Sugarmade Eyes Rapid Growth as California Expected to Begin Mass 'Green Lighting' of Annual Cannabis Cultivation Applications

MONROVIA, California, December 6, 2018 /PRNewswire/ --

Sugarmade, Inc. (OTCQB: SGMD) today makes comments on its expected revenue growth in hydroponic related supplies considering the rapidly changing California cannabis cultivation licensing situation. As a result of the expected mass "Green Lighting" of annual cultivation permits, Sugarmade is expecting accelerating revenue growth as large cultivation operations begin purchasing cultivation supplies after receiving annual permits.

The situation relative to annual licenses required for legal cannabis cultivation in California remains fluid, but is expected to change rapidly over the coming weeks. As of the beginning of November 2018, there were approximately 2,547 annual cultivation licenses under review according to CalCannabis, the licensing agency within the state, with very little movement toward clearing the backlog. The approximately 6,000 licenses issued by the three California licensing agencies have been granted on only a temporary basis with expiration expected, according to California law, in January.

The state of California currently lists 1,054 temporary cultivation licenses as "About the Expire". This uncertain status has caused many license holders to hold off on purchasing cultivation supplies. The California licensing agency has now begun issuing a limited number of annual permits and Sugarmade is expecting significant acceleration in licensing over the coming weeks, which the Company believes will result in a wave of purchasing of cultivation supplies.

Jimmy Chan, CEO of Sugarmade commented, "Our customers, especially those in Santa Barbara, Monterey and Humbolt counties, the three most prolific cultivation areas in California, are indicting to us they too are expecting the permitting process to break free shortly and they are thus informing us of their plans to accelerate purchasing. We believe this will add to our already strong expected growth rate. We are seeing the cultivation market increasingly shift to the larger commercial growers and we view these operators as our prime markets. We believe, especially considering the recently announced acquisition of Sky Unlimited, LLC, which focuses primarily on these large cultivation operators, we are optimally positioned to meet this expected wave of purchasing of cultivation supplies."

Sugarmade recently reiterated its annualized revenue guidance for calendar 2019 of $70 million, representing significant growth over previous annual periods.

The list of "About to Expire" California cannabis cultivation licenses can be viewed on the California Department of Agriculture's site at the following link:

https://aca6.accela.com/CALCANNABIS/Cap/CapHome.aspx?module=Licenses

About Sugarmade, Inc. (OTCQB: SGMD)

Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade's online stores include ZenHydro.com, and CarryOutSupplies.com. Also pending Acquisition of AthenaUnited.com a commercial focused wholesaler. For more information on the Company's products please visit http://www.Sugarmade.com.

For inquiries please call (888)-982-1628 or [email protected].

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.

For inquiries please call (888)-982-1628 or [email protected].

SOURCE Sugarmade, Inc.