Sugarmade, Inc. (SGMD)

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Sugarmade Eyes Strong Revenue Growth Resulting From Hemp Provisions of U.S. Farm Bill

MONROVIA, California, December 20, 2018 /PRNewswire/ — Sugarmade, Inc. (OTC:SGMD) believes the passage of the U.S. Farm Bill, which includes specific hemp cultivation and legalization provisions creates additional revenue and investment opportunities for the Company as farmers across the country announce plans to begin or expand the cultivation of hemp.  Sugarmade provides multiple products for the cultivators and processors and is in process of bringing additional products into this marketplace.

 

The markets for industrial hemp, CBD oils and other hemp products are widely expected to explode upon implementation of the hemp provisions in the Farm Bill.  Several analysts are now forecasting that the market for hemp and CBD will exceed even the size of the booming THC marijuana market.

 

“Our vast experience in the supply of cultivation, harvesting and processing products places Sugarmade in a strong position to increase its revenue and profit outlooks as dozens of new operations prepare to come online,” commented Jimmy Chan, CEO of Sugarmade.  “Many of our current products apply directly to the industrial hemp market, which is now opening up.  Additionally, we will be marketing other products directly to this emerging market, particularly relating to post-harvest processing.  We see this an important market in which we plan to be involved.”

 

In addition to sales of hemp market related supplies, Sugarmade also holds an option to invest up to $1 million in Kentucky hemp operation, Hempistry, Inc., which recently successfully harvested its first 100 acre test crop.  Plans are currently underway to significantly increase cultivation operations for the 2019 planting season.

 

Mr. Chan continued, “We are especially pleased with the specific provisions in the Farm Bill that include legalization of cannabidiol products.  We think the inclusion of CBD into foods, beverages and other consumer products will continue to grow, creating additional markets for participants in the North American hemp industrial complex.  We believe Sugarmade is very well prepared to capitalize on these booming markets.”

 

About Sugarmade, Inc. (OTCQB: SGMD)

 

Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade’s online stores include ZenHydro.com and CarryOutSupplies.com.  For more information on the Company’s products please visit http://www.Sugarmade.com.

For inquiries please call (888)-982-1628 or info@Sugarmade.com.

 

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 call (888)-982-1628 or info@Sugarmade.com.

SOURCE Sugarmade, Inc.

 

California Cannabis Market Offers Growth for Cultivation Suppliers as Authorities Tackle Licensing Backlog

CannabisNewsWire Editorial Coverage

 

Denver CO – December 18, 2018 –  Growth in the Californian cannabis industry, currently restricted by licensing delays, is expected to accelerate over the coming months, bringing profits for suppliers of cultivation equipment.

 

  • California is one of the largest recreational cannabis markets in the world.
  • Recent delays in issuing cannabis licenses in California seem to be approaching an end.
  • Outside California, the growing global reach of the cannabis industry is drawing interest from significant international investors.

 

Sugarmade, Inc. (OTC:SGMD) (SGMD Profile) is one of the companies set to profit from this acceleration, thanks to its sales of hydroponic equipment to cannabis cultivators. Tilray, Inc. (NASDAQ:TLRY) is looking forward to a presence in Latin America after recently establishing a subsidiary in Chile. Canopy Growth Corp. (NYSE:CGC) (TSX:WEED) has drawn billions of dollars in investment from a beverage giant, while Cronos Group, Inc. (NASDAQ:CRON) (TSX:CRON) has benefited from a similar move from big tobacco as those industries’ big names look to get involved in cannabis. Meanwhile, Aphria (NYSE:APHA) (TSX:APHA) is expanding its reach beyond North America through an acquisition in Germany.

 

To view an infographic of this editorial, click here.

 

California’s Pot Power

 

When California passed the Adult Use of Marijuana Act in November 2016, the legislation sent waves through the American cannabis industry. The legalization of recreational cannabis in the most populous U.S. state offered the potential for a huge and lucrative market. The first U.S. state to legalize medical cannabis, California had been near the forefront of the cannabis industry for more than 20 years.

 

With an estimated population of nearly 40 million people and an electorate that had voted by a 57 percent majority in favor of legalization, California clearly has huge potential for the industry. Not only cannabis growers and retailers but also the companies supporting and supplying them are set to benefit from the change. Recreational cannabis sales became legal in January 2018, and businesses have moved to make the most of the new market. Licensing has caused delays for many companies, but if authorities can tackle the backlog, there’s potential for an enormously influential industry to spring up.

 

Cultivation Operations

 

The cannabis industry doesn’t operate in isolation. Companies such as Sugarmade, Inc. (OTC:SGMD), which has become established in other industries, are now moving into this field.

 

Sugarmade is a product and brand marketing company that invests in products and brands with disruptive potential. Building upon experience in food, restaurant supplies and packaging, it has recently made two big moves in the cannabis sector. These are natural moves for companies aiming to expand their customer base in consumable products, applying existing skills and experience to a relatively new market, and the approach appears to be working well for the company.

 

Sugarmade’s most recent move in hemp is the investment of $1 million in Hempistry Inc., a Nevada corporation catering to the growing demand for the pharmacologically active CBD component of hemp. The investment is a bold move that comes just as hemp cultivation is on the verge of federal legalization

 

Hydroponic equipment is vital to the cannabis industry. It allows producers to cultivate plants in secure, tightly controlled indoor facilities where they can ensure the product is healthy and its potency is appropriate to their market. Without the hydroponics industry, there is no cannabis industry; thus, the rise of cannabis has been hydroponics’ gain.

 

As a large hydroponics company whose reach includes its ZenHydro brand, Sugarmade could become a leading supplier to California’s cannabis industry. As companies expand to serve the growing market and new companies emerge alongside them, they will depend on cultivation supplies, and Sugarmade is forecasting accelerating revenue growth as a result.

 

Licensing Issues

 

Currently, the biggest obstacle to this growth is the ability of California authorities to license cannabis cultivation applicants.

 

As with any drug requiring a doctor’s prescription, cannabis should be properly regulated. California’s laws include provisions for this, requiring commercial growers to apply for cultivation licenses to operate within the state. However, because federal law still prohibits the cannabis industry, it is difficult for cannabis companies to operate across state lines. Therefore, those aiming to sell cannabis in California will need to grow the crop within the geographic bounds of the market.

 

Companies applying to grow cannabis in California have encountered a fluid response over the past few months. Recreational legalization encouraged a rush of license applications as approved medical cannabis companies sought the ability to supply the new market and entrepreneurs sought to seize their own piece of the pie. This inevitably put a strain on the system, as happens after any big change. Applications started piling up. According to state licensing agency CalCannabis, an estimated 2,547 cultivation licenses were under review by the beginning of November, with little sign that the backlog was moving.

 

This slow movement has delayed expansion for the whole industry, including hydroponics suppliers such as Sugarmade. Without a license, the equipment to grow cannabis is of no use to a dedicated cultivator. A lack of licenses deters investment in the associated hardware and supplies. Until the industry is fully up and running, the consumer market won’t have time to fully expand.

 

Light at the End of the Tunnel

 

Fortunately, the problems appear to be nearing an end, spurred on by a crisis point.

 

Around 6,000 licenses have been issued on a temporary basis, with 1,054 of them about to expire. Given the further disruption to the industry that problem could cause, authorities seem to be speeding up their efforts to tackle the backlog. The licensing agency has started issuing annual permits, and industry insiders expect this process to accelerate over the next few weeks. More licenses will mean more companies cultivating cannabis, which will mean more purchases from cultivation suppliers such as Sugarmade.

 

Jimmy Chan, the CEO of Sugarmade, said: “Our customers, especially those in Santa Barbara, Monterey and Humbolt counties, the three most prolific cultivation areas in California, are indicating to us they too are expecting the permitting process to break free shortly, and they are thus informing us of their plans to accelerate purchasing. We believe this will add to our already strong expected growth rate. We are seeing the cultivation market increasingly shift to the larger commercial growers and we view these operators as our prime markets. We believe, especially considering the recently announced acquisition of Sky Unlimited, LLC, which focuses primarily on these large cultivation operators, we are optimally positioned to meet this expected wave of purchasing of cultivation supplies.”

 

The Bigger Cannabis Picture

 

California’s huge potential and brief licensing crisis are only small details in the much bigger picture of the global cannabis industry.

 

Tilray, Inc. (NASDAQ:TLRY) is a pioneer in the cultivation, production and distribution of cannabis and cannabis-derived chemicals, as well as in research to improve understanding of them. Through affiliates in Canada, Australia, New Zealand, Germany and Portugal, Tilray operates across multiple continents, engaging with researchers, doctors and consumers. It recently made a move into Latin America through its new subsidiary Tilray Latin America SpA. Licensed by the Chilean government to produce medical cannabis, Tilray is using Chile as a base to prepare for sales into other Latin American markets, as local laws allow.

 

One of the most important trends in the cannabis industry is the increasing interest outside companies exhibit in getting involved. Alcohol and tobacco companies have been sniffing around the big players of cannabis, which are relative small fry by comparison and therefore can easily be given a proportionately significant boost. The best-known example is Constellation Brands’ investment of $4 billion in Canopy Growth Corp. (NYSE:CGC) (TSX:WEED), showing Constellation’s interest in the future of the cannabis market. The involvement of big alcohol and tobacco companies, with their experience in lobbying and public relations for recreational drugs, will put more momentum behind the global move towards legalization.

 

Like Tilray, Cronos Group, Inc. (NASDAQ:CRON) (TSX:CRON) is making the most of the growing global market for cannabis, doing business in North America, Latin America, Europe, Australia and Israel. The company has recently secured C$2.4 billion in investment from Altria Group, the owners of Phillip Morris USA. A move in line with Constellation’s investment in Canopy Growth, this will see a strengthening of ties between big tobacco and cannabis. As tobacco companies see their profits hit by anti-smoking campaigns, cannabis offers a promising alternative, and their presence provides a promising source of finance for cannabis.

 

Aphria (NYSE:APHA) (TSX:APHA), another North American company with investments in Latin America, has recently announced a move to strengthen its presence in Europe through the acquisition of CC Pharma. CC Pharma is a leading distributor of pharmaceuticals to Germany pharmacies that will provide Aphria with a useful channel to get its products onto German shelves.

 

The cannabis market is becoming a truly global one, with sales on nearly every continent and investment from huge multinationals. Even so, some regions remain particularly crucial, and an accelerated pace of licensing in California will bring huge benefits to the industry.

 

For more information about Sugarmade, please visit Sugarmade, Inc. (OTC:SGMD).

 

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

 

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Sugarmade Eyes Rapid Growth as California Expected to Begin Mass “Green Lighting” of Annual Cannabis Cultivation Applications

MONROVIA, California, December 6, 2018 – Sugarmade, Inc. (OTC:SGMD) today makes comments on its expected revenue growth in hydroponic related supplies considering the rapidly changing California cannabis cultivation licensing situation.  As a result of the expected mass “Green Lighting” of annual cultivation permits, Sugarmade is expecting accelerating revenue growth as large cultivation operations begin purchasing cultivation supplies after receiving annual permits.

 

The situation relative to annual licenses required for legal cannabis cultivation in California remains fluid, but is expected to change rapidly over the coming weeks.  As of the beginning of November 2018, there were approximately 2,547 annual cultivation licenses under review according to CalCannabis, the licensing agency within the state, with very little movement toward clearing the backlog.  The approximately 6,000 licenses issued by the three California licensing agencies have been granted on only a temporary basis with expiration expected, according to California law, in January.

 

The state of California currently lists 1,054 temporary cultivation licenses as “About the Expire”.   This uncertain status has caused many license holders to hold off on purchasing cultivation supplies.  The California licensing agency has now begun issuing a limited number of annual permits and Sugarmade is expecting significant acceleration in licensing over the coming weeks, which the Company believes will result in a wave of purchasing of cultivation supplies.

