CITY OF INDUSTRY, California, November 1, 2017 /PRNewswire/ --
Sugarmade, Inc. (OTCQB: SGMD), today announces a realignmentof its business direction and outlines negotiations currently underway to significantly expand its business operations within the fast growing cannabis sector. The Company had entered into late stage negotiations with two companies regarding possible
"We are especially excited because the cannabis-related acquisition will be highly accretive to share value for current holders of Sugarmade. With California legalization of cannabis only about 60 days away, we are very pleased to be expanding our operations in several different ways," commented Jimmy Chan, CEO of Sugarmade. "The successful completion of this acquisition will make Sugarmade one of the largest, if not the largest, publically traded supplier to the hype-growth cannabis sector. We have already begun to make an impact on the sector through the pending introduction of BudLife™, the world's first patented storage containers for long-term cannabis storage."
Sugarmade is in late stage acquisition negotiations with a major distributor of cannabis cultivation and hydroponic supplies. Under the framework of the current negotiations, Sugarmade would acquire this privately-held entity through a combination of cash and Company common shares, with Sugarmade being the surviving entity. This distributor is currently producing in excess of $30 million per year in revenues, is growing rapidly, and is profitable.
Sugarmade will be changing its corporate strategic direction toward e-commerce marketing of innovative and disruptive brands. Over the past two years, the Company has increasingly turned toward online marketing for generation of its revenues. The CarryOutSupplies brand has grown its web presence very significantly with management holding the belief that online and e-commerce sales for its custom and generic paper products for the quick service restaurant industry will continue to expand.
Sugarmade is also in late stage acquisition negotiations with an importer of custom vanities and fixtures. This entity is a significant supplier to a major home improvement retailer and produces revenues in excess of $30 million per year. Under the framework of the current negotiations, the Company would acquire this privately held entity through a combination of cash and Company common shares. Management of Sugarmade believes there could be significant cost synergies relative to international importation, logistics, warehousing, shipping, and back office functions that can be gained through this acquisition. Sugarmade's management believes this acquisition would be highly accretive and beneficial to Sugarmade shareholders.
Sugarmade filed an important disclosure with the U.S. Securities & Exchange Commission concerning these events. The filing can be seen at: https://www.sec.gov/Archives/edgar/data/919175/000152013817000334/sgmd-20171027_8k.htm
About Sugarmade, Inc. (OTCQB: SGMD)
Sugarmade, Inc. is an E-commerce oriented product and brand marketing company investing in products and brands with disruptive potential. Sugarmade is a party to a license with Huy Fong Foods, Inc. and has an agreement with Huy Fong Foods, Inc. to use the licensed marks for the limited products and purposes permitted by the license. Seasoning Stix are protected by three issued U.S. patents, which are utilized by Sugarmade under agreement from Wyoming-based, Seasoning Stixs International, LLC. For more information on the Company's products, please visit http://www.Sugarmade.com. Information on Sriracha Seasoning Stix can be viewed at http://www.SrirachaStix.com. Information on Huy Fong Foods, Inc. can be view at http://www.huyfong.com.
About Sound Decisions Sound Decisions is a business development firm founded by Daniel Parker, a veteran of the e-commerce rapid growth startup space. Daniel brings extensive startup management experience to the space from his previous projects. Articles and podcasts: http://www.ecommercefuel.com/100x-your-business/
Future speaking events: https://ecommcon.com/ecommcon-16264265
For inquiries please contact Sugarmade at (888)982-1628 or info@SrirachaStix.com.
FORWARD-LOOKING STATEMENTS: This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "would," "could," "will" and other words of similar meaning in connection with a discussion of future operating or financial performance. Examples of forward looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.
Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others such as, but not limited to economic conditions, changes in the laws or regulations, demand for products and services of the company, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward looking statements.
Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this report.
For inquiries please contact: Sugarmade at (888) 982-1628 or info@SrirachaStix.com
SOURCE Sugarmade, Inc.
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