MONROVIA, California, August 21, 2018 /PRNewswire/ --
Sugarmade, Inc. (OTC: SGMD), one of the largest publicly traded hydroponics supply companies, today announces a new corporate initiative in the booming hemp market. Sugarmade is committing up to $1,0000,000 in capital over the next twelve months to invest in Hempistry, Inc. a privately held Nevada corporation, which has begun planting an ultra-high cannabidiol (CBD) industrial hemp strain in the U.S. State of Kentucky. Additionally, Sugarmade expects to sign an agreement with Hempistry for hemp cultivation supplies. Hempistry has already begun planting and has signed an agreement reserving up to 23,000 acres of prime Kentucky farmland for its exclusive use for hemp cultivation. Additionally, Sugarmade's CEO, Jimmy Chan, announces he has become an advisor to and a shareholder in Hempistry, Inc.
According the Hemp Business Journal, the U.S. Hemp industry produced at least $820 million in revenues during 2017, with growth to over $1 billion for 2018, and an expected 14% compound annual growth rate through 2022. Much of the recent growth has come from the demand for hemp-derived CBD for use in health and wellness products. The strain of industrial hemp being grown by Hempistry is ultra-rich in CDB, but contains less than 0.3% of THC, the psychoactive ingredient found in marijuana. Hempistry has already begun planting and thus far has 100 acres of this high CDB strain under cultivation. In total, Hempistry has optioned 23,000 acres.
Sugarmade's investment into the market for high-CBD hemp is expected to be highly accretive for common shareholders in two ways. First, Sugarmade's investment will be in the form of common shares in Hempistry allowing Sugarmade common shareholders to possibly benefit from any future initial public offering of Hempistry. Second, Sugarmade is expected to sign a supply agreement with Hempistry for cultivation supplies, which would be additive to corporate revenues.
Jimmy Chan, CEO of Sugarmade commented, "Demand for industrial hemp and products derived from hemp is soaring with no let up in sight. We expect our direct investment into Hempistry to be accretive to common shareholders and our supply agreement to be lucrative. All of us at Sugarmade see a tremendous opportunity to become a supplier to this fast growing sector, thus we are today launching our first in a series of activities within the hemp markets. We plan to provide additional details relative to these hemp initiatives over the coming weeks."
Jimmy Chan has also become an advisor and shareholder of Hempistry. Mr, Chan's role within the Hempistry will relate to capital formation and consultation relating to the marketing of the biomass to processors and manufacturers. Mr. Chan is minority shareholder in Hempistry.
About Sugarmade, Inc. (OTC: 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, and BudLife Cannabis Storage Solutions. For more information on the Company's products, please visit http://www.Sugarmade.com.
For inquiries please contact Jimmy Chan at (888) 982-1628 or info@Sugarmade.com.
STATEMENTS: Nothing in the press release is an offering for any investment. This is not an offer to sell or a solicitation of any offer to buy any securities. Offers are made only by prospectus or other offering materials.
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 (888)-982-1628 or info@Sugarmade.com.
SOURCE Sugarmade, Inc.