 

Jimmy Chan, CEO of Sugarmade commented, “Our customers, especially those in Santa Barbara, Monterey and Humbolt counties, the three most prolific cultivation areas in California, are indicating to us they too are expecting the permitting process to break free shortly and they are thus informing us of their plans to accelerate purchasing.  We believe this will add to our already strong expected growth rate.  We are seeing the cultivation market increasingly shift to the larger commercial growers and we view these operators as our prime markets.  We believe, especially considering the recently announced acquisition of Sky Unlimited, LLC, which focuses primarily on these large cultivation operators, we are optimally positioned to meet this expected wave of purchasing cultivation supplies.”

 

Sugarmade recently reiterated its annualized revenue guidance for calendar 2019 of $70 million, representing significant growth over previous annual periods.

 

The list of “About to Expire” California cannabis cultivation licenses can be viewed on the California Department of Agriculture’s site at the following link:

 

https://aca6.accela.com/CALCANNABIS/Cap/CapHome.aspx?module=Licenses

 

About Sugarmade, Inc. (OTCQB: SGMD)

Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade’s online stores include ZenHydro.com and CarryOutSupplies.com.  For more information on the Company’s products please visit http://www.Sugarmade.com.

 

For inquiries please call (888)-982-1628 or info@Sugarmade.com.

 

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 call (888)-982-1628 or info@Sugarmade.com.

SOURCE Sugarmade, Inc.

 

Hemp Industry Sees Profitable Harvest as Farm Bill Approaches Finale

CannabisNewsWire Editorial Coverage

 

Denver CO – December 4, 2018 – With the end in sight for the 2018 U.S. Farm Bill, which contains provisions likely to grant hemp full agricultural legalization, and revenues from existing hemp products rising, hemp farmers are seeing reasons for excitement this fall.

 

  • The Farm Bill is set to finally pass through Congress in the near future.
  • Predicted hemp revenues for the next few years are soaring.
  • Hemp is doing particularly well in states with supportive politicians, such as Kentucky.

 

Sugarmade, Inc. (OTC:SGMD) (SGMD Profile) has made the most of this opportunity through investment in Hempistry, a hemp cultivator with big plans for expansion. The popularity of cannabidiol (CBD) products means that hemp may soon surpass the value of other cannabis products, which is providing strong profits for companies such as Tilray, Inc. (NASDAQ:TLRY). This popularity will likely to lead to growth in the food and beverage industry, one reason why Canopy Growth Corp. (NYSE:CGC) (TSX:WEED) has received substantial investment from that sector. HEXO Corp. (OTC:HYYDF) (TSX:HEXO) plans to increase its 310,000 square feet of cannabis cultivation space to almost 1 million square feet by the end of the year. Meanwhile, Aphria (NYSE:APHA) (TSX:APHA) is developing new products to tap into Canada’s lucrative market.

 

To view an infographic of this editorial, click here.

 

Hemp Rides High on Wave of Change

 

Four years ago, it would have been virtually impossible to talk about a hemp industry in the United States. As a variety of the cannabis plant, hemp had been made illegal under legislation decades ago despite not containing significant quantities of the active drug compound that gets marijuana users high from other distinct forms of cannabis. State level reforms had done nothing to protect hemp on a federal level, and the plant was struggling to make its mark.

 

All that changed with the 2014 Farm Bill, which allowed for the cultivation of hemp at trial and research sites. Together with the emergence of laws in more cannabis-friendly states, this has allowed the industry to take off in a big way. Hemp is being put forward as a potential cash crop to be used in producing fibers, medicines and health foods. Farmers are starting to see big profits from hemp crops. And with fresh legislation on the verge of passing in Washington, the industry appears set for a surge in growth.

 

Fighting over the Farm Bill

 

For companies invested in hemp, such as Sugarmade, Inc. (OTC: SGMD), one piece of legislation has dominated the political landscape over the past year — the 2018 Farm Bill.

 

Farm bills are pieces of legislation passed by Congress every few years as the previous iterations expire. They set out government policies on issues of agriculture and food supply. As complicated pieces of law covering multiple topics, these bills are much haggled over by both houses, and the 2018 bill has been no exception. Divisions over food stamp rules and immigration policy has held up its passage for months.

 

This year’s farm bill has Sugarmade’s attention because of a section that will remove quality hemp production from drug enforcement restrictions nationwide. Backed by Senate Majority Leader Mitch McConnell, this has been one of the less controversial parts of the bill despite hemp’s illicit history. The possibility of offering struggling farmers a valuable cash crop is one that both parties can get behind.

 

Unfortunately, this important change for hemp was left in limbo thanks to the other battles over the bill. But now discussions in committee are finally moving towards a finished bill that unifies the House and Senate versions, as the lame duck Republican house majority tries to pass a law it can stomach before control of a dominant voting bloc passes to the Democrats.

 

Bottom line: the legalization of hemp cultivation could be just days away.

 

Hemp Heads into the Mainstream

 

This political change has been facilitated by shifting public attitudes towards hemp. The plant is increasingly popular in food and body care products and has been singled out as one of the top trends for next year by Whole Food Market. That’s good news for Sugarmade, which recently launched its own industrial hemp initiative, as it means there’s not just a consumer market for hemp-derived products but also the political will to make production easier.

 

These shifts in attitudes are reflected in the varying fortunes of states as well, with some receiving far stronger support for their hemp industry than others. For example, Kentucky’s hemp industry is bolstered by advocacy from the state’s politicians. Congressman James Comer has been outspoken in supporting the state’s industry and in pushing to get the Farm Bill approved.

 

Sugarmade is among the companies benefiting from Kentucky’s positive attitude towards hemp. The business has invested $1 million in Kentucky hemp company Hempistry to support its high-grade hemp operation for the U.S. market. Harvest of this year’s crop has recently started, following a test harvest of samples by the Kentucky Department of Agriculture (KDA), and the company is inviting interested parties to place bids on the crop. With demand for hemp rising, Hempistry’s legally grown, CBD-rich crop is likely to be in high demand.

 

Rising Hemp Revenues

 

One of the reasons behind Sugarmade’s investment in Hempistry is the dramatic rise in revenues from hemp crops. A few years ago, no one could have predicted the popularity hemp would achieve by 2018. The crop was mostly a side note, a reminder of the days when its fibers were used to make ropes and sales. When interest in CBD started to expand, producers realized that it could be extracted from industrial hemp. By turning this interest into a separate industry, businesses could sell CBD without becoming entangled in a mass of legal and social uncertainties.

 

Companies that have made strong investments in hemp cultivation, such as Sugarmade, will gain considerably from hemp’s ascendancy, to the benefit of managers and common share investors. Jimmy Chan, CEO of Sugarmade, commented, “Demand for industrial hemp and products derived from hemp is soaring with no let up in sight.  We expect our direct investment into Hempistry to be accretive to common shareholders, and our supply agreement to be lucrative. All of us at Sugarmade see a tremendous opportunity to become a supplier to this fast-growing sector.”

 

Expanding the Hemp Harvest

 

With the hemp market growing so fast and the Farm Bill promising to make hemp farming easier, many companies are looking to expand their operations. Having just harvested 100 acres of CBD-rich hemp, Hempistry is focusing on achieving a 10-fold increase in its acreage next year, which would make it one of the largest hemp cultivators in North America.

 

This expansion is happening alongside that of companies in the related cannabis sector. In Canada, recreational legalization has been big news for companies such as Tilray, Inc. (NASDAQ:TLRY), one of the largest cultivation companies in the country. A leader in research, production and distribution, Tilray has seen staggering financial growth over the past year, with an 85 percent rise in revenue during the third quarter and a 78.9 percent rise for the year to date. Legal and social changes have created the space for a substantial new industry to flourish across North America and beyond, bringing in big bucks for the companies that pioneered the sector.

 

Growth into the beverage and whole food markets is a likely next step for many hemp and cannabis companies, and big players on the inside of those industries have started to take note. Constellation Brands, a leading American beverage manufacturer, has invested billions of dollars in Canopy Growth Corp. (NYSE:CGC) (TSX:WEED), one of the largest cannabis growers in Canada. Canopy Growth is relatively small fry compared to the power of Constellation Brands, but the funds such a corporate giant can spare make a big difference in an emerging industry. The result is likely to be the development and marketing of CBD-infused foods and drinks, pushing the industry into places it hasn’t previously reached.

 

HEXO Corp. (OTCPK:HYYDF) (TSX:HEXO) produces cannabis through its Hydropothecary brand and recently announced plans to develop nonalcoholic, cannabis-infused beverages with Molson Coors Canada. This joint venture with one of the world’s biggest beer makers is a significant move to position HEXO in the burgeoning cannabis-infused drinks market. The company also announced that it has closed on the acquisition of its first major facility outside of Quebec.

 

Aphria (NYSE:APHA) (TSX:APHA) has also seen rising revenues and profits since 2016, thanks to the growth of this innovation-led market. It recently announced a collaboration with Perennial, Inc., to develop products for the Canadian market, a critical region for any company looking to expand beyond the United States.

 

With hemp revenues on the rise and politicians about to ease the way for hemp farmers, this is a sector that’s likely to keep growing in strength for years to come.

 

For more information about Sugarmade, please visit Sugarmade, Inc. (OTC:SGMD).

 

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

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DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with CNW or any company mentioned herein. The commentary, views and opinions expressed in this release by CNW are solely those of CNW and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW and FNM for any investment decisions by their readers or subscribers. CNW and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

 

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

 

CNW & FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

 

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.  The forward-looking statements in this release are made as of the date hereof and CNW and FNM undertake no obligation to update such statements.

 

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Cannabis Boom Fuels Mergers and Acquisitions in Hydroponics and Beyond

Denver CO – November 27, 2018 – The rapid growth of the cannabis sector is pushing companies to innovate expansion strategies.

 

  • Among the companies affected are hydroponics suppliers, which sell vital equipment to cultivators.
  • Hydroponics companies, like others in cannabis, are using mergers and acquisitions to benefit from a bullish market.
  • A recent trade show in Las Vegas saw companies on the hunt for future acquisitions.
  • Other companies are seeking outside investment or partnerships to increase their presence.

 

Hydroponics supplier Sugarmade, Inc. (OTC:SGMD) (SGMD Profile) has leaned into the current trend for mergers, with a big acquisition and open plans for future growth. Tilray, Inc. (NASDAQ:TLRY) is focusing on research and design, using public offerings to finance this work. Canopy Growth Corp. (NYSE:CGC) (TSX:WEED) has gained $4 billion in investment from a beverage company, an investment some believe will lead to a takeover. Both Cronos Group, Inc. (NASDAQ:CRON) (TSX:CRON) and Aphria (NYSE: APHA) (TSX: APHA) are relying on diverse strategies, including external partnerships, as they look to grow and succeed in the cannabis sector.

 

To view an infographic of this editorial, click here.

 

The Industry Behind the Industry

 

The cannabis industry is experiencing a period of staggering growth, with commentators predicting that it will reach a global value of over $146 billion by the end of 2025. With so much of the industry based on indoor cultivation, hydroponics companies that provide the equipment and nutrients needed to cultivate cannabis have also seen significant growth. As cannabis cultivation increases, so does demand for hydroponics products, so that the fates of the two industries are increasingly tied together.

 

Given their close relationship, it’s not surprising to see patterns in the broader cannabis sector reflected in the hydroponics industry. A recent surge of mergers and acquisitions among cannabis companies includes a number of moves involving hydroponics companies as players within the industry seek growth while outsiders look for a way in. With a big cannabis trade show coming up in Las Vegas, executives from hydroponics companies will be eyeing up the competition and contemplating who they might buy next.

 

Mergers, Acquisitions and Hydroponics

 

Hydroponics companies such as Sugarmade, Inc. (OTC:SGMD) are essential to the cannabis industry.

