Current Report Filing (8-k)
February 10 2020 - 10:26AM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of
1934
Date of Report (Date of earliest event reported):
February 7, 2020
SUGARMADE, INC.
(Exact name of registrant as specified in its
charter)
Delaware
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000-23446
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94-3008888
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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750 Royal Oaks Dr., Suite 108
Monrovia, CA
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91016
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including
area code: (888) 982-1628
Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see
General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under
the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under
the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section
12(b) of the Act:
Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $0.001 per share
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SGMD
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OTCQB
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Indicate by check mark whether the registrant is an
emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [
]
If an emerging growth company, indicate by check mark
if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. [
]
Item 1.01 Entry into a Material Agreement
On February 7,
2020, the Company signed a definitive agreement (the “Agreement”) with with Indigo Dye Group Corp. (“Indigo”)
with a mailing address of 5600 Warehouse Way, Sacramento, CA 95826, the operator of BudCars Cannabis Delivery Service (“Budcars”),
which provides services in the Sacramento metropolitan area. Under the terms of the Agreement, the Company will purchase a 40%
stake in the Budcars operation for a cash amount of $700,000, and will receive an option to acquire an additional 30%, which upon
exercise will provide a controlling stake in the operation for the Company.
Budcars operates
its delivery service in strict adherence to all state, local and municipal regulations and is fully licensed for operations by
State of California regulators.
The $700,000 investment
will be exclusively utilized for business expansion and operational purposes with zero funds used as consideration for the share
purchase to the owners of BudCars or Indigo. Sugarmade plans to apply its operational expertise to enhance the business operations
of Budcars, including geographic delivery expansion. In addition, the parties plan to enhance business operations via advancement
of strategic vertical integration in order to improve product selection, product quality and profit margins.
The transaction
is considered closed with the Agreement being binding on the Parties. This stock acquisition represents Sugarmade’s first
action relative to its recently announced change of business direction toward higher growth areas of the regulated cannabis sector.
SIGNATURES
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.
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SUGARMADE, INC.
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Date: February 10, 2020
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By:
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/s/ Jimmy Chan
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Name: Jimmy Chan
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Title: Chief Executive Officer
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