Sugarmade in Acquisition Negotiations to Create the Largest
Publically Traded Cannabis Industry Supply Company
City of Industry, CA -- November 01, 2017 -- InvestorsHub
NewsWire -- Sugarmade, Inc. (OTCQB:SGMD),
today announces a realignment of its business direction and
outlines negotiations currently underway to significantly expand
its business operations within the fast growing cannabis sector.
The Company had entered into late stage negotiations with two
companies regarding possible acquisition or merger and has entered
into other discussions with potential financing sources to
facilitate these transactions.
"We are especially excited because the cannabis-related
acquisition will be highly accretive to share value for current
holders of Sugarmade. With California legalization of cannabis only
about 60 days away, we are very pleased to be expanding our
operations in several different ways," commented Jimmy Chan, CEO of
Sugarmade. "The successful completion of this acquisition will make
Sugarmade one of the largest, if not the largest, publically traded
supplier to the hype-growth cannabis sector. We have already begun
to make an impact on the sector through the pending introduction of
BudLife, the world's first patented storage containers for
long-term cannabis storage."
Sugarmade is in late stage acquisition negotiations with a major
distributor of cannabis cultivation and hydroponic supplies. Under
the framework of the current negotiations, Sugarmade would acquire
this privately-held entity through a combination of cash and
Company common shares, with Sugarmade being the surviving entity.
This distributor is currently producing in excess of $30 million
per year in revenues, is growing rapidly, and is profitable.
Sugarmade will be changing its corporate strategic direction
toward e-commerce marketing of innovative and disruptive brands.
Over the past two years, the Company has increasingly turned toward
online marketing for generation of its revenues. The
CarryOutSupplies brand has grown its web presence very
significantly with management holding the belief that online and
e-commerce sales for its custom and generic paper products for the
quick service restaurant industry will continue to expand.
Sugarmade is also in late stage acquisition negotiations with an
importer of custom vanities and fixtures. This entity is a
significant supplier to a major home improvement retailer and
produces revenues in excess of $30 million per year. Under the
framework of the current negotiations, the Company would acquire
this privately held entity through a combination of cash and
Company common shares. Management of Sugarmade believes there could
be significant cost synergies relative to international
importation, logistics, warehousing, shipping, and back office
functions that can be gained through this acquisition. Sugarmade's
management believes this acquisition would be highly accretive and
beneficial to Sugarmade shareholders.
Sugarmade filed an important disclosure with the U.S. Securities
& Exchange Commission concerning these events. The filing can
be seen at: https://www.sec.gov/Archives/edgar/data/919175/000152013817000334/sgmd-20171027_8k.htm
About Sugarmade, Inc. (OTCQB:SGMD)
Sugarmade, Inc. is an E-commerce oriented product and brand
marketing company investing in products and brands with disruptive
potential. Sugarmade is a party to a license with Huy Fong Foods,
Inc. and has an agreement with Huy Fong Foods, Inc. to use the
licensed marks for the limited products and purposes permitted by
the license. Seasoning Stix are protected by three issued U.S.
patents, which are utilized by Sugarmade under agreement
from Wyoming-based, Seasoning Stixs International, LLC. For
more information on the Company's products, please
visit http://www.Sugarmade.com. Information on
Sriracha Seasoning Stix can be viewed at http://www.SrirachaStix.com. Information on Huy Fong
Foods, Inc. can be view at www.huyfong.com.
About Sound Decisions
Sound Decisions is a business development firm founded
by Daniel Parker, a veteran of the ecommerce rapid growth
startup space. Daniel brings extensive startup management
experience to the space from his previous projects. Articles and
podcasts: http://www.ecommercefuel.com/100x-your-business/
Future speaking events: https://ecommcon.com/ecommcon-16264265
For inquiries please contact Sugarmade at (888) 982-1628 or
info@SrirachaStix.com.
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