 

While cannabis can be grown outdoors, almost everything about the current industry drives producers away from this method. Indoor facilities are more secure, an important factor when producing a high-value, high-demand crop prized by criminals. Indoor cultivation also provides far greater control over the conditions in which the cannabis grows, as well as over the quality of the plants grown. Lighting, water, nutrients and temperature all affect the final outcome of the plants, including the quantity of active ingredients in them. High-quality hydroponic equipment, like that supplied by Sugarmade, gives growers control over the forces affecting their cannabis crop.

 

This control is becoming increasingly important as the cannabis market grows. Customers may be more forgiving of varying quality when companies are small or their product is hard to obtain. But as companies grow and supplies become more consistent, people expect consistency and quality — things that are harder to provide without hydroponics.

 

The growing number of companies in the sector also means that competition for customers is growing. Companies are racing to create crops with higher dosages of tetrahydrocannabinol (THC) and cannabidiol (CBD), the most significant active ingredients in cannabis. The more powerful the plant, the more customers will return, creating a strong brand loyalty. Again, hydroponics can be an essential piece of this success.

 

Demand for hydroponics has led to swift growth for Sugarmade, which expects 500 percent growth in revenue for the fiscal year ending in 2019. One of the ways in which Sugarmade is meeting growing demand and achieving these impressive results is through acquisitions.

 

Mergers and acquisitions are an obvious route to growth for companies in a maturing sector, and in the past year, that’s what many cannabis companies have chosen to do. The first half of 2018 saw 145 mergers and acquisitions in the sector, compared with 79 for the same period the previous year. Some of the pioneers who created cannabis startups in the early days of the industry are cashing out, making way for a field of larger, established companies.

 

Now caught up in the wider patterns of the cannabis market, hydroponics is heading down the same path. With its latest acquisition of Sky Unlimited LLC, Sugarmade has been one of the leaders in this trend. The cash and shares deal, worth $40 million, will give Sugarmade control of AthenaUnited.com, an online outlet providing a range of hydroponic equipment.

 

“This acquisition will further boost our already very rapid growth rate and is expected to be high accretive to common shareholder value,” said Sugarmade CEO Jimmy Chan. “Sky Unlimited and Athena are complementary to our existing business operations, allowing us to not only increase our emphasis on brands but also to diversify our revenue streams to now include the larger commercial cultivation operations.”

 

Cannabis Goes to Vegas

 

Sugarmade was on the hunt for more acquisitions as its team headed to Las Vegas for MJBizCon.

 

One of the cannabis industry’s largest trade shows, MJBizCon took place November 14–16 at the Las Vegas Convention Center. Investors, entrepreneurs and professionals from across the sector headed to Vegas for three days of talks, meetings and the sort of networking that dominates any trade show.

 

This year’s show had a record number of attendees and exhibitors, reflecting the huge growth that the industry has seen. Some 25,000 attendees met up and discussed topics such as the latest industry trends and how to navigate the difficult waters of regulatory compliance.

 

One  prominent item on the agenda was the move by bigger players into the cannabis market. Beverage and tobacco companies are eyeing cannabis as an alternative revenue stream, with some striking early partnerships with cannabis businesses. To survive in the face of these big money competitors, businesses will have to grow — one of the motivations behind Sugarmade’s acquisition strategy. There’s still space for small fish in the cannabis pond right now, but that space is shrinking.

 

MJBizCon provides fertile territory to lay the groundwork for acquisitions. There, companies can make contacts, seek investments and demonstrate their value. It’s a perfect venue to attract acquisition targets and start negotiations.

 

So it was a full-press court for Sugarmade at the event, as the company set out to continue its successful growth strategy. Though this year’s moves have already given it a competitive edge, Sugarmade is always looking to strengthen its foothold and further establish its position as an industry presence.

 

“Over the past year, we have significantly enhanced our operational staff and our internal systems preparing for our rapid growth,” Chan said in a recent statement. “With these changes, we believe we are optimally sized, but we want to ensure we are able to manage our aggressively planned growth rate.”

 

Big Moves for Big Profits

 

Other companies are also making bold moves to profit from the growth of the cannabis sector.

 

While expansion is critical to surviving in this fast-changing environment, mergers and acquisitions aren’t the only answer. Tilray, Inc. (NASDAQ:TLRY) is instead focusing on its well-developed research and design program to place it ahead of competitors. A leading medical marijuana company, Tilray has established a prominent position in the North American healthcare market. But it’s also looking beyond the United States and Canada as the cannabis industry goes increasingly global. With customers on five continents, Tilray has become an international cannabis business, and one still set on expansion. The company is using its public offerings in the United States and Canada to gain additional finance that will fund ongoing growth.

 

Canopy Growth Corp. (NYSE:CGC) (TSX:WEED), one of the biggest cannabis companies in Canada, is financing its expansion through a connection outside the industry. The company struck a deal with Constellation Brands, the major U.S. beverage company behind brands such as Corona. The deal has seen Constellation acquire more than a third of the shares in Canopy Growth in return for $4 billion in investment. It’s the biggest move so far by outside businesses into the cannabis sector and likely an omen of things to come. Many are predicting that this will lead to Canopy Growth’s eventual absorption under the Constellation umbrella, once cannabis becomes a big enough market to deserve more of the beverage giant’s attention.

 

Growth in the industry has been good for Cronos Group, Inc. (NASDAQ:CRON) (TSX:CRON), whose revenues were up 186 percent in its third-quarter reporting this year. Increased cultivation, a partnership with Ginkgo Bioworks on cultured cannabinoids and a move into Latin America are all part of the company’s announced plans to continue its expansion. By following a diverse range of growth tactics, Cronos is solidifying its position as a significant international player.

 

Collaboration with other companies is also part of the strategy for Aphria (NYSE:APHA) (TSX:APHA). The company has formed a joint venture with Perennial, Inc., to develop products for the Canadian cannabis market, currently one of the most significant cannabis markets in the world. Such collaborations are allowing companies to achieve more together than they could alone and perhaps survive in the face of larger competitors.

 

With the cannabis industry growing at a dramatic rate, both cultivators and the companies that supply them will have to find ways to increase their impact if they want to beat the competition.

 

For more information about Sugarmade, please visit Sugarmade, Inc. (OTC:SGMD).

 

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

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The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

 

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Hydroponics Increasingly Key as Booming Cannabis Sector Goes to Next Level

Denver, Colorado  – November 14, 2018 – With Canada’s decision to decriminalize cannabis nationwide and the 2018 U.S. Farm Bill’s provision to potentially make industrial hemp and hemp-derived cannabidiol (CBD) legal nationwide, the cannabis CBD product sector is gaining a strong foundation.

 

  • Analysts expect runaway growth in the cannabis and CBD markets.
  • Industry is scaling up amid regulatory reform.
  • Underlying growth metrics are bullish for hydroponics suppliers and cultivators alike.
  • Branding and marketing are increasingly important and tied to quality control.

 

Numerous interests stand to benefit as the cannabis sector begins to hit its stride, ranging from cannabinoid biopharma developers to cultivators with rapidly expanding acreage footprints. Pick-and-shovel plays such as hydroponics supplier Sugarmade, Inc. (OTC:SGMD) (SGMD Profile) could be some of the biggest winners, quietly supplying tons of hardware to a variety of end users without having to jump through the all the legal hoops. Tilray, Inc. (NASDAQ:TLRY), one of the first companies licensed to produce medical cannabis as dried flower in Canada, has quickly become known for its full-spectrum cold-extracted cannabinoids with clearly indicated tetrahydrocannabinol (THC) and CBD potencies. Canopy Growth Corporation (NYSE:CGC) (TSX:WEED) has parlayed its leadership in cannabis and hemp with dried, oil and softgel capsule products into a landmark $4 billion investment from beer, wine and spirits major Constellation Brands, Inc. Cronos Group, Inc. (NASDAQ:CRON) (TSX:CRON), which operates two wholly owned Canada-licensed producers, is making its presence felt across five continents. And Aphria Inc. (NYSE:APHA) (TSX:APHA) is also making serious waves as a globally minded cannabis producer, having just recently been approved for uplisting to the New York Stock Exchange.

 

To view an infographic of this editorial, click here.

 

Historic Market Forces Create a Perfect Storm

 

After more than eight decades of prohibition, cannabis has gone from a black market to a tax revenue-generating multibillion-dollar industry in a handful of years. It is an industry nipping at the market share heels of sectors like alcoholic beverages, food and drink, supplements and now even biopharmaceuticals. The market for just one of over 100 different cannabinoids, the non-psychoactive CBD, was recently projected to break $22 billion by 2022. CBD alone could have “profound impacts” across the consumer packaged goods (CPG) and pharma industries according to Brightfield Group, potentially outpacing the broader cannabis market combined. It would be a major boon to the U.S. market if industrial hemp and CBD become legal under the latest Farm Bill.

 

Recent analysis in a report from Amadee & Company cites baseline market metrics such as over 37 million people in the United States using cannabis (both legally and illicitly) as contributing to a North American market worth over $41 billion this year, which is on track to hit $95 billion by 2026. The more conservative figures from Arcview Market Research and its research partner BDS Analytics are the $9.2 billion in sales seen in 2017, and a projection of $47.3 billion within 10 years. Either way, investors are looking at some low-hanging CAGR fruit, and the sector as a whole has scaled up enough that it is now seemingly much easier to pick winners that can thrive, regardless of potential governmental policy drift.

 

Many End Markets – One Stop Shop for Hydro Hardware

 

Sugarmade, Inc. (OTC: SGMD), headquartered in northeastern Los Angeles County on the edge of the Angeles National Forest, has already established a formidable presence in the hydroponics supply market with brands such as ZenHydro.com, CarryOutSupplies.com and BudLife. The company also recently launched a massive new $1 million initiative to cement a foundational position in the emerging U.S. industrial hemp and CBD market through an investment in privately held Hempistry, Inc., a Kentucky-based farmer (23,000 acres) of an ultra-rich CBD strain of hemp.

 

Hydroponics has rapidly emerged as the dominant strain in the cannabis cultivation industry when it comes to medical cannabis, or products that want to emphasize stringent environmental cultivation controls and overall consistency. The KD Market Insights report projects a six-year CAGR of 20.7 percent, as a $5.22 billion 2017 hydroponics market grows to $13.84 billion in 2023. According to another report, cannabis cultivation will be a major driver of sector growth, with just the U.S. hydroponics market set to clock in at 20.3 percent CAGR from 2018 to 2025, hitting around $3.7 billion.

 

These are significant advantages for SGMD as the company pursues its binding definitive agreement to acquire Nevada-based Sky Unlimited, LLC, which has developed a solid reputation throughout the full spectrum of cultivation markets. Its robust AthenaUnited.com website lists everything from advanced lighting systems such as Hortilux lamps and ballasts to complete hydroponics kits such as the AeroFlo 60 aeroponic system from General Hydroponics, which super-oxygenates the nutrient solution. The AeroFlo line is a great example of a brand that growers, academics and researchers alike have praised for delivering consistently hearty growth rates and yields. Consumers from various cultivation industries have come to trust that they can find the best environmental control systems and cutting-edge nutrients, as well as plant care and more general gardening supplies on the site.

 

Ready to Launch

 

Sugarmade will retain all employees and completely assume all operations and liabilities via the acquisition. The company anticipates that the Sky Unlimited deal will be highly accretive for shareholders and has further increased the previous 500 percent annual revenue growth projection made back in July, of $30 million during 2019, to a whopping $70 million. This handsome increase owes a lot to how easily integrated the parallel business lines of Sky Unlimited and Athena are to SGMD’s existing model, as well as the extent to which the deal will allow Sugarmade to not only access the larger commercial cultivation market more directly but also enhance its emphasis on brands in a market where brand loyalty still means a great deal.

