price of each pre-funded warrant. The Company intends to use the net proceeds from this Offering for general corporate and working capital needs and capital expenditures. Sept. 15, 2021 Farmmi announced that it has completed an underwritten public offering of ordinary shares and pre-funded warrants to purchase ordinary shares (This is why Farmmi had such a sudden drop on the price of their shares.)
https://finance.yahoo.com/news/farmmi-inc-closes-81-million-133300536.html
💵 Farmmi Finances 💵
Total revenues increased 31.0% to $17.79 million for the six months ended March 31, 2021, as compared to $13.58 million for the six months ended March 31, 2020. The increased sales volume is mainly attributable to the recovery of economic activities in China since the end of the COVID-19 lockdown in April 2020, which led to increased customer orders. Revenue from sales of Shiitake increased 37.6% to $10.10 million for the six months ended March 31, 2021 from $7.35 million for the six months ended March 31, 2020, led by a 29.9% increase in sales volume to 768 tons from 591 tons over the same period. Revenue from sales of Mu Er increased 27.4% to $7.34 million for the six months ended March 31, 2021 from $5.76 million for the six months ended March 31, 2020, with a 17.4% increase in sales volume to 559 tons from 476 tons over the same period. Revenue from sales of other edible fungi and other agricultural products decreased 27.3% to $0.34 million for the six months ended March 31, 2021 from $0.47 million for the first six months March 31, 2020, with a 38.8% decline in sales volume to 11 tons from 18 tons over the same period.
Overall gross profit increased by 41.6% to $2.99 million for the six months ended March 31, 2021 from $2.11 million for the six months ended March 31, 2020. Gross profit from sales of Shiitake increased 60.7% to $1.69 million for the six months ended March 31, 2021 from $1.05 million for the six months ended March 31, 2020. Gross profit from sales of Mu Er increased 28.3% to $1.22 million for the six months ended March 31, 2021 from $0.95 million for the six months ended March 31, 2020. Gross profit from sales of other edible fungi and agricultural products decreased 30.8% to $0.07 million for the six months ended March 31, 2021 from $0.10 million for the six months ended March 31, 2020.Overall gross margin increased by 1.3 percentage points to 16.8% for the six months ended March 31, 2021 from 15.5% for the six months ended March 31, 2020. The increase in overall gross margin is mainly attributable to the improvement in increased gross margin of Shiitake, as a result of higher selling prices for the six months ended March 31, 2021.
Ms. Yefang Zhang, Farmmi's Chairwoman and CEO, commented, "We are very pleased with our strong revenue growth and surge in profitability. We successfully worked with our supply chain and customers to meet demand levels that were moving up and down with the COVID-19 lockdowns. Our efforts paid off and we achieved impressive growth in our core Shiitake and Mu Er businesses, as we continue to leverage our competitive advantages, including premium product quality, sought after production locations and strong supplier relationships. Importantly, we significantly strengthened our balance sheet and now have the resources to support our accelerated long-term growth strategy." Ms. Zhang continued, "Through our continued efforts to build our e-commerce platform, expand internationally, and build upon relationship with our suppliers, we expect to expand our product lines and improve our brand awareness and customer loyalty, as we meet higher customer demand levels and drive sales growth. We are stepping up our sales and marketing activities, investing in our supply chain and laying the groundwork for our long-term success with our ongoing business transformation. We announced in May that we will be leveraging more than two decades of experience in China's agriculture industry, as we build on Farmmi's core business of high quality agricultural products to grow into a comprehensive service provider for the agricultural industry chain. We took additional action in June, with a major cooperation and strategic investment announcement signaling our active expansion into the distribution network of agricultural products, which we expect will further strengthen our presence in the agricultural supply chain and open additional profit improvement opportunities. Overall, we are in a strong competitive position with considerable opportunities for revenue and profit growth, as we remain focused on building shareholder value."
https://finance.yahoo.com/news/farmmi-reports-first-half-2021-120000728.html
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