MONROVIA, California, Dec. 30, 2019 /PRNewswire/ -- On December 19, 2019, Sugarmade, Inc. (OTCQB: SGMD) ("the Company") first became aware of certain unauthorized promotional activities concerning the Company's common stock, when it was provided by the OTC Markets Group, Inc.'s ("OTC Markets") Issuer Services division with examples of certain such unauthorized, third-party promotional activities.
Prior to being contacted by OTC Markets, the Company was neither aware of any such promotional activities, nor had it engaged or authorized such promotional activities by any third party. The Company was not involved, directly or indirectly, with the creation, distribution or payment of the promotional materials related to the Company and its security. The Company had no awareness or editorial control over the content in the materials. The Company takes its investor relations and marketing practices seriously, including its obligations to release material information which might reasonably be expected to have significant effect on the market price or value of its securities.
The Company learned from the information provided by OTC Markets that entities using the names "Insider Financial," "Penny Stock Locks," "Stock Hideout," and "Stock Wire News" (the "Entities") published emails distributed via the internet touting the Company and its business and recommending the purchase of the Company's common stock. Upon conducting due diligence inquiries regarding the unauthorized promotional activity conducted by the Entities, the Company has determined that the content of the promotions contains incomplete and unvetted information with speculative language regarding the Company's business performance and its shares.
The Company's management also conducted an inquiry and determined that no Company officer, director or beneficial owner of 10% or more of the Company's common stock has purchased or sold any Company shares on the open market within the last 90 days.
The Company releases its press through NetworkNewsWire, a corporate communications firm that publishes news releases authorized and approved by the Company. During the past 12 months, the Company only has engaged the following investor relations, public relations, and marketing related services in connection with its investor outreach efforts: EHC Branding Agency, IR Pub LLC, and FN Press Wire. The Company does not pay any of its investor relations, public relations, or marketing providers with stock compensation. Other than as disclosed above, the Company has not engaged any third-party providers to provide investor relations services, public relations services, marketing, or other related services including the promotion of the Company or its securities in the last twelve months.
In conducting its due diligence inquiries regarding the unauthorized promotional activity conducted by the Entities, the Company determined that EHC Branding Agency may have entered into agreements providing information regarding the Company to such Entities. Therefore, the Company has obtained assurances that EHC Branding Agency has terminated all applicable agreements with the Entities to issue any further information regarding the Company.
The Company encourages those interested in the Company to rely solely on information included in its press releases and its filings and disclosures made with the United States Securities and Exchange Commission (through the EDGAR Database) and on the OTC Markets' website. Information published and authorized by the Company for publication does not recommend the purchase, sale or holding of the Company's securities.
The Company has used convertible note instruments to address financial needs in the last twelve months. All pertinent information regarding the Company's notes, including terms relating to the conversion of such notes, may be found in the Company's filings, and disclosures made with the United States Securities and Exchange Commission.
About Sugarmade, Inc.
Sugarmade, Inc. (OTCQB: SGMD) is a product and branding marketing company investing in operations and technologies with disruptive potential. Headquartered in Monrovia, California, a city within Los Angeles county, Sugarmade has various business operations in diverse marketplaces including packaging and paper goods for various industries, agricultural supplies. The Company is also engaged in becoming a supplier to the burgeoning hemp industry, with an aim of benefitting from the growth of the hydroponic marketplace in that industry. Sugarmade's brands include: ZenHydro.com, CarryOutSupplies.com, and BZRTH, LLC.
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.
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 disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Press & Media Inquiries:
EHC Branding Agency
SOURCE Sugarmade, Inc.