 

Scheduled for January 2019, the deal is subject to an extensive audit of the Sky Unlimited operations, but confidence is high that this latest acquisitive foray by Sugarmade will spell share price appreciation gold for the company’s shareholders. In fact, things are apparently looking so good overall for the company that management has begun positioning for a potential NASDAQ uplisting, tapping the requisite legal team to expedite the process.

 

Symbiosis amid Competition

 

The broader market is set up nicely for SGMD to take advantage of, but the reality is more symbiotic than predatory.

 

Tilray, Inc. (NASDAQ:TLRY) was the first company to legally export medical cannabis from North America to Europe, Australia and New Zealand. One of the top names in both cultivation and research, Tilray is on deck to report Q3 financials this Nov. 13 after a strong quarter in which the company successfully closed a $450 million private placement funding run with qualified institutional buyers. The company is one of the pioneers in clear labeling of THC and CBD concentrations and has a public-facing dedication to compliant and effective products that lead the industry by example.

 

Canopy Growth Corporation (NYSE:CGC) (TSX:WEED) prides itself on the highest quality cannabis, whether it is ultimately distributed as dried flower, oils and concentrates, or precisely formulated softgels. The company has a strong hand in industrial hemp for producing CBD, and now that alcoholic drinks giant Constellation Brands (which has over 100 brands to its name) recently closed its $4 billion investment in the company, Canopy is poised to strike hard and fast across the more than 30 countries worldwide that are in the process of advancing some form of permissible cannabis regulation for adult use or medicinal purposes.

 

Cronos Group, Inc. (NASDAQ:CRON) (TSX:CRON) is increasingly a global player, with operations in Canada, Colombia, Germany, Poland, Israel and Australia. The company launched its second recreational cannabis brand this year and has two wholly owned Canada-licensed producers to its name, as well as a 21.5 percent stake in British Columbia-based Whistler Medical Marijuana Company, which is licensed to produce and sell medical marijuana and cannabis oil.

 

When Aphria Inc. (NYSE:APHA) (TSX:APHA) uplisted from the OTCQB to the NYSE, it was not just big news for the company but for the cannabis industry and smallcap markets as a whole. Aphria has seen an impressive rise from a relatively small player to a true global leader in cannabis. The company’s rigorous study of the end-user market and ingenious development of a variety of brands to suit every buyer segment has delivered bottom-line results across the company’s entire line of capsules, oral solutions, oil syringes and single-unit vaporizer cartridges.

 

Once-in-a-lifetime Early-adopter Opportunity

 

As attitudes and regulations open up the global market for the end products being developed in the cannabis market, from commercial drinks containing CBD to lab-grown cannabinoid biopharma indications, some of these smaller companies are starting to look to many analysts like potential all-stars. Differentiating factors such as brand presence, product execution and market access/penetration are important analytical vectors. However, key capabilities such as being a picks-and-shovels supplier are of particular note, whether one is talking about hydroponics hardware for production or producing the raw cannabis that other companies rely on.

 

For more information about Sugarmade, please visit Sugarmade, Inc. (OTC:SGMD).

 

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

 

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with CNW or any company mentioned herein. The commentary, views and opinions expressed in this release by CNW are solely those of CNW and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW and FNM for any investment decisions by their readers or subscribers. CNW and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

 

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

 

CNW & FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

 

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.  The forward-looking statements in this release are made as of the date hereof and CNW and FNM undertake no obligation to update such statements.

 

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Source:  CannabisNewsWire

Sugarmade Executes on $40 Million Definitive Agreement to Acquire Sky Unlimited, LLC Creating Hydroponic Supply Powerhouse

MONROVIA, California, November 1, 2018 – Sugarmade, Inc. (OTCQB:SGMD) today announces the signing of a binding Definitive Agreement to acquire Sky Unlimited, LLC, which through its AthenaUnited.com operations and website offers multiple popular hydroponic brands to several growing agricultural cultivation sectors. As a result of this acquisition, Sugarmade is raising its revenue guidance for calendar 2019 from $30 million to $70 million.  Sugarmade expects  this acquisition to be highly accretive to common shareholder value.

 

Under the terms of the Definitive Agreement, Sugarmade will assume all operations, brand assets, customers and liabilities of Sky Unlimited, and will retain all employees. Sugarmade will issue the owners of Sky Unlimited ten million non- refundable shares of Sugarmade common stock in exchange for a non-shop period agreement, during which final due diligence will be completed. Subject to a successful two-year audit of the Sky Unlimited operations, Sugarmade will pay the owners a combination of cash and common shares equal to the audited revenues realized by Sky Unlimited during the 12-month period preceding the close of the transaction, which is scheduled for January of 2019. It is envisioned these payments of cash and Company shares will total $40 million, but the actual amount will be determined by the revenue performance of the acquired business operations.  The specific details of the Definitive Agreement will be outlined in a subsequent filing with the U.S. Securities & Exchange Commission over the coming days.

 

“This acquisition will further boost our already very rapid growth rate and is expected to be high accretive to common shareholder value. As a result, we are once again raising our revenue guidance for calendar 2019,” commented Sugarmade’s CEO, Jimmy Chan. “Sky Unlimited and Athena are complementary to our existing business operations allowing us to not only increase our emphasis on brands, but also to diversify our revenue streams to now include the larger commercial cultivation operations.”

 

The management teams of both companies are seeing a rapid evolution in the hydroponic and cultivation supply sector with the business moving away from the home and small operator and toward the significantly sized commercial cultivator. Sky Unlimited’s operations are well positioned against this rapidly evolving trend with most of its revenues being derived from the wholesale market and via commercial operations.

 

Mr.  Chan continued, “We are seeing a clear trend in our particular sector of the cultivation supply business.  Many of the smaller growers are being replaced by very

 

large grow operations that are purchasing large amounts of products from a limited set of suppliers. Matching this trend is Sky Unlimited as commercial accounts are now over 50% of operations and still growing. Thus, we believe we are especially well positioned via this business combination. Sky Unlimited also sees strong benefits for its existing and future customers as the increased capitalization and lowered cost of capital will allow it to further expand its brands and to accelerate the development of new products and technologies.”

 

With this acquisition and others currently being assessed by the Company, Sugarmade’s management team now believes the Company will soon be eligible for  a listing on the NASDAQ stock exchange and has thus begun the due diligence process with its legal counsel toward a NASDAQ listing application.

About Sugarmade, Inc. (OTCQB: SGMD):

Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade’s online stores include ZenHydro.com and CarryOutSupplies.com.  For more information on the Company’s products please visit http://www.Sugarmade.com.

For inquiries please call (888)-982-1628 or info@Sugarmade.com.

 

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.

 

Source:  Sugarmade, Inc.

Flow of Finance Funds Acquisitions and Investment Across the Cannabis Sector

New York, NY – October 25, 2018 – A growing market is supporting a wave of acquisitions and cross-company investments in the cannabis industry.

 

  • Significant growth in the cannabis industry is supporting a range of multimillion-dollar investments.
  • Some of these have taken the form of acquisitions, as innovators evolve into established companies.
  • Others are cross-company investments, some within the sector and some from outside.
  • Profits are coming not just from cannabis itself but from support services, with companies profiting from pick-and-shovel plays.

 

One of the companies making a pick-and-shovel play is Sugarmade, Inc. (OTC:SGMD) (SGMD Profile), which is expanding its position in cultivation supplies through acquisitions and marketing agreements. GW Pharmaceuticals Plc (NASDAQ:GWPH) recently carried out a public offering to fund further growth, raising $345 million to expand its cannabis-oriented pharmaceuticals work. AbbVie, Inc. (NYSE:ABBV), on the other hand, has retained only a limited connection to cannabis, moving instead into other treatments. Specialist consulting company MariMed, Inc. (OTC:MRMD) provides advice for those looking to expand in the sector, covering the development and management of cultivation facilities, and recently investing in a related software company. For Medmen Enterprises, Inc. (OTC:MMNFF) (CSE:MMEN), expansion means a vertically integrated supply chain across four US states as it expands a carefully developed brand.

 

Cannabis Acquisitions Continue as Companies Seek Liquidity

 

With the completion of cannabis legalization in Canada, investors are watching closely to see what effect this will have on the market. Over less than 20 years, cannabis has evolved from nothing into a multimillion-dollar industry, with companies ranging from cultivators and retailers to payment specialists and equipment suppliers. As it continues to expand at a rapid rate in both Canada and the US, the market is seeing growth for players both big and small.

 

To fuel this development, many companies are looking for fresh finance. Liquidity is needed to fund research, development, and expansion, from building larger cultivation facilities to setting up new retail outlets. This is both driven by and driving a wave of new finance deals and acquisitions, as the sector matures and consolidates its resources.

 

Acquiring the Fundamentals

 

The appeal of acquisitions is driving the strategy of companies such as hydroponics supplier Sugarmade, Inc. (OTCQB:SGMD). Hydroponic equipment is essential to the indoor cultivation of cannabis, so the growth of the sector promises a boom in demand for hydroponics. Sugarmade is using this boom to attract additional finance and undertake a raft of acquisitions, with an end goal of becoming a major player not just in hydroponics but in the cannabis space itself.

 

Such acquisitions have taken off in a big way over the past year. The first half of 2018 saw 145 mergers and acquisitions in the cannabis sector, nearly double the number for the same period in 2017. Some of these represent consolidation by existing cannabis players, as they mature from innovative startups into established businesses in a widely accepted field. But money is also coming in from the outside, for example through Constellation Brands’ acquisition of a large portion of Canopy Growth.

 

A pattern is emerging of cannabis-adjacent companies moving directly into the sector. For a company such as Constellation, the move is a sideways one from investment in alcohol to one in cannabis, protecting its place in the recreational consumables market. It’s the same play that other alcohol and tobacco companies are eyeing. For Sugarmade, acquisitions represent expansion within its existing business, ensuring a firm hold on hydroponics, as well as a move up and down the supply chain to better profit from the businesses it is already tied to.

 

A Pick-and-Shovel Strategy

 

Earlier this year, Sugarmade announced that it was moving to acquire two other suppliers of cultivation equipment. Now details of those deals are emerging, with the signing of a binding Letter of Intent (“LOI”) to acquire Sky Unlimited, LLC. This could allow Sugarmade to expand its distribution channels, thanks to the different models followed by the two companies. While Sugarmade’s sales to the cannabis sector primarily come through online buyers, Sky Unlimited specializes in selling to wholesalers and large commercial cultivators. Combining the two may create manufacturing, logistical, and marketing efficiencies across an expanded customer base.

 

“The trend in cannabis cultivation is toward the larger commercial cultivation operations, and Sky Unlimited is in the thick of that dynamic marketplace,” said 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.”

 

The types of company being targeted by Sugarmade reveal a pick-and-shovel strategy. Rather than making a direct jump into cannabis, the company is investing in the underlying products and services cannabis suppliers need. It’s a more conservative move than investing directly in cannabis, one that will buffer Sugarmade against the immediate effects of a fast-changing and still controversial sector, while letting it profit from the sector’s growth.

 

Following a previous Master Marketing Agreement with BizRight, this latest move makes Sugarmade one of the largest publicly traded cannabis supply companies. The company shows no sign of stopping there, having announced its intention to continue with an expansion strategy. The next likely move may well be brand acquisition, providing a higher price-to-earnings ratio for investors. Having already made an acquisition proposal for a Washington state retailer with $5 million in annual revenues, Sugarmade is on its way to becoming a more public fixture in the cannabis market.

 

Financing Growth in Cannabis

 

As in any sector, the success of expansion strategies will depend upon their liquidity. Fortunately, the state of the cannabis market appears to currently ensure a steady stream of finance. The US cannabis market alone is expected to be worth $10 billion in 2018, 50 percent more than it was only two years ago. Canada’s market is also expected to be worth billions, as legalization transfers the recreational consumer base from illegal dealers to legitimate businesses.

 

Cannabis companies are using this opportunity to channel finance into growth. Some are striking deals for bank loans in newly legalized regions, while others are using public offerings to raise fresh finance through sales of shares.

