MONROVIA, California, June 12, 2019 /PRNewswire/ -- Sugarmade, Inc. (OTCQB: SGMD), a leading provider of hydroponic and other supplies to the agricultural and hemp sectors, today announces a new business initiative, which is expected the expand the Company's revenue base. Over the coming weeks, the Company will be entering the market for hemp extraction equipment and technologies, including several Chinese proprietary technologies, which hold the promise of increasing extraction efficiencies.
"Our staff has done extensive research into the fast growing hemp industry. We continue to see an imbalance between cultivation outputs and extraction capacities within the industry. This leads us to believe the market for extraction services and the equipment required by these extraction companies will continue to accelerate. We plan to not only market several domestic technologies, but also next generation technologies we plan to implement from Southern China, were hemp cultivation and herbal extraction technologies are well ahead of North America," commented Jimmy Chan, CEO of Sugarmade.
According to the U.S. Department of Agriculture, farm production within the United States is expected to fall an additional 6.7% this year on top of already weak market over the past few years. These reductions will likely result in the overall U.S. agricultural production for 2019 being the lowest since 2006. Prices for the commodities that are being produced are also at near record levels. One of the few bright spots in the agricultural sector is industrial hemp, which became legal via the December passage of the U.S. Farm bill. Estimates for hemp production for the 2019 season continue to be revised upward, with major hemp producing states, such as Colorado, Kentucky, Oregon, North Dakota, and others, reporting sharp increases in both cultivation applications and expected acreages. Arcview Market Research, is now predicting the market for Cannabidiol (CBD), which is mainly derived from hemp, will surpass $20 billion by year 2020. Hemp and its by products are growing fast and are one of the few bright spots in the agricultural sector.
Mr. Chan continued, "It is clear the 2019 and 2020 hemp cultivation seasons will be massive. We expect the power balance between cultivators and extractors to continue to heavily favor extractors and we are seeing that part of the industry expand massively to be able to handle the significant amounts of hemp biomass that will be harvested and will ultimately be processed. We are planning to launch an effort to distribute not only legacy extraction equipment to extraction companies, but we also plan to begin distribution of next generation extraction technologies developed in the Chinese province of Yunnan where the hemp industry has existed for more than a thousand years."
About Sugarmade, Inc.
Sugarmade, Inc. (OTCQB: SGMD): Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. For more information on the Company's products visit http://www.Sugarmade.com.
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 (888) 982-1628 or info@Sugarmade.com.
SOURCE Sugarmade, Inc.