What’s the connection, you may ask, between copper and cannabidiol (CBD) crystal, both of which are in the offing to be marketed by CD International Enterprises, Inc. (OTC: CDII). The Florida-based corporation recently signed contracts with suppliers of those commodities and other minerals and plans to target markets in the U.S. and within Chinese-speaking communities around the globe. The nexus in this web of distribution is the company’s logistical savvy. After a decade of shipping a variety of industrial materials around the world, CD International Enterprises knows more than a thing or two about procurement and distribution.
CDII cut its teeth in global distribution when it began sourcing iron ore and other minerals in South America for customers in China. The company established offices in Bolivia, Chile and Peru, and, by 2014, it was shipping copper concentrate from Chile and Bolivia to China. It also established a reputation as a reliable supplier of high-grade magnesium and was, at one time, operating four magnesium facilities with combined production capacity of approximately 32,000 metric tons of pure magnesium. However, the downturn in the minerals market forced a shift in strategy, with CDII applying its logistics know-how in metals to other commodities. Now, with cannabidiol-based products entering the medical mainstream, the company plans to become a major supplier of bulk CBD crystal in the U.S.
In March 2017, the company announced its entry into a multi-year distribution agreement with Zhangjianjie Shengshi Agricultural Development Company (Shengshi) for the distribution of high-grade CBD crystal in the United States. Under the deal, Shengshi will be responsible for large-scale production of CBD, which it processes from industrial hemp grown in China. From this output, up to 100 kilograms per month, or 1,200 kilograms per year, will be provided to CDII for U.S. distribution, with CDII maintaining exclusive U.S. distribution rights for an initial period of 10 years.
In April 2017, CDII signed a wholesale distribution agreement with a U.S.-based manufacturer of cannabidiol-based products. Through this agreement, CDII will purchase CBD products at a wholesale price before marketing them to the Chinese-speaking population. CDII’s new distribution partner currently markets a wide assortment of popular CBD-based products and supplements. Some popular products include Chill and Relax Gummies, a tasty selection of more than 200 flavored CBD hemp oils, Blue CBD Crystals Isolate, the Relax Extreme CBD collection, CBD shots and premium vape additives.
In May 2017, CDII announced its entry into a wholesale distribution agreement with GWR Distributors, Inc., one of the world’s leading suppliers of cannabidiol-based products derived from hemp. Under the agreement, CDII will purchase CBD capsules and concentrates, edibles and oils, isolates, syrup and terpenes and CBD for pets.
CDII hasn’t forgotten its roots, though. The company still trades in mineral ores and has struck a number of deals in recent times. In May 2017, the company announced its entry into a letter of intent with a Honduras-based company to purchase iron ore (62% to 63% Fe). Under the agreement, CDII agrees to purchase 100,000 metric tons of iron ore per month over a 12-month period, equating to a total shipment of 1.2 million metric tons over the life of the agreement. The deal, worth an estimated $84 million at current CIF China prices, also includes an option to increase monthly supply to 500,000 metric tons per month.
Also in May 2017, CDII announced its entry into a full corporate offer to purchase 5,000 tons of copper cathodes (99.99% Cu) per month from a company based in Tanzania. The contract requires CDII to purchase 5,000 metric tons of copper cathodes per month over an initial period of 12 months, leading to a total annual shipment of 60,000 metric tons. Based on London Metal Exchange (LME) futures prices, the contract of 60,000 metric tons is valued at approximately $330 million.
Soon after CDII announced its entry into a full corporate offer with a Dominican Republic-based company for the monthly purchase of 100,000 tons of metallurgical-grade bauxite. The agreement requires CDII to purchase 100,000 metric tons of bauxite per month for an initial period of 12 months, equating to a total shipment of 1.2 million metric tons. This contract is valued at approximately $37 million based on current FOB prices at Cabo Rojo, Dominican Republic.
Learn more about the company, its subsidiary, mineral trading and consulting divisions, and growing online CBD products store by going to http://www.cdii.net.
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