Farmmi expands US operations with new East Coast warehouse

LISHUI, China - Farmmi, Inc. (NASDAQ: FAMI), a supplier and distributor of agricultural products currently trading at $1.84, announced today the expansion of its logistics and warehousing operations in the United States with a new facility on the East Coast. The move signifies the company’s growth from its established West Coast presence to cover a more substantial part of the U.S. market. According to InvestingPro data, the company generated $64.13 million in revenue over the last twelve months, though it faces challenges with a weak gross profit margin of 6.04%.

The company’s U.S. subsidiary, Farmmi USA Inc., has signed a lease for a warehouse located at 1100 Randolph Road, Somerset, New Jersey. This addition to Farmmi’s distribution network is part of a strategic initiative to enhance warehousing capabilities, streamline logistics, and reduce delivery times for East Coast customers. InvestingPro analysis reveals 17 additional key insights about Farmmi’s financial position and market performance, available to subscribers.

Ms. Yefang Zhang, CEO of Farmmi, highlighted the importance of this development, stating that it strengthens the company’s competitive edge in the U.S. market and supports its long-term strategic goals. She emphasized Farmmi’s commitment to providing high-quality products and optimizing its distribution network to meet the needs of its expanding customer base. The company maintains a strong liquidity position with a current ratio of 16.1, though InvestingPro data indicates it is currently experiencing rapid cash burn.

Founded in 1998, Farmmi specializes in processing, sales, and retail of edible fungi, such as shiitake mushrooms and black fungus, as well as other agricultural commodities. The company serves global markets through both online and offline channels, though it has seen a significant revenue decline of 41.89% over the last twelve months.

The press release also included forward-looking statements regarding Farmmi’s growth prospects and future performance. These statements are subject to various risks and uncertainties that could cause actual results to differ from expectations. Farmmi cautions that these forward-looking statements are based on current assumptions and that the company does not commit to updating them unless legally required.

This expansion news is based on a press release statement from Farmmi, Inc. and does not include any speculative content about broader industry trends or impacts.

In other recent news, Farmmi, Inc. announced a 1-for-12 share consolidation approved by shareholders, which will take effect on March 17, 2025. This move aims to ensure compliance with Nasdaq Marketplace Rule 5550(a)(2) to maintain its listing. As a result of the consolidation, Farmmi’s ordinary shares will trade on a split-adjusted basis with a new CUSIP Number, G33277149. The consolidation will automatically convert every twelve existing ordinary shares into one issued and outstanding ordinary share. No fractional shares will be issued; instead, they will be redeemed by the company. This action will reduce Farmmi’s issued and outstanding ordinary shares from approximately 15 million to about 1.25 million, subject to the redemption of fractional shares. Additionally, the total number of authorized shares will decrease from 500 million to approximately 41.67 million. These developments are part of Farmmi’s ongoing efforts to align with Nasdaq’s listing requirements.

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