CITY OF INDUSTRY, California, November 16, 2017 /PRNewswire/ --
Sugarmade, Inc. (OTCQB: SGMD), is proud to announce its plan to create the world's largest publically traded cannabis industry supply company. Sugarmade and BizRight, LLC, one of the premier distributors and e-commerce marketers to the booming cannabis supply sector, have entered into a Letter of Intent for a Master Marketing Agreement where all BizRight products will be offered by Sugarmade. Upon the effective date of the definitive Master Marketing Agreement, all revenues for the iPower and all sub-branded products marketed by BizRight will be recognized by Sugarmade.
Mr. Jimmy Chan, CEO of Sugarmade commented, "We view the Los Angeles area as ground zero for the cannabis legalization revolution and this deal is designed to put Sugarmade and its shareholders right in the middle of the action. The new Sugarmade will be far larger than every other publicly traded supplier to the legal cannabis and hydroponic supply sector and in this business, size matters. The scale at which will be able to operate will allow us to lower manufacturing, warehousing, and transportation costs, and most importantly our cost of capital. This will allow the access to the capital we need to fund the many other business opportunities currently available in the growing cannabis marketplace. We think 2018 will be a very special year, not only for Sugarmade shareholders, but also for the many participants in this new and dynamic market sector."
BizRight has been growing rapidly in the cannabis supply sector for several years. During 2017, BizRight is expected to produce at least $30 million in revenues and to be profitable. Growth for 2018 to over $40 million in revenue is expected. As compensation for the Agreement, Sugarmade will pay the owners of BizRight a combination of cash and common shares in Sugarmade.
"Next year we plan to produce in excess of $45 million in revenues, which will make Sugarmade one of the premier public companies in the cannabis market sector, but this does not include any revenues from the Sriracha Seasoning Stix, Seasoning Stix or BudLife product lines where there could be significant upside. With revenue multiples for comparable public companies easily exceeding 4X or 5X next year's revenues, we believe it's easy for most to see the value we plan to create. Thus, we believe this deal will be highly accretive and beneficial to current Sugarmade shareholders, our employees and our trading and manufacturing partners," continued Mr. Chan.
Sugarmade is in process of finishing its financials for the fiscal year end 2017. The filing of the financials has been delayed due to increased business activity at the Company and resulting delays in completing the financial audit for the year. Management believes the process is nearly completed and expects to file its required reports over the short term.
While the Board of Directors and the management team of Sugarmade believe there is very strong likelihood of closing the Master Marketing Agreement and the required financing, there can be no assurance that any transaction will ultimately be completed. Sugarmade filed an important disclosure with the U.S. Securities & Exchange Commission concerning these events and we urge all parties to access the filing for full details regarding these potential transactions. The filing can be seen at http://www.sec.gov.
Sugarmade, Inc. is an e-commerce oriented product and brand marketing company investing in products and brands with disruptive potential. Sugarmade is a party to a license with Huy Fong Foods, Inc. and has an agreement with Huy Fong Foods, Inc. to use the licensed marks for the limited products and purposes permitted by the license. Seasoning Stix are protected by three issued U.S. patents, which are utilized by Sugarmade under agreement from Wyoming-based, Seasoning Stixs International, LLC. For more information on the Company's products, please visit http://www.Sugarmade.com. Information on Sriracha Seasoning Stix can be viewed at http://www.SrirachaStix.com. Information on Huy Fong Foods, Inc. can be view at http://www.huyfong.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.
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SOURCE Sugarmade, Inc.