Issues Shareholder Letter on Outlook, Uplist, and Expansion



NEW YORK, November 21, 2019 -- InvestorsHub NewsWire – Sugarmade, Inc. (OTCQB:SGMD) ("Sugarmade", "SGMD", or the "Company"), a major supplier to the hydroponic cultivation and hemp sectors, issues the following letter on behalf of the CEO:


Dear Valued Shareholder,


First off, I wanted to take this opportunity to express our sincere gratitude for your commitment and loyalty to our long-term value proposition and to discuss our current opportunities and our roadmap as we gear up to execute on the powerful opportunities that lie ahead. We are heading toward a huge win right now, and we wouldn't be able to get there without your continued faith.


The momentum we have established over recent months is about commitment. It's about a thesis that we believe is rock solid: the hydroponics space has massive structural tailwinds at its back because it represents a critical answer to the long-term boom that drives the hemp and hemp-related marketplace.


That thesis was once again powerfully reinforced on Wednesday when lawmakers in the House Judiciary Committee approved a Bill that stands to decriminalize marijuana at the federal level. The Marijuana Opportunity Reinvestment and Expungement Act of 2019 (the "MORE Act") passed by a wide margin with bipartisan support. Now it will head for a wider House vote and the on to the Senate. This is just the first step, but the nature in which this step was taken will create a lot of excitement and confidence in the big-picture vision. And it is that vision I want to talk about today.


The market for hemp and hemp-related products is going to be significantly larger five years from now than it is today. No one disagrees with that basic premise. Our model, fundamentally, is predicated on the idea that this larger structural boom will contain lots of ups and downs for primary producers, but will be a much smoother ride for companies able to position as pick-and-shovels to those producers. As the overall industry grows, the pie gets bigger and bigger for those catering to that industry. And hydroponics is a natural solution to tightening margins, which puts us squarely in the game for every part of the cycle.


The MORE Act is a very exciting step because effectively removes marijuana from the list of federally controlled substances and turns over control to state lawmakers. The upshot is that solid businesses in that industry will have access to the normal range of services that other industries thrive on, including a landscape of banking and investment regulations that allow for commercial success. The implications of this shift cannot be understated.


In short, this a strong and decisive step toward an eventual legalization process across the entirety of the United States.


Does it change our approach? Actually, no. We will continue down the same path we were on before Wednesday. This legislative process simply serves to expedite our time horizon for actualizing our big-picture objectives. We are committed to a process that will leave Sugarmade as the single dominant publicly traded player in the hydroponics space.


That process is well underway, and it involves strategic M&A activity and operational execution. A perfect example of this process is our recently closed acquisition of BZRTH. That move delivers us an ecommerce footprint and infrastructure that can't be matched in the industry right now, including a best-in-class logistics platform and a 55k square foot fulfillment center.


We are in the process of another landmark acquisition that will feed into this process with a great deal of synergy. This is a simple act of combinatorial mathematics. The big point is that we know the long-term reality: gaining dominance in hydroponics now will pay off massively down the line. That's the axiomatic idea. And we are taking steps to realize that vision every day.


This is exactly why we are also committed to uplisting to one of the major Exchanges. This is well within reach, and it will have an enormously valuable impact on our capacity to implement our larger strategies. Part of that process is a reverse split of our equity.


We understand that some investors view reverse splits as necessarily negative events. But that's because, in most cases, they are undertaken for negative reasons. The stigma that accompanies reverse stock splits is an association with dilution or malinvestment. In this case, we are talking about a completely different dynamic. This is a step taken by a strong company with a big vision. It represents part of a bold initiative to drive improved value for shareholders – to significantly increase the value proposition we offer to our most committed stakeholders – and to make Sugarmade a household name.


Our goal is not to deliver you an overnight $4 stock. It's to deliver you a long-term trend of continuous growth in returns on your investment. This market is headed for enormous upside. And we have an opportunity right now to grab that bull by the horns. This is simply one step along that path.


And I can't wait to update you every step of the way.



Best Regards,

Jimmy Chan, CEO




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 a leader provider to the quick service restaurant industry.


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.



Corporate Contact:

Jimmy Chan




Press & Media Inquiries:

EHC Branding Agency


(626) MJ-BRAND


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