SOUTHCORP CAPITAL, I (OTCMKTS:STHC) will produce two weight loss items for a company that will make air infomercials. The production work is expected to start within next 75-90 days. It is a significant opportunity for the company as the industry of global weight loss is growing at a fast pace and is expected to touch $206.4 billion by 2019.
As of now, the global weight loss market is valued at $148.1 billion. As per a report, almost43% of the total revenue will come from the North American Market. The company is building a new factory in Indian that will solely focus on the production of weight loss products. Currently, it outsources the production tasks to external laboratories and factories.
The development plans
In February, Southcorp proposed a deal to purchase a 20,000 square foot facility located in Indiana. It wants to construct a state-of-the-art factory that supports the manufacturing of weight loss products. The new factory based in Indiana is expected to manufacture up to 50 million cans every year. The production will be supplied to Nate’s Foods Co (OTCMKTS:NHMD).
Southcorp expects to generate revenue of $25 million per year. The acquired facility also has additional five acres of space that can be used in the future for expansion of facility. After the expansion, it would be able to make 250 Million cans per year. Southcorp filed for one more property on February 17, 2015. The development work of factory is in initial stage.
SOUTHCORP CAPITAL, I (OTCMKTS:STHC), is a renowned firm that focuses on purchasing industrial, commercial and residential properties. It is an OTC traded firm that has been supported by numerous pumps in last year. In October 2014, there were five mails circulated to tout the company’s stock. On Tuesday’s trading session, Southcorp stock price declined more than 6% to close at $0.0246.