Sugarmade
Achieves "Penny Stock Exempt" Status Removing Penny Stock Broker
Limitations
NEW YORK, NY -- October 23, 2019 -- InvestorsHub NewsWire
-- Sugarmade,
Inc. (OTCQB:SGMD)
("Sugarmade", "SGMD", or the "Company"), a major supplier to the
hydroponic cultivation and hemp sectors, is proud
to announce that the stock has been awarded "Penny Stock Exempt"
status on OTCmarkets.com in accordance with rules defined by the
Securities and Exchange Commission ("SEC").
"It's
gratifying to see that our
consistent success has delivered Sugarmade from the limitations
associated with Penny
Stock status,
granting
us access to a wider pool of potential investors," stated Jimmy
Chan, CEO of Sugarmade.
Specifically, according
to OTCmarkets.com, Penny
Stock Exempt status means that SGMD stock
is now
exempt from the limitations that accompany any security defined as
a "Penny Stock" according to the SEC under Rule
240.3a51-1 because it meets one of the following tests: 1) A price
of over $5 per share, 2) the issuer has Average Revenue of at least
$6 million for the last 3 years, or 3) the issuer has Net Tangible
Assets in excess of $2 million if the issuer has been in continuous
operations for at least 3 years or $5 million if less than 3
years.
According
to information the
SEC,
"Because of the speculative nature of penny stocks, Congress
prohibited broker-dealers from effecting transactions in penny
stocks unless they comply with the requirements of Section 15(h) of
the Securities Exchange Act of 1934 ("Exchange Act") and the rules
thereunder. These SEC rules provide, among other things, that a
broker-dealer must (1) approve the customer for the specific penny
stock transaction and receive from the customer a written agreement
to the transaction; (2) furnish the customer a disclosure document
describing the risks of investing in penny stocks; (3) disclose to
the customer the current market quotation, if any, for the penny
stock; and (4) disclose to the customer the amount of compensation
the firm and its broker will receive for the trade. In addition,
after executing the sale, a broker-dealer must send to its customer
monthly account statements showing the market value of each penny
stock held in the customer's account."
SGMD shares are now exempt from those limitations.
Mr. Chan continued, "We
have an exceptional strategic plan in place to execute a multi-step
roll-up strategy leaving Sugarmade as one of the biggest publicly
traded companies in the hydroponics space. We
are rapidly accomplishing those objectives. And
we believe we offer investors and
our current shareholders tremendous
value
given
our leadership position in several
explosive intersecting
growth themes,
including ecommerce, hemp, and hydroponics."
The Company is also excited to direct
our
current and prospective investors, and anyone else interested
in Sugarmade
and
its products, to our
social
media feeds. As we move toward a number of exciting upcoming
catalysts and initiatives, please
follow
us on both Facebook (facebook.com/SugarmadeInc)
and Twitter (twitter.com/Sugarmade1)
for important updates.
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 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