MONROVIA, California, October 2, 2018 /PRNewswire/ --
Sugarmade, Inc. (OTCQB: SGMD), one of the largest publicly traded hydroponics supply companies, today announces it has issued formal proposals to acquire two hydroponic cultivation supply companies within the fast growing cannabis sector. Sugarmade recently reiterated its 2019 revenue guidance of $30 million representing growth of over 700%, but should these acquisition efforts be successful, the Company would immediately boost its revenue guidance to $75 million for next year, representing one of the fastest revenue growth rates in the cannabis industry. In addition to boosting the top line growth rate, management of Sugarmade believes these acquisitions will also be highly accretive to both overall shareholder value and net income.
Sugarmade has issued two formal acquisition proposals. The first acquisition target is a Southern California-based, major supplier of hydroponic cultivation supplies to the wholesale sector and to large commercial cultivators, which is profitable and cash flow positive, producing in excess of $40 million of revenue per year. Under the terms of the proposal, Sugarmade would acquire the organization for a combination of cash and Sugarmade common stock.
The second is a Washington state-based retailer, which is also profitable and cash flow positive, producing approximately $5 million of revenue per year. Under the terms of the proposal, Sugarmade would issue common stock to acquire the retailer.
Mr. Jimmy Chan, CEO of Sugarmade commented, "These acquisitions will not only very significantly boost our top line revenue growth, but will also expand our distribution across the most important sectors of the fast-growing cannabis marketplace, including the wholesale market, which services brick and mortar retailers and to large commercial cultivation operations, which are rapidly expanding their cultivation footprints. In addition to the revenue growth opportunities, we will also be afforded very meaningful cost savings across many operational functions. In particular, we believe there are strong cost synergies relative to manufacturing, purchasing, international transport, warehousing, and shipment to customers. Perhaps most exciting, however, is that these acquisitions will place us among the largest public companies in the booming cannabis sector."
Relative to the proposed acquisitions, management of the Company and its board of directors believe the acquisitions will be highly accretive to common shareholder value and will significantly strengthen the Company's position in the fast growing hydroponic cultivation and supply market sector.
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.
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 more information on the Company's products, please visit http://www.Sugarmade.com.
For inquiries please contact Jimmy Chan at (888)982-1628 or [email protected].
SOURCE Sugarmade, Inc.