PALM BEACH, Florida, October 17, 2018 /PRNewswire/ --
FinancialNewsMedia.com News Commentary
Demandfor cannabis continues to outpace projections as Canada will officially commenced its legalization of recreational marijuana. According to the Cannabis Business Plan, recreational cannabis could experience annual revenues
Sugarmade, Inc. (OTCPK:SGMD) BREAKING NEWS: Sugarmade, one of the largest publicly traded hydroponics supply companies, today announces the signing of a binding Letter of Intent ("LOI") to acquire Sky Unlimited, LLC, dba Athena United (http://www.AthenaUnited.com), a California-based supplier of cannabis cultivation materials to wholesalers and large commercial cannabis cultivators. Sugarmade expects this acquisition to be highly accretive to earnings and shareholder value and thus is revising its guidance for full-year 2019 revenues to more than $70 million.
Sugarmade's revenue within the cannabis cultivation supply sector is primarily derived from online sales, whereas Sky Unlimited's revenues are mainly generated via direct sales to wholesalers and large commercial cultivation companies. Management believes that combining its focus on e-commerce with Sky Unlimited's larger commercial operator-focused business will result in strong marketing, manufacturing and logistical synergies, as well as improved margins and other corporate benefits.
"The trend in cannabis cultivation is toward the larger commercial cultivation operations, and Sky Unlimited is in the thick of that dynamic marketplace," commented Jimmy Chan, CEO of Sugarmade. "This year, Sky Unlimited and its associated operations are expected to produce in excess of $40 million in revenues with profitability and positive cash flow. This new revenue stream combined with our recently upwardly guided revenue forecast of $30 million for next year will make Sugarmade one of the largest publicly traded suppliers to the booming cannabis cultivation marketplace, with a combined revenue forecast for next year in excess of $70 million."
Sugarmade's market strategy is to cover three major areas supplies for cannabis cultivation: 1) online and e-commerce; 2) the wholesale market, which services brick and mortar retailers; and 3) large-scale commercial cultivation operations.
"As a result of successfully acquiring Sky Unlimited we anticipate revenue and growth exposure to all three of these sectors, while gaining strong cost and operational synergies. We are currently in process of additional discussions to further expand our growth goals via other acquisitions in this fast-growing market sector," stated Chan
Read this and more news for Sugarmade at: http://www.financialnewsmedia.com/news-sgmd
In other industry developments and happenings in the market this week include:
Puration Inc. (OTCPK:PURA) recently announced a podcast interview of Puration CEO Brian Shibley released by Goldman Small Cap Research. The interview provides an in-depth overview of where the CEO sees Puration in the cannabis infused beverage space as major beverage companies start to show interest and move into the market. Hear the CEO discuss the recent interest in Puration's EVERx CBD Sports Water shown by LA Libations, the key innovation partner of The Coca-Cola Company. Coca-Cola owns a minority stake in LA Libations. Also, hear the CEO discuss Puration's ongoing and developing relationship with Europa Sports Products, the leading distributor of nutritional sports supplements, sports drinks and accessories in the United States.
Medical Marijuana Inc. (OTCPK:MJNA) the first publicly traded cannabis company in the United States, yesterday announced that its subsidiary HempMeds® will be exhibiting its line of cannabidiol (CBD) hemp oil products at the Cannabis World Congress and Business Expo, taking place in Boston from Oct. 17-20. Medical Marijuana, Inc. CEO Dr. Stuart Titus will also be speaking on an expert panel at the conference discussing the evidence for medical cannabis. "As cannabis research continues to flourish in the United States and throughout the world, I am proud to be at the forefront of this conversation and help people understand the many intricate facets of the industry," Titus said. "We are proud to be a part of this important event and help spread education on cannabis and CBD."
PotNetwork Holdings Inc. (OTCPK:POTN) recently announced it has successfully filed its Form 10 registration statement with the U.S. Securities and Exchange Commission ("SEC"), which included independent third party PCAOB ("Public Company Accounting Oversight Board") auditor certification of its financial performance for all of 2017 and verification of its financial results through the first 6 months of 2018. Going forward, all such financial information will be PCAOB auditor verified. Through submission of the filing, the Company has voluntarily become subject to the full disclosure requirements of the SEC for reporting companies, and the Company must have each quarter's fiscal performance PCAOB auditor reviewed and its year-end statements fully audited by a PCAOB member firm. Now as a reporting company, PotNetwork Holdings, Inc. qualifies for uplisting to the OTCQB market tier.
GrowLife Inc. (OTCQB:PHOT) closed up 20.95% on Tuesday with a volume north of 131 million by the market close. The company also announced it has completed a transaction to acquire a majority share of EZ-CLONE Enterprises, Inc. (EZ-CLONE). EZ-CLONE is the manufacturer of multiple award-winning products specifically designed for the commercial cloning and propagation stage of indoor plant cultivation including cannabis, food, and other hydroponic farming. The transaction aligns with the Company's strategic vision of servicing the burgeoning cannabis cultivation market. "This acquisition is one of the most significant milestones for GrowLife to-date, allowing us to further expand GrowLife's product and service offering portfolio with the backing of this renowned company," said GrowLife CEO Marco Hegyi. "EZ-CLONE has become synonymous with the highest quality cloning products in the industry and has become the standard in cloning and propagation among industry leaders and experts. GrowLife's mission is to support the entire process of cannabis cultivation and help our customers to grow in the most efficient and cost-effective manner. EZ-CLONE's product line perfectly fits with our vertical commercial grow system and will provide our customers with the ultimate cultivation infrastructure from clone to harvest."
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