Sugarmade
Closes
BZRTH
Acquisition
Creating Dominant Entity in $24B
Global Hydroponics
Market
NEW YORK, NY -- October 31, 2019 -- InvestorsHub NewsWire
-- Sugarmade,
Inc. (OTCQB:SGMD)
("Sugarmade", "SGMD", or the "Company"), a major supplier to the
hydroponic cultivation and hemp sectors, is excited to announce the
closing of the Company's acquisition of BZRTH, LLC ("BZRTH"), a
leading ecommerce supplier to the rapidly expanding hydroponic
agricultural space. The
Company expects the new combined entity to drive EBITDA
profitability, net-positive cash flows, and top-line sales of $37
million on a forward basis.
"As of today, Sugarmade is one of the largest publicly traded
hydroponics companies in the world," remarked Jimmy Chan, CEO of
Sugarmade. "The most important idea we want to convey to our
committed shareholders right now is that this move was not a
one-off deal. It's part of a multi-step roll-up strategy designed
to create the dominant force in this market as we look ahead to a
world where hydroponics becomes the difference between success and
failure for producers in the rapidly growing market for hemp and
hemp-related crops in North America."
Management notes that the integration of BZRTH implies the vertical
integration of ecommerce through ZenHydro.com (and several
additional hydroponics ecommerce sales portals) with a 55k sq. ft.
fulfillment center and a market leading logistics platform. The
Company also continues to negotiate with several other entities to
continue to drive its aggressive M&A-based expansion
strategy.
Mr. Chan continued, "We plan to continue to be very aggressive on
the M&A side. This space is extremely ripe for disruption
through consolidation of successful entities. And we have strong
momentum right now to snowball this process by combining and
coordinating undervalued assets into a single dominant market force
that benefits from powerful overlapping growth in ecommerce, hemp,
and hydroponics."
According to recent research from Mordor Intelligence, the Global
Hydroponics Market was valued at $24 billion in 2018 and is
expected to register strong growth over coming years. Maximize
Market Research also forecasts a coming boom in this market space,
driving total annual sales from $26.6 billion in 2017 to $37.7
billion by 2026.
About
Sugarmade, Inc.
Sugarmade, Inc. (OTCQB:
SGMD) is a product and branding marketing company investing in
operations and technologies with disruptive potential. The Company
is becoming a leading supplier to the growing hemp industry and is
benefitting from the growth of the hydroponic marketplace. The
Company is in the process of acquiring several leading hydroponic
and agricultural supply companies that are currently producing in
excess of $70 million in annual revenues. Sugarmade is also an
investor in fast growing Hempistry, Inc., a Kentucky-based
cultivator of industrial hemp, and operates Carryoutsupplies.com a
leader provider to the quick service restaurant
industry.
FORWARD-LOOKING STATEMENTS: This release contains "forward-looking
statements" within the meaning of the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements also may be included in other publicly
available documents issued by the Company and in oral statements
made by our officers and representatives from time to time.
These forward-looking
statements are intended to provide management's current
expectations or plans for our future operating and financial
performance, based on assumptions currently believed to be valid.
They can be identified by the use of words such as "anticipate,"
"intend," "plan," "goal," "seek," "believe," "project," "estimate,"
"expect," "strategy," "future," "likely," "may," "should," "would,"
"could," "will" and other words of similar meaning in connection
with a discussion of future operating or financial performance.
Examples of forward looking statements include, among others,
statements relating to future sales, earnings, cash flows, results
of operations, uses of cash and other measures of financial
performance.
Because forward-looking statements relate to the future, they are
subject to inherent risks, uncertainties and other factors that may
cause the Company's actual results and financial condition to
differ materially from those expressed or implied in the
forward-looking statements. Such risks, uncertainties and other
factors include, among others. such as, but not limited to economic
conditions, changes in the laws or regulations, demand for products
and services of the company, the effects of competition and other
factors that could cause actual results to differ materially from
those projected or represented in the forward looking
statements.
Any forward-looking information provided in this release should be
considered with these factors in mind. We assume no obligation to
update any forward-looking statements contained in this
report.
Corporate
Contact:
Jimmy Chan
+1-(888)-982-1628
info@Sugarmade.com