Shares of Biopack Environmental Solutions (OTC:BPAC) jumped nearly 36 percent today to $0.19 per share on very heavy volume of 3.5 million shares compared to its average daily volume of only about 52,000 shares. This lightly traded SmallCap stock has a 52-week range of $0.06 to $0.69 and a market cap. of $7 million. The buyers came a running today after Biopack issued fresh news this morning about a new distribution agreement in Latin America.
Biopack is a designer, manufacturer, and supplier of 100% biodegradable and compostable packaging products, is pleased to announce it has entered into an agreement with Solupack Sistemas de Embalagens Ltda (“Solupack”) for distribution in Latin America.
The distribution agreement will include the Latin American countries of Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela.
With their head office in Sao Paulo, Brazil, Solupack is an established distributor of many types of packaging products and machines throughout Latin America. They will use Biopack’s products to launch into the biodegradable and environmentally friendly packaging market.
Brazil is the world’s largest producer of sugarcane, and its related waste by-product called “Bagasse” which is the source of Biopack’s products, but has few manufacturers of packaging products using this ingredient. Brazil uses most of this waste as an energy source by burning it.
Mauro Kernkraut, a founder of Solupack, said, “Solupack is delighted to have Biopack as our new strategic partner. Biopack’s fully compostable packages represent an exceptional opportunity for us to distribute in Latin America their innovative products which are very much in tune with our philosophy to the conservation of our global environment with better packages. This partnership will strengthen and expand our presence in the region and contribute to our long-term growth objectives.” Biopack Latin America’s new website should be launched by Solupack within the next few weeks.
Gerald Lau, CEO of Biopack says, “We are extremely happy to have Solupack as our new distributor for Latin America. They have very established operations there, and are making a strong commitment to expanding their market with the sale of our products.” He continues, “Given the fact Brazil is the world’s largest producer of sugarcane and Bagasse, it is surprising that their market for Bagasse packaging is relatively underdeveloped. We believe this shows the exceptional quality of Biopacks products around the world. Latin American countries are also a huge source of all the fresh fruits and vegetables exported all year long on a global basis. The packaging needs for these producers are immense, and we look forward to penetrating this market.”
Biopack manufactures 100% biodegradable consumer packaging products from locally available sugar cane waste called Bagasse. Based in Hong Kong with manufacturing facilities in Jiangmen, China, Biopack has earned the “premium brand” label in the biodegradable packaging market in Europe. Distributed under the “Roots Biopack” trademark, Biopack’s unique line of compostable packaging is sold in 12 European countries, North America, Hong Kong, Taiwan and South Africa.
For investor inquiries and information about our comprehensive line of biodegradable packaging solutions, please visit our website at http://www.biopackenvironmental.com.
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