 

Sugarmade is taking a different approach, using expansion to fund further expansion. Following the BizRight and Sky Unlimited deals, the company has upgraded its projections for revenue in 2019 from $6 million to $70 million. Its previous deals will now provide the liquidity for future acquisitions, allowing a rolling strategy of expansion across the sector.

 

The pick-and-shovel plays look to pay off.

 

Cannabis Companies Making Big Moves

 

As the market keeps growing, so do many of the companies working in cannabis.

 

GW Pharmaceuticals Plc (NASDAQ:GWPH) is a world leader in the development of cannabis-related medicines, thanks to its strong research program and manufacturing expertise. Already a major player in the sector, the company has recently sought funds for expansion through a public offering. The result was an extra $345 million in funds, reflecting investors’ faith in the cannabis sector and in the future of companies such as GW. These funding will allow the company to keep growing its research and production work, with that research work expanding its portfolio of cannabis-related intellectual property.

 

While some companies invest more heavily in cannabis, others are diversifying. Pharmaceuticals manufacturer AbbVie, Inc. (NYSE:ABBV) is the company behind Marinol, a drug used to tackle appetite loss due to AIDS and cancer treatments. But while Marinol’s active ingredient is chemically identical to THC, the best-known active ingredient in cannabis, the company has filed only a handful of patents relating to cannabis and shows no sign of expansion into the sector. It’s a move that may help AbbVie in marketing to cannabis’s opponents, but one that leaves the space open for competitors.

 

The expansion of cannabis companies has supported the emergence of specialist support services, such as those provided by MariMed, Inc. (OTCQB:MRMD). A cannabis consulting firm, MariMed provides professional guidance on the development, funding, and operation of cultivation facilities. This can help other firms navigate the complicated issues surrounding the industry, covering everything from real estate to regulatory compliance. The company recently invested in Sprout, a software company supporting cannabis brands and dispensaries, allowing it to bundle software with its other business solutions.

 

Medmen Enterprises, Inc. (OTCQX:MMNFF) (CSE:MMEN) has used expansion to develop a vertically integrated supply chain. The company works in both cultivation and retail, meaning that it handles the product all the way from planting first seedlings to placing packaged cannabis into customers’ hands. Its recent acquisition of dispensary and cultivation facilities from Treadwell Simpson Partnership means that it is spreading its carefully managed brand from existing bases in California, Nevada, and New York into Florida.

 

The growth of the cannabis market is providing a flow of finance, leading to acquisitions and cross-company investments across the sector.

 

For more information about Sugarmade, please visit Sugarmade, Inc. (OTC:SGMD).

 

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Source:  CannabisNewsWire

Sugarmade Signs LOI to Acquire Major Hydroponic Supplier, Raises FY2019 Sales Outlook to $70M

Monrovia, California, October 17, 2018 – Sugarmade, Inc. (OTCQB:SGMD), 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 (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.

 

The terms of the LOI call for the payment by the Company of 10 million common shares of Sugarmade, which will immediately vest as a non-refundable fee, to the owners of Sky Unlimited.  These shares will be subject to normal sales and registration restrictions imposed by the financial industry and governmental agencies.  In exchange for this non-refundable compensation, Sky Unlimited agrees to a non-shop and due diligence period not to exceed 180 days.

 

At closing and upon the completion of a successful audit of up to two years of financials, the Company will pay Sky Unlimited an additional 210 million common shares.  At closing Sugarmade will pay the owners a maximum value of 20% of the transaction value in cash, which is initially contemplated to be $8 million, or will allow Sky Unlimited to exercise an option to convert a portion of the cash payment or the entire cash payment into common shares at a price of  $0.10 per share. The LOI also outlines specific incentives that contemplate allowing Sky Unlimited to gain additional Company shares based on surpassing specific revenue goals and conversely to receive a smaller payment in Company shares should the revenue targets not be reached.  It is expected the specifics of these incentives will be fully outlined in the definitive agreement.

 

About Sugarmade, Inc. (OTCQB:SGMD):

Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade’s brands include ZenHydro.comCarryOutSupplies.com, and BudLife Cannabis Storage Solutions.  For more information on the Company’s products, please visit http://www.Sugarmade.com.

 

For inquiries please contact Jimmy Chan at (888) 982-1628 or info@Sugarmade.com.

 

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 Unlimited 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.

 

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Source:  Sugarmade, Inc.

Fresh Acquisitions Help Companies Profit from Growth in the Cannabis Sector

New York, NY – October 11, 2018 –  A wave of acquisitions is sweeping the cannabis sector, as increasing legalization draws the attention of big business.

 

  • Large and mid-tier cannabis companies are absorbing their smaller competitors.
  • Tobacco and alcohol companies are moving in as a natural extension of their current ranges.
  • This is supported by growth not just among cannabis growers but also for businesses supporting them.

 

Cultivation supplies company Sugarmade, Inc. (OTC:SGMD) (SGMD Profile) has recently announced the acquisition of hydroponic product companies that could more than double its revenue. Tilray, Inc. (NASDAQ:TLRY) is fueling expansion through an initial public offering as it begins its first sales of CBD oil products in the United Kingdom. Drinks giant Constellation Brands now owns a large chunk of Canopy Growth Corp. (NYSE:CGC), one of Canada’s largest cannabis companies. GW Pharmaceuticals Plc (NASDAQ:GWPH) is releasing fresh shares to fund its R&D-driven growth. Meanwhile, Aurora Cannabis, Inc. (OTC:ACBFF) is making acquisitions across the Atlantic, buying out a pair of European hemp companies.

 

To view an infographic of this editorial, click here.

 

Acquisitions Grow in Cannabis Sector

Twenty years ago, it would have sounded like a science fiction fever dream, but today the cannabis industry is one of the fastest-growing sectors in the North American economy. The nine U.S. states where recreational cannabis is legal are about to be joined by the entire country of Canada, while another 20 states have legal markets for medical marijuana. Businesses catering to these markets are going from strength to strength, whether selling cannabis, manufacturing products derived from it or providing the tools and support that growers need.

 

This has led to a flurry of mergers and acquisitions in the cannabis sector. At the top end, large companies from other sectors have started buying into cannabis. Beverage manufacturer Constellation Brands owns more than a third of the shares in Canopy Growth, Molson is working with Hydropothecary, and Phillip Morris has been talking about moving into the sector. Seeing another legal drug coming into play, tobacco and alcohol companies want to buy their part of the future.

 

And there’s also been a lot of movement within the industry.

 

Cannabis Companies Buy Up Competitors

Among existing cannabis companies, consolidation is the name of the game. A wide scatter of small companies — startups created within a new and uncertain industry — are combining into larger operations.

 

One example is a recent series of acquisitions by Sugarmade, Inc. (OTC:SGMD). A Los Angeles company with warehouses in southern California, Sugarmade isn’t a purely cannabis-oriented business, but its work in restaurant supplies and packaging is increasingly taking a back seat. Its higher profile work is in the cannabis sector, where it provides cultivation supplies.

 

Sugarmade isn’t one of the big players in cannabis, but it has made bold moves for a mid-tier company. Following an SEC filing earlier this year, the company has recently made formal proposals for the acquisition of two hydroponic supply companies catering to the cannabis sector. These acquisitions would more than double Sugarmade’s expected revenue for next year, from $30 million to $75 million.

 

Even within the cannabis industry, this is an unusual move. Most of the mergers and acquisitions are being led by big companies, who can obtain external investment to drive their expansion. It’s a familiar case of success breeding success, as the largest companies are most able to grow. But Sugarmade is bucking that trend in a move that could see it join the big players, disrupting the status quo of the cannabis industry.

 

“These acquisitions will not only very significantly boost our top line revenue growth, but will also expand our distribution across the most important sectors of the fast-growing cannabis marketplace,” said Sugarmade CEO Jimmy Chan. “In addition to the revenue growth opportunities, we will also be afforded very meaningful cost savings across many operational functions. In particular, we believe there are strong cost synergies relative to manufacturing, purchasing, international transport, warehousing and shipment to customers. Perhaps most exciting, however, is that these acquisitions will place us among the largest public companies in the booming cannabis sector.”

 

It’s a strategy that brings a lot of obvious advantages. Greater integration smooths out supply chains and increases efficiency, reducing overheads to improve profits. It increases a company’s ability to bring specialist expertise in house. It increases a company’s influence in negotiating with suppliers and customers, as well as in lobbying authorities.

 

But in a sector where mergers are likely to continue, it also has another effect. As the big players in tobacco and alcohol look for cannabis businesses to buy, Sugarmade’s growing strength improves its bargaining position. Whether the company aims to be bought up or to hold onto its independence, it will be better able to negotiate from a place of strength.

 

Supporting Services

Talk about the cannabis industry usually focuses on the cultivators and distributors, those directly dealing with cannabis. But over the past decade, the industry has grown far more diverse. Support companies such as Sugarmade play an increasingly important role.

 

The most obvious support services are those supplying cultivation equipment. This is where Sugarmade’s main business lies, selling growers the tools they need to produce their crops.

 

Hydroponics, the growth of plants in water-based nutrients instead of soil, is an important part of this. Used to grow high-quality plants in indoor facilities, this method is central to the cultivation of controlled, high-quality cannabis crops in secure conditions. Hydroponic sales have allowed Sugarmade to expand beyond North America and into the European market, where cannabis is still largely illegal but its cultivation tools have other uses. The companies Sugarmade is buying also work in hydroponics and their acquisition could make the company a major player within that market.

 

Support services for cannabis are increasingly diverse. Equipment for waste disposal, lighting and growing beds are all important. Some of this is provided by hydroponics companies, while other components are created by specialist firms. Seeds are nurtured and sold, new plant strains grown, and growing and harvesting techniques developed. Research and financial services specifically geared toward cannabis add to a complex and multifaceted industry.

 

The Potential for Growth

Much as its opponents might disagree, the cannabis industry isn’t going away. In the United States, where Sugarmade is based, the industry shows every sign of continuing its rapid growth.

 

The biggest driver for growth is still legal change. The legalization of both medical and recreational cannabis has been spreading state by state, as increasingly liberal attitudes are reflected in the law. Though cannabis remains illegal at the federal level, the government has done nothing to clamp down on these efforts by states. If anything, the government’s attitude is softening, with this year’s Farm Bill set to legalize industrial hemp, a nonpsychoactive form of cannabis.

 

Industrial hemp is already being grown in test projects in the United States, creating impressive profits for the farmers involved. While its cultivation often operates differently from that of medical and recreational cannabis, it relies on much of the same knowledge and many of the same tools. For companies such as Sugarmade, which provide cultivation supplies, industrial hemp will mean significant opportunities for growth.

 

On top of this, there’s the long-term growth expected from cannabis companies within the states that have legalized their products. As the legal consumer market settles in, the habits of cannabis consumers will change. They’ll move away from buying from criminals, undermining illegal networks and giving more business to the legal companies. As these companies expand production facilities, the need for additional equipment and supplies will increase – supplies that can be provided by Sugarmade and the companies that it’s absorbing.

 

Many North American cannabis companies are seeing substantial growth. Tilray, Inc. (NASDAQ: TLRY) is looking to finance its ongoing expansion through initial public offerings in the United States and in Canadian provinces. A leading medical marijuana company, Tilray has sold its products to customers on five continents and is one of the first companies to sell CBD oil, a cannabis derivative, in the United Kingdom. Its expansion is driven not by acquisitions but by a strong research and development program.

 

Canopy Growth Corporation (NYSE:CGC) is one of the largest cannabis companies in Canada. Drinks manufacturer Constellation Brands has pumped over $4 billion into Canopy Growth, and the American giant now owns more than a third of Canopy Growth’s shares. It’s a move that will help the companies to collaborate in producing cannabis-infused drinks, which will become legal in Canada next year. More than this, it’s a move by a drinks manufacturer to get a foothold in cannabis and so expand from alcohol into another legal drug.

