Sugarmade: It's Going to be a Busy 2018 - Increased Demand as Cannabis Cultivators Receive Licenses

CITY OF INDUSTRY, California, January 18, 2018 /PRNewswire/ --

The January 1, 2018, legalization of recreational cannabis within the state of California is already having a positive impact on the businesses of Sugarmade (OTCQB: SGMD) and BizRight Hydroponics, Inc. The two companies are currently in process of implementing a master marketing agreement, creating one of the largest publically traded cannabis and hydroponics supply companies. While the California market, considering its strong economic clout is certainly important, many other states are also now beginning to issue cultivation licenses, adding additional fuel to the already growing cultivation supply market.

Mr. Jimmy Chan, CEO of Sugarmade, commented, "2018 will certainly be very busy for our Company. We could not be more pleased with the growth we are seeing from almost all geographic areas, but California is clearly developing into a marketplace that is exceeding even our very positive previous expectations."  

In California, a cultivator must first obtain a local cultivation license before applying for a state license. Through January 13, 2018, the California Department of Food & Agriculture had issued only 442 temporary cannabis cultivation licenses, however, there are thousands of applications still pending at the city and country level. Thus, the number of state issued licenses is expected to grow dramatically over the coming months.

Mr. Chan continued, "We are especially excited about the increase in business being seen from California commercial growers as both local and state licenses are now being issued. We are already seeing an increase in demand even though only 442 licenses have been issued thus far by regulators, but there are thousands of additional licenses still pending. Nearly all of these cultivators will need supplies and as one of the largest suppliers with product lines for both indoor and outdoor cultivation, we think we are very well positioned to realize further acceleration in demand. Thus, we are in process of revising our internal revenue estimates for 2018 and beyond. We expect to provide formal guidance over the coming weeks."

While the California market is very exciting, there many other cultivation markets expected to come online during 2018. States such as Florida, Texas, Arkansas, New Mexico, Alaska, Vermont and Pennsylvania, among others, are also experiencing a cultivation license backlog.

Sugarmade is currently expanding its staffing, especially related to finance and accounting, in order to prepare for the significant increase in business the companies are expecting. BizRight produced in excess of $30 million in revenues during 2017, with substantial growth expected for 2018. Sugarmade expects to provide detailed revenue guidance to its investors over the coming weeks, but is preliminarily expecting revenue for 2018 to top $40 million.

BizRight Hydroponic, Inc. is a leading marketer and manufacturer of cannabis and hydroponic growth supplies, which offers a range of hydroponics-related products including: HPS grow lights, electronic ballasts, HPS Bulbs, nutrient mixes, environmental control products, pH measurement and calibration solutions and other cannabis-related grow and storage products. BizRight operates the ZenHydro.com website and other e-commerce properties, and sells various products to distributors and retailers.

Please reference the recent disclosures recently filed by Sugarmade, which are available at http://www.sec.gov. Additional information can be seen at http://www.Sugarmade.com and http://www.Zenhydro.com.

About Sugarmade, Inc. (OTCQB:SGMD)

Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade's brands include ZenHydro.com, CarryOutSupplies.com, BudLife Cannabis Storage Solutions, CaliGrownSupplies.com, and Sriracha Seasoning Stix, a revolutionary culinary seasoning product. For more information on the Company's products, please visit http://www.Sugarmade.com.

For inquiries please contact Jimmy Chan at +1(888)982-1628 or [email protected] .

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.

For inquiries please contact Jimmy Chan at +1(888)982-1628 or [email protected] .

SOURCE Sugarmade, Inc.