Sugarmade and BizRight, LLC to Create Largest Public Cannabis
Supply Company
City of Industry, CA -- November 16, 2017 -- InvestorsHub
NewsWire -- Sugarmade, Inc. (OTCQB:
SGMD), is proud to announce its plan to create the world's
largest publically traded cannabis industry supply company.
Sugarmade and BizRight, LLC, one of the premier distributors and
e-commerce marketers to the booming cannabis supply sector, have
entered into a Letter of Intent for a Master Marketing Agreement
where all BizRight products will be offered by Sugarmade. Upon the
effective date of the definitive Master Marketing Agreement, all
revenues for the iPower and all sub-branded products marketed by
BizRight will be recognized by Sugarmade.
"Mr. Jimmy Chan, CEO of Sugarmade commented, "We view the Los
Angeles area as ground zero for the cannabis legalization
revolution and this deal is designed to put Sugarmade and its
shareholders right in the middle of the action. The new Sugarmade
will be far larger than every other publicly traded supplier to the
legal cannabis and hydroponic supply sector and in this business,
size matters. The scale at which will be able to operate will allow
us to lower manufacturing, warehousing, and transportation costs,
and most importantly our cost of capital. This will allow the
access to the capital we need to fund the many other business
opportunities currently available in the growing cannabis
marketplace. We think 2018 is be a very special year, not only for
Sugarmade shareholders, but also for the many participants in this
new and dynamic market sector."
BizRight has been growing rapidly in the cannabis supply sector
for several years. During 2017, BizRight is expected to produce at
least $30 million in revenues and to be profitable. Growth for 2018
to over $40 million in revenue is expected. As compensation for the
Agreement, Sugarmade will pay the owners of BizRight a combination
of cash and common shares in Sugarmade.
"Next year we plan to produce in excess of $45 million in
revenues, which will make Sugarmade one of the premier public
companies in the cannabis market sector, but this does not include
any revenues from the Sriracha Seasoning Stix, Seasoning Stix or
BudLife product lines where there could be significant upside. With
revenue multiples for comparable public companies easily exceeding
4X or 5X next year's revenues, we believe it's easy for most to see
the value we plan to create. Thus, we believe this deal will be
highly accretive and beneficial to current Sugarmade shareholders,
our employees and our trading and manufacturing partners,"
continued Mr. Chan.
While the board of directors and the management team of
Sugarmade believe there is vey strong likelihood of closing the
Master Marketing Agreement and the required financing, there can be
no assurance that any transaction will ultimately be completed.
Sugarmade filed an important disclosure with the U.S. Securities
& Exchange Commission concerning these events and we urge all
parties to access the filing for full details regarding these
potential transactions. The filing can be seen at:
8-K
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 http://www.huyfong.com.
For inquiries please contact Sugarmade at (888)982-1628
or info@Sugarmade.com
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.
For inquiries please contact:
Sugarmade at
(888) 982-1628 or Info@sugarmade.com
SOURCE Sugarmade, Inc.