 

GW Pharmaceuticals Plc (NASDAQ:GWPH) has been growing through new products and research, with the creation of the first FDA-approved prescription medicine derived from cannabis plants. It has just announced the release of new shares, which are expected to raise $300 million in support of the company’s ongoing growth.

 

Aurora Cannabis, Inc. (OTCQX:ACBFF) is going international with its latest acquisition. In September,  the company acquired Europe’s largest producer of organic hemp, Agropro UAB, and hemp processor and distributor Borela UAB. This will increase the company’s production of hemp-derived health and wellness products around the world.

 

With the cannabis industry expanding, mergers and acquisitions are helping to drive a round of growth, creating companies with the power to compete on the global stage.

 

For more information about Sugarmade, please visit Sugarmade, Inc. (OTC:SGMD).

 

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

 

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with CNW or any company mentioned herein. The commentary, views and opinions expressed in this release by CNW are solely those of CNW and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW and FNM for any investment decisions by their readers or subscribers. CNW and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

 

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

 

CNW & FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

 

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.  The forward-looking statements in this release are made as of the date hereof and CNW and FNM undertake no obligation to update such statements.

 

CannabisNewsWire (CNW) & NetworkNewsWire (NNW) are proud to be affiliated partners of the Investor Brand Network (IBN)

About IBN

Over the past 10+ years we have consistently introduced new network brands, each specifically designed to fulfil the unique needs of our growing client base and services. Today, we continue to expand our branded network of highly influential properties, leveraging the knowledge and energy of specialized teams of experts to serve our increasingly diversified list of clients.

Please feel free to visit the Investor Brand Network (IBN) http://www.InvestorBrandNetwork.com

Corporate Communications Contact:

CannabisNewsWire (CNW)

Denver, Colorado

www.CannabisNewsWire.com

303.498.7722 Office

Editor@CannabisNewsWire.net

 

Media Contact:

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NNW@FinancialNewsMedia.com

+1-(954)345-0611

 

SOURCE:  CannabisNewsWire

Growing Cannabis Sector Sees Surge in Acquisitions

CannabisNewsWire Editorial Coverage

 

New York, NY – October 3, 2018 – The ongoing growth of the cannabis sector is now driving a surge in acquisitions, as companies compete to control a burgeoning market.

 

  • The cannabis sector has seen incredible growth, reaching $10 billion this year in the United States alone.
  • This has led to a wave of mergers and acquisitions, as companies strengthen their positions.
  • This pattern is accompanied by expansion into new markets and investment in smaller companies by their larger cousins.

 

Hydroponic supplier Sugarmade, Inc. (OTC:SGMD) (SGMD Profile) is in the process of acquiring two hydroponic companies, improving its already strong position as a provider of vital cultivation equipment. Industry leader Aphria, Inc. (OTC:APHQF) is making acquisitions in Jamaica, Latin America, and Canada, with the latter giving it access to European markets. Cannabis outsider Constellation Brands, Inc. (NYSE:STZ) has invested heavily in cannabis grower Canopy Growth, with an eye to creating cannabis-infused beverages. In Florida, MedMen Enterprises, Inc. – Ordinary Shares – Class B (Sub Voting) (OTC:MMNFF) has acquired cultivation and retail assets, expanding its reach from three to four states. And Emerald Health Therapeutics (OTC:EMHTF) is set to acquire the remaining shares of Northern Vine Canada Inc., in a move that gives Emerald full ownership of Northern Vine.

 

To view an infographic of this editorial, click here.

 

Acquisitions Heating Up in the Cannabis Sector

 

For a new sector of the economy, the cannabis industry has grown at a fantastic rate. In the relatively few years since medical cannabis started to be legalized in North America, a multimillion-dollar industry has evolved, covering cultivators, retailers, marketing and all the support services the industry needs. The recent legalization of recreational cannabis in several U.S. states and Canada, together with the growing popularity of medical cannabis, is propelling the industry’s value into the billions.

 

Initially, growth was mostly driven by the creation of new companies or subsidiaries of pharmaceutical firms, as they set up new businesses in a new economic space. But in recent years, that has changed. Larger cannabis companies have started taking over smaller rivals and companies serving different parts of the market. Acquisitions are on the rise.

 

Consolidation in a Growing Sector

 

The cannabis sector is made up of a wide range of companies, from those focused on cultivation to the likes of Sugarmade, Inc. (OTCQB:SGMD), a hydroponics supply company that is making a move into the broader cannabis space.

 

The appearance of this range of companies has been made possible by the phenomenal growth of the market. The cannabis market in the United States is expected to be worth over $10 billion this year, 50 percent larger than it was in 2016, and that growth shows no sign of slowing. With an estimated $46 billion worth of business still existing outside legal markets, there’s vast scope for expansion as legalization spreads and consumers are drawn away from black market dealers. And that’s only in the United States, never mind the rest of the world.

 

As faith in the industry grows, investors are pouring in additional funding, leading to a boom in mergers and acquisitions. Some early players are cashing out, making the most of their companies’ growth to make a healthy profit and move on to something new. Others are taking over these smaller businesses, creating businesses with greater economic clout and more vertical integration.

 

This led to 145 mergers and acquisitions in the sector in the first half of 2018, compared with only 79 during the same period a year before. Some of these have made big news, with Aphria investing $200 million acquisitions in Latin America and Jamaica while drinks company Constellation Brands acquired a third of the equity in Canopy Growth. This shift creates even more opportunities for companies sticking in the sector, such as Sugarmade.

 

Acquisitions Big and Small

 

Based in California, Sugarmade has immediate access to one of the world’s largest legal cannabis markets and is making the most of that. One of the largest publicly traded hydroponic supply companies, its growth has been fueled by the vital role hydroponic equipment plays in the cultivation of cannabis.

 

Much cannabis cultivation takes place indoors, using sophisticated specialist equipment produced by companies such as Sugarmade. This gives producers greater control over growing conditions, encourages more successful crops, allows year-round production and makes it easier to secure this valuable crop.

 

Already a significant supplier of hydroponics, Sugarmade looks set to consolidate its position through the recently announced acquisition of two companies selling hydroponic and other cultivation supplies. This could make a huge difference to the company’s financial fortunes. Its projected revenues for 2019, previously set at $30 million, could exceed $75 million if these deals go through, more than doubling the company’s revenues.

 

“The hydroponic supply sector is still highly fragmented with many of the larger players not likely to reach public company liquidity events for the original entrepreneurial teams,” said Jimmy Chan, CEO of Sugarmade. “We have entered into talks with at least two of these companies for acquisition, which we believe will be highly accretive for common Sugarmade shareholders and additive to our already robust top line growth rate. We wanted to publicly disclose these discussions to ensure that all shareholders have equal access to our direction, thus our recent public filing.”

 

The company has set a special shareholder meeting October 10, creating an opportunity to establish more shares in the company and discuss the acquisitions. In a fast-growing sector such as cannabis, there’s little time for delay.

 

Investing in Others

 

Sugarmade’s success is largely driven by reaching new markets and supporting other companies, maximizing its potential for growth. Though U.S. based, the company has also begun expansion into the European market through online sales into the United Kingdom. Even in countries without a legal cannabis market, it is possible for hydroponics companies to sell their wares to people growing other specialist plants. And with cannabis legalization spreading globally, this allows companies such as Sugarmade to firmly establish their positions before a new market emerges.

 

The company is expanding its presence within the North American cannabis market by investing in industrial hemp and cannabidiol (CBD). Industrial hemp, a form of cannabis without the high, can be used for a wide range of purposes and looks set to be widely grown in the United States following the passage of the 2018 Farm Bill.

 

CBD, which can be derived from industrial hemp, is a chemical whose beneficial properties are only just starting to be understood and which is used in a growing range of health and wellness products. Sugarmade is investing $1 million Hempistry, Inc., a Nevada hemp company. This is expected to provide access to Hempistry shares as well as a supply agreement between the two companies.

 

Other businesses are also working to expand within the sector.

 

Aphria, Inc. (OTC:APHQF), one of the most successful companies in the cannabis sector, is undertaking acquisitions that will extend its reach beyond North America. In July, it announced acquisitions in Argentina, Colombia, and Jamaica worth around $200 million. Acquired through sister company Scythian Biosciences Corp., these will give Aphria reach into markets outside the United States and Canada. The company also expanded its international reach through the acquisition of Canadian company Nuuvera, which has supply and sales agreements with companies in Germany, Italy, Spain, Malta, the United Kingdom, Israel and Uruguay.

 

Drinks manufacturer Constellation Brands, Inc. (NYSE:STZ) is best known for beverages such as Corona, but it has recently made some surprising choices. The company has invested heavily in Canadian company Canopy Growth, moving into the cannabis market. Constellation’s approach isn’t about selling cannabis but about creating cannabis-infused drinks. These beverages are due to become legal in Canada next year. By creating a bridge between beverage manufacturers and cannabis growers, Constellation could be the first to establish widely recognized cannabis drink brands.

 

Cannabis manufacturer and retailer MedMen Enterprises, Inc. – Ordinary Shares – Class B (Sub Voting) (OTC:MMNFF) shows what can be achieved by combining different elements in the cannabis supply chain. The company sees the product through from cultivation to customers’ hands, all under a carefully managed brand. This summer, it acquired dispensary and cultivation assets from Treadwell Simpson Partnership and affiliates, adding facilities in Florida to those it already owned in California, Nevada, and New York.

 

Emerald Health Therapeutics (OTC:EMHTF) owns Agro-Biotech, a licensed cannabis grower with a 75,000-square-foot indoor facility and plans to add a 500,000-square foot greenhouse. The company also owns 50 percent of Pure SunFarms, which is converting a licensed existing 1.1 million-square-foot greenhouse into a full-production commercial resource.

 

The cannabis sector has matured in recent years. As it grows within the United States and beyond, acquisitions are allowing companies to expand their options and strengthen their position in a powerful new industry.

 

For more information about Sugarmade, please visit Sugarmade, Inc. (OTCQB:SGMD).

 

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

 

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

 

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with CNW or any company mentioned herein. The commentary, views and opinions expressed in this release by CNW are solely those of CNW and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW and FNM for any investment decisions by their readers or subscribers. CNW and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

 

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

 

CNW & FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

 

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.  The forward-looking statements in this release are made as of the date hereof and CNW and FNM undertake no obligation to update such statements.

 

CannabisNewsWire (CNW) & NetworkNewsWire (NNW) are proud to be affiliated partners of the Investor Brand Network (IBN)

 

About IBN

Over the past 10+ years we have consistently introduced new network brands, each specifically designed to fulfil the unique needs of our growing client base and services. Today, we continue to expand our branded network of highly influential properties, leveraging the knowledge and energy of specialized teams of experts to serve our increasingly diversified list of clients.

Please feel free to visit the Investor Brand Network (IBN) http://www.InvestorBrandNetwork.com

Corporate Communications Contact:

CannabisNewsWire (CNW)

Denver, Colorado

www.CannabisNewsWire.com

303.498.7722 Office

Editor@CannabisNewsWire.net

 

Media Contact:

FN Media Group, LLC

NNW@FinancialNewsMedia.com

+1-(954)345-0611

Source:  CannabisNewsWire

Growing Cannabis Sector Sees Surge in Acquisitions

CannabisNewsWire Editorial Coverage

 

New York, NY – October 3, 2018 – The ongoing growth of the cannabis sector is now driving a surge in acquisitions, as companies compete to control a burgeoning market.

 

  • The cannabis sector has seen incredible growth, reaching $10 billion this year in the United States alone.
  • This has led to a wave of mergers and acquisitions, as companies strengthen their positions.
  • This pattern is accompanied by expansion into new markets and investment in smaller companies by their larger cousins.

