LODI, CA / ACCESSWIRE / July 6, 2017 / Full Alliance Group, Inc. (OTC PINK: 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.

SOURCE: Full Alliance Group Inc.