Sugarmade Places on Hold Reverse Split - Plans to Enter Regulated
Cannabis Market as Industry Turmoil Creates
NEW YORK, NY -- January 22, 2020 -- InvestorsHub NewsWire
("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
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
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.
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
The Company recently announced the rescission of an
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
is estimated to save Sugarmade approximately $1 million per month
over the next seven months.
board of directors has determined the business combination was no
longer viewed as the best shareholder maximization strategy as
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
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
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
FORWARD-LOOKING STATEMENTS: This release contains "forward-looking
statements" within the meaning of the safe harbor
of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements also may be included in other publicly
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as, but not limited to economic conditions, changes in the laws or
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effects of competition and other factors that could
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