 

Hydroponic supplier Sugarmade, Inc. (OTC:SGMD) (SGMD Profile) is in the process of acquiring two hydroponic companies, improving its already strong position as a provider of vital cultivation equipment. Industry leader Aphria, Inc. (OTC:APHQF) is making acquisitions in Jamaica, Latin America, and Canada, with the latter giving it access to European markets. Cannabis outsider Constellation Brands, Inc. (NYSE:STZ) has invested heavily in cannabis grower Canopy Growth, with an eye to creating cannabis-infused beverages. In Florida, MedMen Enterprises, Inc. – Ordinary Shares – Class B (Sub Voting) (OTC:MMNFF) has acquired cultivation and retail assets, expanding its reach from three to four states. And Emerald Health Therapeutics (OTC:EMHTF) is set to acquire the remaining shares of Northern Vine Canada Inc., in a move that gives Emerald full ownership of Northern Vine.

 

To view an infographic of this editorial, click here.

 

Acquisitions Heating Up in the Cannabis Sector

 

For a new sector of the economy, the cannabis industry has grown at a fantastic rate. In the relatively few years since medical cannabis started to be legalized in North America, a multimillion-dollar industry has evolved, covering cultivators, retailers, marketing and all the support services the industry needs. The recent legalization of recreational cannabis in several U.S. states and Canada, together with the growing popularity of medical cannabis, is propelling the industry’s value into the billions.

 

Initially, growth was mostly driven by the creation of new companies or subsidiaries of pharmaceutical firms, as they set up new businesses in a new economic space. But in recent years, that has changed. Larger cannabis companies have started taking over smaller rivals and companies serving different parts of the market. Acquisitions are on the rise.

 

Consolidation in a Growing Sector

 

The cannabis sector is made up of a wide range of companies, from those focused on cultivation to the likes of Sugarmade, Inc. (OTCQB:SGMD), a hydroponics supply company that is making a move into the broader cannabis space.

 

The appearance of this range of companies has been made possible by the phenomenal growth of the market. The cannabis market in the United States is expected to be worth over $10 billion this year, 50 percent larger than it was in 2016, and that growth shows no sign of slowing. With an estimated $46 billion worth of business still existing outside legal markets, there’s vast scope for expansion as legalization spreads and consumers are drawn away from black market dealers. And that’s only in the United States, never mind the rest of the world.

 

As faith in the industry grows, investors are pouring in additional funding, leading to a boom in mergers and acquisitions. Some early players are cashing out, making the most of their companies’ growth to make a healthy profit and move on to something new. Others are taking over these smaller businesses, creating businesses with greater economic clout and more vertical integration.

 

This led to 145 mergers and acquisitions in the sector in the first half of 2018, compared with only 79 during the same period a year before. Some of these have made big news, with Aphria investing $200 million acquisitions in Latin America and Jamaica while drinks company Constellation Brands acquired a third of the equity in Canopy Growth. This shift creates even more opportunities for companies sticking in the sector, such as Sugarmade.

 

Acquisitions Big and Small

 

Based in California, Sugarmade has immediate access to one of the world’s largest legal cannabis markets and is making the most of that. One of the largest publicly traded hydroponic supply companies, its growth has been fueled by the vital role hydroponic equipment plays in the cultivation of cannabis.

 

Much cannabis cultivation takes place indoors, using sophisticated specialist equipment produced by companies such as Sugarmade. This gives producers greater control over growing conditions, encourages more successful crops, allows year-round production and makes it easier to secure this valuable crop.

 

Already a significant supplier of hydroponics, Sugarmade looks set to consolidate its position through the recently announced acquisition of two companies selling hydroponic and other cultivation supplies. This could make a huge difference to the company’s financial fortunes. Its projected revenues for 2019, previously set at $30 million, could exceed $75 million if these deals go through, more than doubling the company’s revenues.

 

“The hydroponic supply sector is still highly fragmented with many of the larger players not likely to reach public company liquidity events for the original entrepreneurial teams,” said Jimmy Chan, CEO of Sugarmade. “We have entered into talks with at least two of these companies for acquisition, which we believe will be highly accretive for common Sugarmade shareholders and additive to our already robust top line growth rate. We wanted to publicly disclose these discussions to ensure that all shareholders have equal access to our direction, thus our recent public filing.”

 

The company has set a special shareholder meeting October 10, creating an opportunity to establish more shares in the company and discuss the acquisitions. In a fast-growing sector such as cannabis, there’s little time for delay.

 

Investing in Others

 

Sugarmade’s success is largely driven by reaching new markets and supporting other companies, maximizing its potential for growth. Though U.S. based, the company has also begun expansion into the European market through online sales into the United Kingdom. Even in countries without a legal cannabis market, it is possible for hydroponics companies to sell their wares to people growing other specialist plants. And with cannabis legalization spreading globally, this allows companies such as Sugarmade to firmly establish their positions before a new market emerges.

 

The company is expanding its presence within the North American cannabis market by investing in industrial hemp and cannabidiol (CBD). Industrial hemp, a form of cannabis without the high, can be used for a wide range of purposes and looks set to be widely grown in the United States following the passage of the 2018 Farm Bill.

 

CBD, which can be derived from industrial hemp, is a chemical whose beneficial properties are only just starting to be understood and which is used in a growing range of health and wellness products. Sugarmade is investing $1 million Hempistry, Inc., a Nevada hemp company. This is expected to provide access to Hempistry shares as well as a supply agreement between the two companies.

 

Other businesses are also working to expand within the sector.

 

Aphria, Inc. (OTC:APHQF), one of the most successful companies in the cannabis sector, is undertaking acquisitions that will extend its reach beyond North America. In July, it announced acquisitions in Argentina, Colombia, and Jamaica worth around $200 million. Acquired through sister company Scythian Biosciences Corp., these will give Aphria reach into markets outside the United States and Canada. The company also expanded its international reach through the acquisition of Canadian company Nuuvera, which has supply and sales agreements with companies in Germany, Italy, Spain, Malta, the United Kingdom, Israel and Uruguay.

 

Drinks manufacturer Constellation Brands, Inc. (NYSE:STZ) is best known for beverages such as Corona, but it has recently made some surprising choices. The company has invested heavily in Canadian company Canopy Growth, moving into the cannabis market. Constellation’s approach isn’t about selling cannabis but about creating cannabis-infused drinks. These beverages are due to become legal in Canada next year. By creating a bridge between beverage manufacturers and cannabis growers, Constellation could be the first to establish widely recognized cannabis drink brands.

 

Cannabis manufacturer and retailer MedMen Enterprises, Inc. – Ordinary Shares – Class B (Sub Voting) (OTC:MMNFF) shows what can be achieved by combining different elements in the cannabis supply chain. The company sees the product through from cultivation to customers’ hands, all under a carefully managed brand. This summer, it acquired dispensary and cultivation assets from Treadwell Simpson Partnership and affiliates, adding facilities in Florida to those it already owned in California, Nevada, and New York.

 

Emerald Health Therapeutics (OTC:EMHTF) owns Agro-Biotech, a licensed cannabis grower with a 75,000-square-foot indoor facility and plans to add a 500,000-square foot greenhouse. The company also owns 50 percent of Pure SunFarms, which is converting a licensed existing 1.1 million-square-foot greenhouse into a full-production commercial resource.

 

The cannabis sector has matured in recent years. As it grows within the United States and beyond, acquisitions are allowing companies to expand their options and strengthen their position in a powerful new industry.

 

For more information about Sugarmade, please visit Sugarmade, Inc. (OTCQB:SGMD).

 

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

 

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

 

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with CNW or any company mentioned herein. The commentary, views and opinions expressed in this release by CNW are solely those of CNW and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW and FNM for any investment decisions by their readers or subscribers. CNW and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

 

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

 

CNW & FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

 

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.  The forward-looking statements in this release are made as of the date hereof and CNW and FNM undertake no obligation to update such statements.

 

CannabisNewsWire (CNW) & NetworkNewsWire (NNW) are proud to be affiliated partners of the Investor Brand Network (IBN)

 

About IBN

Over the past 10+ years we have consistently introduced new network brands, each specifically designed to fulfil the unique needs of our growing client base and services. Today, we continue to expand our branded network of highly influential properties, leveraging the knowledge and energy of specialized teams of experts to serve our increasingly diversified list of clients.

Please feel free to visit the Investor Brand Network (IBN) http://www.InvestorBrandNetwork.com

Corporate Communications Contact:

CannabisNewsWire (CNW)

Denver, Colorado

www.CannabisNewsWire.com

303.498.7722 Office

Editor@CannabisNewsWire.net

 

Media Contact:

FN Media Group, LLC

NNW@FinancialNewsMedia.com

+1-(954)345-0611

Source:  CannabisNewsWire

Sugarmade Targets $45 Million Revenue Stream for Highly Accretive Acquisitions in Cannabis Supply Sector

Monrovia, Calif., October 2, 2018 – Sugarmade, Inc. (OTCQB:SGMD), one of the largest publicly traded hydroponics supply companies, today announces it has issued formal proposals to acquire two hydroponic cultivation supply companies within the fast growing cannabis sector.  Sugarmade recently reiterated its 2019 revenue guidance of $30 million representing growth of over 700%, but should these acquisition efforts be successful, the Company would immediately boost its revenue guidance to $75 million for next year, representing one of the fastest revenue growth rates in the cannabis industry.   In addition to boosting the top line growth rate, management of Sugarmade believes these acquisitions will also be highly accretive to both overall shareholder value and net income.

 

Sugarmade has issued two formal acquisition proposals. The first acquisition target is a Southern California-based, major supplier of hydroponic cultivation supplies to the wholesale sector and to large commercial cultivators, which is profitable and cash flow positive, producing in excess of $40 million of revenue per year.  Under the terms of the proposal, Sugarmade would acquire the organization for a combination of cash and Sugarmade common stock.

 

The second is a Washington state-based retailer, which is also profitable and cash flow positive, producing approximately $5 million of revenue per year.  Under the terms of the proposal, Sugarmade would issue common stock to acquire the retailer.

 

Mr. Jimmy Chan, CEO of Sugarmade commented, “These acquisitions will not only very significantly boost our top line revenue growth, but will also expand our distribution across the most important sectors of the fast-growing cannabis marketplace, including the wholesale market, which services brick and mortar retailers and to large commercial cultivation operations, which are rapidly expanding their cultivation footprints.   In addition to the revenue growth opportunities, we will also be afforded very meaningful cost savings across many operational functions. In particular, we believe there are strong cost synergies relative to manufacturing, purchasing, international transport, warehousing, and shipment to customers. Perhaps most exciting, however, is that these acquisitions will place us among the largest public companies in the booming cannabis sector.”

 

Relative to the proposed acquisitions, management of the Company and its board of directors believe the acquisitions will be highly accretive to common shareholder value and will significantly strengthen the Company’s position in the fast growing hydroponic cultivation and supply market sector.

 

About Sugarmade, Inc. (OTC:SGMD):

Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade’s brands include ZenHydro.comCarryOutSupplies.com, and BudLife Cannabis Storage Solutions.  For more information on the Company’s products, please visit http://www.Sugarmade.com.

 

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 Jimmy Chan at (888) 982-1628 or info@Sugarmade.com.

 

Source:  Sugarmade, Inc.

Sugarmade Comments on its Hemp Investment, the $22 Billion Hemp-Derived CBD Market, and Pending Hemp Bill Passage

MONROVIA, Calif., Sept. 20, 2018  – Sugarmade, Inc. (OTC: SGMD), one of the largest publicly traded hydroponics supply companies, today made comments on its recent investment into the industrial hemp market and on the pending Hemp Bill of 2018, which now appears to be on the verge of passage and enactment into federal law.

 

A recent report published by Brightfield Group has estimated the hemp-derived cannabidiol (CBD) market at $591 million this year, growing to $22 billion by 2022.  This estimate is of particular importance to Sugarmade as its recent Kentucky hemp investment was for the cultivation of an ultra-rich CBD strain of industrial hemp.

