SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 4, 2020
(Exact name of registrant as specified in its charter)
(State or other jurisdiction
750 Royal Oaks Dr., Suite 108
of principal executive offices)
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Item 7.01 Regulation FD Disclosure
Sugarmade Inc., a Delaware corporation (the “Company”) makes the
following disclosures pursuant to Section 13 or 15(d) of The
Securities Exchange Act of 1934, generally referred to as
Regulation FD Disclosure.
On May 4, 2020, the Company informs its shareholders and other
interested parties relative to new purchase orders received for
consumable sanitary supplies and non-medical grade protective gear.
Sugarmade, via its CarryOutSupplies.com operation, has begun to
receive a substantial number of large purchase orders from both
private and public institutions and businesses and in many cases,
has begun to deliver products to the ordering customers.
As of the close of business on May 1, 2020, these purchase orders
totaled in excess of ten million US dollars ($10,000,000).
Considering the Company’s revenue of $4,367,644 and $4,439,324 for
the recently completed fiscal years ending June 30, 2019, and June
30, 2018, respectively, the Company believes the receipt of these
purchase orders is potentially a material event and thus, puts
forth these disclosures pursuant to Regulation FD.
Executives at the Company have identified numerous sources to
supply the products with several factories having available
capacity to meet a substantial portion, if not all, of these
orders. These supply sources include factories in both
Vietnam and Southern China. In many cases, executives at Sugarmade
have long standing relationship with these factories and the
principal operators. While the Company will work toward delivering
on as many of these purchase orders as is possible, airfreight
transportation resources between Asia and Los Angeles, and relative
to other routes, is at a premium with demand generally exceeding
supply. As a result of the current transportation
constraints, the Company may be limited in its ability to fully
deliver on orders being received.
There are numerous others risks to fulfilling the orders received.
These include, but are not limited to availability of financing,
ability for contracted factory operations to produce the products,
access to adequate logistical resource, customs clearance, ability
for the ordering party to pay and risks related to transportation
of finished goods to end customers.
The Company advises all interested parties to reference its
disclosure of Forward-Looking Statements, included herein, and our
other disclosures and risk factors outlined in our periodic filings
with the U.S. Securities & Exchange Commission, including Form
10-K for our most recently ending fiscal year ending on June 30,
FORWARD-LOOKING STATEMENTS: This filing 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. At this time there are no
assurances the Company’s acquisition efforts will be
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
May 4, 2020
/s/ Jimmy Chan
Chief Executive Officer