California Grapes International, Inc (CAGR)

[dh30067]

Wine was one of GDHI's products but they didn't sell. And Frankie's old partner was already in the wine business. So if GDHI was not profitable with many products including wine they certainly aren't going to be profitable with just wine! That's the whole point of a distributor carrying a myriad of products! And if CGI is already profitable without GDHI you don't need to purchase a distributor to distribute your wine and inccur their operating expenses in the process.. you just sell them your product at wholesale and be done! And if GDHI is profitable selling wine they wouldn't sell out to a single wine company but market themselves to many and protect their value in their network. This is why the "merger" makes zero sense from either end.

December 3, 2008
Golden Dragon Holdings, Inc. Signs Exclusive Distribution Agreement With Bodegas Regalia de Ollauri.
http://business.highbeam.com/436102/article-1G1-189993482/golden-dragon-holdings-inc-signs-exclusive-distribution
Mr. Cuenca, President, states, "We are delighted in representing such fine wines from the Rioja region of Spain. Their award-winning Crianza from Marquez de Teran and Tempranillo from Azento are exceptional wines that come from the Bodegas Regalia de Ollauri."

January 13, 2009
Golden Dragon Holdings, Inc. Exclusive Distribution Agreement With Bodegas Centro Españolas, S.A.
http://www.istockanalyst.com/article/viewiStockNews/articleid/2948832
Mr. Cuenca states, "We are proud to add Bodegas Centro Españolas to our exclusive line of fine wines and spirits for distribution in Asia. The exquisite taste and bold bouquet at a moderate price range will guarantee to exceed and satisfy the consumer in this rapidly growing market. Our 100-year-old reserve brandy will compete excellently with French Cognacs, at a superb price."

Wine distribution company-to China....
Hardly 'completely' different from what the company was before-
Calm down drama queen