 

Mr. Jimmy Chan, CEO of Sugarmade commented, “Cultivation of hemp on the Kentucky site began in early July with even the recent heavy rains not hampering the growth.  We are especially excited about the particular strain of hemp that was planted, which is expected to yield up to 14% CBD.  Such a strain of product is in significant demand and it is expected that the entire crop will be sold prior to harvest.  Our timing on our investment could not have been better considering the pending Farm and Hemp Bills and demand situation, which seems to get tighter almost every day.”

 

Sugarmade believes the hemp portion of the farm bill will benefit the Company and its shareholders.  Sugarmade is committing capital over the next twelve months to invest in Hempistry, Inc., a privately held Nevada corporation, which has begun planting an ultra-high CBD industrial hemp strain in the U.S. state of Kentucky.  Additionally, Sugarmade expects to sign an agreement with Hempistry for hemp cultivation supplies. Hempistry began cultivation in early July and has signed an agreement reserving up to 23,000 acres of prime Kentucky farmland for its exclusive use for hemp cultivation.

 

Passage of the bill will allow for easier interstate transportation of the biomass, which is expected to be harvested later in the fourth quarter of this calendar year. Passage will also enable the operators of the Kentucky operation to gain access to crop insurance, an important risk mitigation component of any farming operation.  Additionally, passage is expected to expand the market for CBD, the non-psychoactive component of cannabis.

 

“We expect the passage of the Farm Bill to further open the markets for industrial hemp and the cannabis components derived from hemp,” said Chan.  “It is an exciting time in the hemp industry.  We are very pleased to have already made a significant investment into hemp cultivation that we believe will create strong additional value holders for Sugarmade common shares.”

 

About Sugarmade, Inc. (OTC:SGMD):

Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade’s brands include ZenHydro.comCarryOutSupplies.com, and BudLife Cannabis Storage Solutions.  For more information on the Company’s products, please visit http://www.Sugarmade.com.

 

For inquiries please contact Jimmy Chan at (888) 982-1628 or info@Sugarmade.com.

 

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.

 

Corporate Communications Contact: 
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com

Source: Sugarmade, Inc.

Sugarmade Applies for OTCQB Eligibility

MONROVIA, California, August 24, 2018 — Sugarmade, Inc. (OTC-QB: SGMD), one of the largest publicly traded hydroponics supply companies, today announces its application for the OTCQB Venture Marketplace for the trading of Sugarmade common shares. The Company had previously announced, in error, its return to the OTCQB Venture Market. Management had thought the return to the OTCQB would be automatic once fully reporting status was restored, this assumption was incorrect and thus Sugarmade has reapplied.

 

Mr. Jimmy Chan, CEO of Sugarmade commented, “The OTCQB enables Sugarmade to build our visibility and expand liquidity for our shareholders without the rigid procedures and requirements that go along with an exchange listing. For these reasons, we have applied to the OTCQB and our application is under review. We believe we meet all the requirements and that the trading venue is optimal for Sugarmade.”

 

About Sugarmade, Inc. (OTC:SGMD):
Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade’s brands include ZenHydro.comCarryOutSupplies.com , and BudLife Cannabis Storage Solutions. For more information on the Company’s products, please visit http://www.Sugarmade.com .

 

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 Jimmy Chan at +1-(888)-982-1628 or info@Sugarmade.com.

 

SOURCE Sugarmade, Inc.

Sugarmade Launches Industrial Hemp and CBD Initiative

MONROVIA, California, August 21, 2018 — Sugarmade, Inc. (OTC: SGMD), one of the largest publicly traded hydroponics supply companies, today announces a new corporate initiative in the booming hemp market.  Sugarmade is committing up to $1,0000,000 in capital over the next twelve months to invest in Hempistry, Inc. a privately held Nevada corporation, which has begun planting an ultra-high cannabidiol (CBD) industrial hemp strain in the U.S. State of Kentucky.  Additionally, Sugarmade expects to sign an agreement with Hempistry for hemp cultivation supplies.  Hempistry has already begun planting and has signed an agreement reserving up to 23,000 acres of prime Kentucky farmland for its exclusive use for hemp cultivation.  Additionally, Sugarmade’s CEO, Jimmy Chan, announces he has become an advisor to and a shareholder in Hempistry, Inc.

 

According the Hemp Business Journal, the U.S. Hemp industry produced at least $820 million in revenues during 2017, with growth to over $1 billion for 2018, and an expected 14% compound annual growth rate through 2022.  Much of the recent growth has come from the demand for hemp-derived CBD for use in health and wellness products.  The strain of industrial hemp being grown by Hempistry is ultra-rich in CDB, but contains less than 0.3% of THC, the psychoactive ingredient found in marijuana.  Hempistry has already begun planting and thus far has 100 acres of this high CDB strain under cultivation.  In total, Hempistry has optioned 23,000 acres.

 

Sugarmade’s investment into the market for high-CBD hemp is expected to be highly accretive for common shareholders in two ways.  First, Sugarmade’s investment will be in the form of common shares in Hempistry allowing Sugarmade common shareholders to possibly benefit from any future initial public offering of Hempistry.  Second, Sugarmade is expected to sign a supply agreement with Hempistry for cultivation supplies, which would be additive to corporate revenues.

 

Jimmy Chan, CEO of Sugarmade commented, “Demand for industrial hemp and products derived from hemp is soaring with no let up in sight.  We expect our direct investment into Hempistry to be accretive to common shareholders and our supply agreement to be lucrative.  All of us at Sugarmade see a tremendous opportunity to become a supplier to this fast growing sector, thus we are today launching our first in a series of activities within the hemp markets.  We plan to provide additional details relative to these hemp initiatives over the coming weeks.”

 

Jimmy Chan has also become an advisor and shareholder of Hempistry.  Mr, Chan’s role within the Hempistry will relate to capital formation and consultation relating to the marketing of the biomass to processors and manufacturers.   Mr. Chan is minority shareholder in Hempistry.

 

About Sugarmade, Inc. (OTC: SGMD):

Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade’s brands include ZenHydro.comCarryOutSupplies.com, and BudLife Cannabis Storage Solutions.  For more information on the Company’s products, please visit http://www.Sugarmade.com.

 

For inquiries please contact Jimmy Chan at (888) 982-1628 or info@Sugarmade.com.

 

STATEMENTS: Nothing in the press release is an offering for any investment.  This is not an offer to sell or a solicitation of any offer to buy any securities. Offers are made only by prospectus or other offering materials.

 

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 Jimmy Chan at (888)-982-1628 or info@Sugarmade.com.

 

SOURCE Sugarmade, Inc.

About Sugarmade, Inc.

GROWING THROUGH BRAND EXPANSION AND ACQUISITION

 

Sugarmade, Inc. is a city of Monrovia, California-based, publicly traded company engaged in the growing brands and products that hold disruptive potential.

 

Our trading symbol on the OTCQB Venture Market is SGMD. We are a fully audited company and are reporting with the U.S. Securities & Exchange Commission.

 

AGRICULTURAL & CULTIVATION SUPPLIES

 

We are also a supplier of products to the agricultural sector by way of several recently signed marketing, distribution and business arrangements. We are realizing very strong growth from this business sector, which we believe will continue for the foreseeable future. This is an exciting market sector with strong growth in a variety of areas. We plan to address many of these growth areas.

 

OUR PASSION IS GROWTH

 

Sugarmade, Inc. (OTCQB:SGMD) is a holding company involved in various hyper-growth business segments. Headquartered in Monrovia, California, a suburb of Los Angeles, we seek to build and expand business operations in a variety of sectors.

 

We have various business operations in diverse marketplaces including; packaging and paper goods for various industries, agricultural supplies, and culinary seasonings.

 

We are always seeking to expand our business portfolio to maximize value for our shareholders.

 

WHAT WE BELIEVE

 

At Sugarmade, Inc., we specialize in growing and acquiring innovative brands to maximize value for our employees, shareholders and other stakeholders.

 

Over the past few years, our Company has seen significant growth. In just a few years we have moved from being a small, but an innovative supplier to the quick service restaurant industry to now being a multi-divisional, and multi-product company in various market sectors. But, we think we are just getting started with our growth plans.

 

OUR TEAM

 

JIMMY CHAN
Chairman & CEO
Mr. Jimmy Chan is an experienced business executive who has been instrumental in growing multiple business operations.

 

He is the CEO and Chairman of the Board of publicly traded Sugarmade, Inc., (OTCQB:SGMD) one of the largest and fastest growing publicly traded suppliers to the hydroponic sector. At Sugarmade, he has grown the business operation substantially with more than 800% revenue growth expected during the next fiscal year. He is also the founder of CarryOutSupplies.com, a company that revolutionized the custom-printed paper supplies sub-sector of the quick service restaurant industry, which merged with Sugarmade during 2014.

 

Through his experiences in various businesses operations, he has developed a strong expertise in international trade and banking, and international manufacturing and importation. Throughout his career, he has started numerous other businesses, including a real estate investment operation that accumulated a substantial portfolio of residential properties.

 

LAWRENCE TAN
Board Member and CTO
Mr. Lawrence Tan is an expert in enterprise information systems with specific proficiency in designing and operating large-scale information platforms. He also makes a pretty terrific Chief Technology Officer here at Sugarmade, Inc.

 

Lawrence’s main responsibilities within the Sugarmade organization are to evolve the information systems platform to ensure optimal decision-making capabilities exist throughout all of the operating subsidiaries. He is a founder of BizRight, Inc., which has grown substantially over the past few years.

 

Mr. Tan is a graduate of the University of Auckland where he was awarded a Bachelor of Science degree in computer science.

 

ARMAN TABATABAEI
Operations Consultant
Mr. Tabatabaei provides high-level day-to-day strategic guidance and tactical operational supervision for all aspects of the Corporation’s businesses.

 

With over 15 years of management and operations experience, he has earned a strong reputation for a numbers-based analytical approach to management of organizations. An expert at data collection and analysis relative to resource management, risk forecasting and profit and loss management, he has made significant progress in revamping Sugarmade’s operations.

 

Prior to joining the Company in 2017, he consulted with large corporations to create supply chain efficiencies using mathematical models and software such as JPM, SPSS and Minitab.

 

Arman is also well versed in the retail industry after having started and successfully selling several retail establishments.

 

Mr. Tabatabaei possesses a Bachelor of Science degree in health sciences, with an emphasis on mathematics and physics, and a Master of Business Administration degree, with additional post-graduate work in predictive analysis, from Pennsylvania State University.

 

GIOVANNI PIERCE
Legal and Compliance
Mr. Pierce directs our efforts in human resources and is also responsible for ensuring regulatory and legal compliance.

 

Giovanni brings many years of solid experience to the Sugarmade team having previously been Legal Supervisor at Autotelic Inc. where he was responsible for corporate legal compliance and human resources supervision. Prior, he also held senior legal and compliance operational positions within the life sciences and pharmaceutical industries. Mr. Pierce is a graduate of Pacific Coast University School of Law and also attended Abraham Lincoln school of law.

 

He also gained valuable insights into the business world through earning his Bachelor of Science degree from California State University, Long Beach.

 

DANNY WONG
Financial Systems Consultant
Mr. Wong organizes the financial control and reporting systems at Sugarmade, acting as a consultant to the Corporation where he provides executives with timely and accurate financial statements, ongoing cash flow projections, oversight over accounting and finance operations, as well as design and maintenance of the financial reporting structures. He has over eight years of experience in a wide range of leadership, management, and advisory/auditing positions.

 

He started his career at KPMG advising Fortune 500 companies concerning risk issues. Previously, he was with Saleforce.com where he developed and implemented the firm’s compliance program, subsequently leading a team of 30 individuals within the Procedure to Pay division. Danny is a graduate of the University of California Irvine, where he was awarded a Bachelor of Science degree in economics, with an emphasis in accounting.

 

Source:  http://sugarmade.com/

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