Sugarmade
Launchs Industrial
Hemp and CBD
Initiative
Monrovia, CA
-- August
21, 2018 --
InvestorsHub NewsWire -- Sugarmade,
Inc. (SGMD), one
of the
largest publicly traded hydroponics supply
companies, today
announces a
new
corporate
initiative
in
the
booming hemp market.
Sugarmade
is committing up to $1,0000,000 in capital
over the next twelve months to invest in Hempistry,
Inc. a privately held
Nevada
corporation, which has begun planting an ultra-high cannabidiol
(CBD) industrial hemp strain in the U.S. State of
Kentucky. Additionally, Sugarmade expects to sign an agreement
with Hempistry
for hemp
cultivation supplies. Hempistry
has
already begun planting and has signed an agreement reserving up to
23,000 acres
of prime
Kentucky farmland for its exclusive use
for hemp cultivation. Additionally,
Sugarmade's
CEO,
Jimmy Chan, announces he has become an advisor to
and a
shareholder in Hempistry,
Inc.
According the Hemp
Business Journal, the U.S. Hemp industry produced at least $820
million in revenues during 2017, with growth to over $1
billion for
2018, and an expected 14%
compound annual growth rate
through
2022. Much of the recent growth has come from the
demand
for hemp-derived CBD for use in health and wellness products. The
strain of industrial hemp being grown by Hempistry
is
ultra-rich in CDB, but contains
less than 0.3% of
THC, the psychoactive
ingredient found in marijuana.
Hempistry
has
already begun planting and thus far
has 100 acres of this
high CDB strain
under
cultivation. In total, Hempistry
has
optioned 23,000
acres.
Sugarmade's
investment into
the market for high-CBD
hemp is expected to be highly accretive
for common shareholders in two
ways. First,
Sugarmade's
investment
will be
in the form of common shares
in Hempistry
allowing
Sugarmade
common
shareholders to possibly
benefit
from any future
initial
public offering of Hempistry.
Second,
Sugarmade is expected to sign a supply agreement with
Hempistry
for
cultivation supplies, which
would be additive
to corporate
revenues.
Jimmy Chan, CEO of
Sugarmade commented, "Demand for industrial
hemp and products derived from hemp is soaring with no
let up in sight. We expect our direct
investment into Hempistry
to be
accretive to common shareholders and our supply
agreement to be lucrative. All of us at
Sugarmade see a tremendous opportunity to become a supplier to
this fast growing
sector,
thus we are today launching our first
in a series of
activities within the hemp markets. We plan to provide
additional details relative to
these hemp initiatives over
the coming weeks."
Jimmy Chan has also
become an advisor and shareholder of Hempistry.
Mr, Chan's role within
the Hempistry
will
relate to capital formation and consultation
relating to the marketing of the biomass to processors and
manufacturers. Mr. Chan is minority shareholder in
Hempistry.
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 ZenHydro.com, 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.
STATEMENTS:
Nothing
in the press release is an offering for any investment.
This is
not an offer to sell or a solicitation of any offer to buy any
securities. Offers are made only by prospectus or other offering
materials.
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
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"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
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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.
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these factors in mind. We assume no obligation to update any
forward-looking statements contained in this report.