Sugarmade CEO Expects Golden State Hemp Legislation to Benefit the Industry – Company Prepares First Closing of BZRTH Acquisition
MONROVIA, California, Aug. 13, 2019 -- InvestorsHub NewsWire -- Sugarmade, Inc. (OTCQB: SGMD), a major supplier to the growing hydroponic cultivation and hemp sectors, today announces it is now prepared to complete the first closing of its BZRTH, LLC acquisition. Recently, the Company announced BZRTH had completed its financial audit, which was one of the major items required to close the pending transaction. BZRTH is a major supplier to the hydroponic and hemp cultivation sectors, producing in excess of $30 million in annual revenues.
"It is an exciting time for Sugarmade, especially as the California licensing and legislative agenda continue to show strong promise. We have aggressive expansion plans and both the first closing of BZRTH and the beginning of hemp cultivation operations in conjunction with Kentucky-based Hempistry, Inc. are major milestones for our Company," commented Jimmy Chan, CEO of Sugarmade.
Sugarmade believes the market for hydroponic and hemp cultivation supplies will continue to grow, especially in California. The past few years have seen substantial growth in the California industry, and with that growth came challenges for the state's governing bodies. After many months of delays, California authorities have reportedly issued over 10,000 licenses to producers, processors and retailers. With pending pro-hemp cultivation and pro-CBD in food legislation widely expected to pass in the California Legislature and to be signed into law by California Governor, Gavin Newsome, even more growth could come from the already booming California marketplace.
Mr. Chan continued, "It has always been our belief that the California market would continue to lead the country relative to hydroponic supply sales. With the bottleneck in licensing beginning to be cleared up, we are even more optimistic. When we add the strong opportunities in the hemp industry in other states, we believe our future as a major industry supplier is very bright."
Sugarmade also recently announced commencement of hemp cultivation in conjunction with Hempistry, Inc., of Madisonville, Kentucky. Sugarmade recently announced it had begun to exercise its investment option in the Kentucky hemp cultivator. The hemp being cultivated this year by Hempistry is a fast growing strain that is especially rich in cannabidiol (CBD). The farm is located in Madison County, Kentucky.
The Company is on the process of calling a Special Meeting of shareholders to elect new directors of the Company, including at least two independent directors who have no "material relationship" to the Company, as defined by national stock exchanges. Chairman, Jimmy Chan, in accordance with the Bylaws of the Company, plans to call for the Special Meeting to elect new directors in order to provide the Company with requirements, including requirements for independent directors, as outlined by these national exchanges. Chairman Chan and the board will inform shareholders of the date of the special meeting in a timely manner.
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 processor of industrial hemp and hemp distillates and isolates, and operates Carryoutsupplies.com a leader provider to the quick service restaurant industry.
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