Sugarmade to Acquire Hydroponic Retailer Hydro4Less Flagship Location Adding to Streak of Planned Acquisitions
MONROVIA, CA -- January 23, 2019 -- InvestorsHub NewsWire -- Sugarmade, Inc. (OTCQB:SGMD), a major supplier to the growing hydroponic cultivation sector, today announces its intent to acquire a retail location of Washington State-based Hydro4Less. The operation is expected to produce approximately $5 million in revenues and to be profitable during calendar 2019. Additionally, via the pending transaction, Sugarmade will gain an option to purchase two additional Hydro4Less retail operations, which are currently producing in excess of $20 million annually. Should all three acquisitions close, Sugarmade will increase its annual revenues by approximately $25 million per year.
This pending acquisition when combined with pending transactions with BizRight, LLC and Athena United, LLC, both of which also operate in the hydroponic cultivation sector, will place Sugarmade among the ranks of the largest cannabis-related revenue producing companies. Throughout these transactions, Sugarmade will remain only as a supplier to the cannabis industry and will not transact in business where cannabis or cannabis derived products are bought or sold.
"Our BizRight marketing arrangement gives us a strong online presence while our Athena United deal gives us exposure to the large commercial growers, which is an area of expected accelerating revenue growth. Hydro4Less rounds out our marketing efforts and expands our marketing footprint in the Pacific Northwest by adding additional resources that are commercially focused, while also contributing a retail walk-in component allowing our customers to not only acquire products quickly, but to also connect with our highly experienced staff," commented Jimmy Chan, CEO of Sugarmade.
Under the terms of the pending agreement, Sugarmade will acquire the Washington state flagship location in an all stock transaction pending mutual due diligence, completion of the definitive agreement and approval by both boards of directors.
Mr. Chan continued, "Sugarmade is expecting to realize exceptional revenue growth this year from all of our hydroponic-related market sectors. We are excited about having the very talented staff of Hydro4Less join the Sugarmade family of companies. We continue to seek additional acquisitions to further boost our already expected robust revenue growth rate."
About Sugarmade, Inc. (OTC:SGMD):
Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade's brands include BizRight, LLC, Athena United, CarryOutSupplies.com, and BudLife Cannabis Storage Solutions. For more information on the Company's products, please visit http://www.Sugarmade.com.
For inquiries please contact Jimmy Chan at (888) 982-1628 or info@Sugarmade.com
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