Sugarmade
Announces Initial Investment in Hempistry
and
Completion of BZRTH Audit
MONROVIA,
CA,
July 26,
2019 - InvestorsHub NewsWire - Sugarmade, Inc.
(OTCQB:SGMD), a major supplier to
the growing hydroponic cultivation and hemp sectors, today provides
an update to its investors relative to two important topics –
Status of
its investments in Kentucky-based hemp cultivator,
Hempistry, Inc. and on the status of its
pending acquisition of hydronic cultivation supplier, BZRTH, Inc.
("BZRTH").
Sugarmade announces
BZRTH, which is a target acquisition of the Company,
completed
its audits for previous financial periods. The Company is
announcing this audit completion because it believes the completion
of the audit is material to the overall process of closing on the
BZRTH acquisition, with the closing of the audit being
required for
the closing of the BZRTH acquisition. While, the Company has
taken significant steps toward the closing of BZRTH transaction,
overall progress was dependent on: 1) the completion of the BZRTH
audit, and 2) availability of funds to close the
transaction. Thus far,
approximately $1,000,000 has been paid toward closing. The
financing plan centered on the filing and effectiveness of a
registration statement on SEC Form S-1. The S-1 registration
statement was filled on June 26, 2019 and became
effective on
July 18, 2019.
"The closing of the
BZRTH audit provides Sugarmade with several more options for growth
and our recently effective S-1 filing open doors for financing
options," commented Company CEO, Jimmy Chan. "We are
analyzing several of these options in order to select the
path for greatest shareholder maximization. We are also
pleased to report we have made an initial investment in hemp
cultivator Hempistry where Sugarmade will have a
direct participation in the profits from this year's hemp
crop.
Operations in Kentucky are well underway."
Sugarmade also
announces the first round of closings relative to its proposed
investments in Hempistry, Inc ("Hempistry"). Late last year, the
Company announced it had secured an option to invest up to
One Million
Dollars ($1,000,000) in privately held Hempistry, which began legal hemp
cultivation in Western Kentucky last year and is continuing with
cultivation this year. Sugarmade exercised its right to begin
such investments via its first tranche investment of $190,000 allowing it to
receive twelve percent (12%) of the profits of Hempistry's biomass and converted
distillate or isolate cannabidiol (CBD) for the 2019 farming
season.
About Sugarmade,
Inc.
(OTC:SGMD): 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 and cannabis industries as a non-plant
touching provider of cultivation and processing
supplies to
industry players. The Company is in the process of acquiring
several leading hemp and cannabis 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.
For inquiries
please contact Jimmy Chan 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.