Sugarmade Places on Hold Reverse Split - Plans to Enter Regulated
Cannabis Market as Industry Turmoil Creates
Opportunities
NEW YORK, NY -- January 22, 2020 -- InvestorsHub NewsWire
-- Sugarmade,
Inc. (OTCQB:SGMD)
("Sugarmade", "SGMD", or the "Company"), today announces the
Company has placed a hold on plans to complete a reverse split of
its common shares. Pending a vote
by its board of directors, management believes temporarily holding
the reverse split or canceling the reverse split altogether may be
the best future course of action. The Company is also
announcing its planned entry into the regulated and licensed
portion
of the cannabis marketplace, with an emphasis on the California
distribution and retail sectors.
Jimmy Chan, CEO of Sugarmade commented, "For at least the time
being do not see a reason to move forward with the reverse stock
split. However, we reserve
the right, should circumstances warrant to reactivate the
reverse. We are in the process of modifying our business
strategy to better align with where the cannabis marketplace is
headed and thus our cancellation of the previously proposed
transaction. We
see significantly larger opportunities in the California cannabis
distribution arena and have entered into advanced talks to make a
strategic move into this area."
The cannabis industry in California is rapidly evolving. As
recently as only a few months
ago, the competitive landscape for legal and licensed cultivators,
processors, distributors and retailers was bleak, but the situation
has rapidly improved as the crackdown on illegal market
participants in California has shown great success.
Sugarmade
expects these successes to continue. Sugarmade sees a strong
opportunity to enter this business arena as the environment changes
and as long-time industry participants seek publicly traded
partners.
The Company recently announced the rescission of an
agreement
to acquire a hydroponic equipment supplier. In a filing with
the U.S. Securities & Exchange Commission, Sugarmade outlined
that approximately 1.2 billion common share equivalents will be
returned to the Company's treasury. In addition, the
rescission
is estimated to save Sugarmade approximately $1 million per month
over the next seven months.
Sugarmade's
board of directors has determined the business combination was no
longer viewed as the best shareholder maximization strategy as
industry upheaval
accelerates. Sugarmade has been presented with numerous other
business combination opportunities that its board of directors now
believes are superior and are under consideration.
The Company's board of directors believes entry into the regulated
portion
of the cannabis business sector, which includes hemp and legal THC
cannabis cultivation, processing and marketing, is particularly
appealing due to the large number of assets within that sub-sector
that are currently available for purchase or
acquisition.
Sugarmade has entered into discussion with several such companies
relative to a strategic business combination.
About Sugarmade, Inc.
Sugarmade, Inc. (OTCQB:
SGMD) is a product and branding marketing company investing in
operations and technologies
with disruptive potential. For more information please
reference
www.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.
Corporate Contact:
Jimmy Chan
+1-(888)-982-1628
info@Sugarmade.com