Sugarmade
Enters Hemp
Extraction Equipment Supply Business - Initial Customer
Order En
Route to Mega
Hemp Extraction Facility
NEW
YORK, NY -- December 20, 2019 -- InvestorsHub NewsWire
-- Sugarmade,
Inc. (OTCQB:SGMD)
("Sugarmade",
"SGMD", or the "Company"), a major supplier to the hydroponic
cultivation and hemp sectors, today announces its entry into the
marketplace for hemp extraction and laboratory equipment, one of
the fastest-growing areas of the overall hemp
industry.
The
Company additionally announces it has begun shipments of equipment
to be installed in one of the largest planned facilities in the
eastern portion of the United States.
"We
are very pleased to announce we have accepted the initial
components from the manufacturer and these components are now in
shipping containers en
route
to Western
Kentucky to be installed at what will likely be one of the largest
extraction facilities in the eastern part of the United States,"
commented CEO Jimmy Chan.
"We
will begin booking this revenue upon delivery and installation,
which is expected to begin in January."
The
ordering corporate entity, East West BioPharma
Group,
Inc. is
the process of building a hemp extraction and laboratory facility
designed to process up to 1,000 liters of hemp distillate per
day.
The
equipment is designed to be ultra-efficient, while still being at
the lower end of the cost model on a per liter of distillate
extracted basis.
Sugarmade
has
entered into an agreement with manufacturers located
throughout
China
that have significant experience in designing and manufacturing
equipment used to extract essential oils from plants,
terpenes,
especially
medicinal herbs and flowers.
The
experience in these specific extraction technologies, which has
been gained over the decades, is now being brought to bear relative
to the extraction of the oils from hemp. In collaboration
with Sugarmade,
these Chinese companies have increased the scale of the equipment
to fit the larger crop sizes associated with hemp cultivation,
while maintaining the high levels of efficiency for which these
manufacturers have become known throughout Asia.
Sugarmade
is
entering this business as part of a major business expansion
outlined in its recently approved strategic
plan.
The
plan calls for the Company to continue to supply extraction and
laboratory equipment into the hemp extraction sub-sector of the
marketplace.
Sugarmade
believes
it is especially capable of success in this business segment due to
its extensive experience in Asian product sourcing, its strong
relationships with manufacturers and its considerable expertise in
international logistics.
Mr.
Chan continued, "We have been working on this new business
opportunity for a considerable number of months with our staff
involved in numerous aspects of not only procurement, sourcing and
logistics, but also the actual design of the component part of the
systems.
This
has allowed Sugarmade
to
gain strong levels of experience in this sector,
which we believe can be applied to other similar contracts.
We are in the process of negotiating an additional similar deal for
a second Kentucky extraction facility. We believe this new
business will represent a meaningful component of our growth
strategy."
Sugarmade
expects
additional shipments for its initial Western Kentucky customer to
continue through at least the second calendar quarter of
2020.
The
newly designed equipment was successfully laboratory tested at the
factory in China and then disassembled and packaged in containers
for transpacific shipment.
The
first shipment has left the Chinese location and is
en
route
with delivery expected in Western Kentucky during January
2020. The second customer for Sugarmade
reference
above has ordered a similar set of extraction and laboratory
equipment with the Chinese factory engaged in the final assembly
processes.
Sugarmade
plans
to make additional information available concerning this possible
secondary order upon final assembly and initial
shipment.
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, operates Zenhydro.com a leading
supplier to the Online Hydroponic Market and 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
Press &
Media Inquiries:
EHC Branding
Agency
Info@EHCBrandingAgency.Com
(626)
MJ-BRAND