MONROVIA, California, July 26, 2019 /PRNewswire/ -- Sugarmade, Inc. (OTCQB: SGMD), a major supplier to the growing hydroponic cultivation and hemp sectors, today provides an update to its investors relative to two important topics – Status of its investments in Kentucky-based hemp cultivator, Hempistry, Inc. and on the status of its pending acquisition of hydronic cultivation supplier, BZRTH, Inc. ("BZRTH").
Sugarmade announces BZRTH, which is a target acquisition of the Company, completed its audits for previous financial periods. The Company is announcing this audit completion because it believes the completion of the audit is material to the overall process of closing on the BZRTH acquisition, with the closing of the audit being required for the closing of the BZRTH acquisition. While, the Company has taken significant steps toward the closing of BZRTH transaction, overall progress was dependent on: 1) the completion of the BZRTH audit, and 2) availability of funds to close the transaction. Thus far, approximately $1,000,000 has been paid toward closing. The financing plan centered on the filing and effectiveness of a registration statement on SEC Form S-1. The S-1 registration statement was filled on June 26, 2019 and became effective on July 18, 2019.
"The closing of the BZRTH audit provides Sugarmade with several more options for growth and our recently effective S-1 filing open doors for financing options," commented Company CEO, Jimmy Chan. "We are analyzing several of these options in order to select the path for greatest shareholder maximization. We are also pleased to report we have made an initial investment in hemp cultivator Hempistry where Sugarmade will have a direct participation in the profits from this year's hemp crop. Operations in Kentucky are well underway."
Sugarmade also announces the first round of closings relative to its proposed investments in Hempistry, Inc ("Hempistry"). Late last year, the Company announced it had secured an option to invest up to One Million Dollars ($1,000,000) in privately held Hempistry, which began legal hemp cultivation in Western Kentucky last year and is continuing with cultivation this year. Sugarmade exercised its right to begin such investments via its first tranche investment of $190,000 allowing it to receive twelve percent (12%) of the profits of Hempistry's biomass and converted distillate or isolate cannabidiol (CBD) for the 2019 farming season.
About Sugarmade, Inc.
(OTC: SGMD): Sugarmade, Inc. (OTCQB: SGMD) is a product and branding marketing company investing in operations and technologies with disruptive potential. The Company is becoming a leading supplier to the growing hemp and cannabis industries as a non-plant touching provider of cultivation and processing supplies to industry players. The Company is in the process of acquiring several leading hemp and cannabis supply companies that are currently producing in excess of $70 million in annual revenues. Sugarmade is also an investor in fast growing Hempistry, Inc., a Kentucky-based cultivator and processor of industrial hemp and hemp distillates and isolates, and operates Carryoutsupplies.com a leader provider to the quick service restaurant industry.
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.