Sugarmade, Inc. (OTCQB: SGMD) is a major supplier to the growing hydroponic cultivation sector. Shares jumped 47.02% on Wednesday, February 6, 2019. Over the past month, Sugarmade has seen an average daily volume of 1,496,209 shares. However, on Wednesday, 6,691,670 shares traded hands, equating to $560,700 in dollar volume.
Shares surged Wednesday after SGMD announced it will be exercising the option to acquire BZRTH, LLC. Upon closing of the transaction, “all BZRTH revenues will be reported through Sugarmade significantly further boosting Sugarmade’s revenue base.” Recently, Sugarmade announced the acquisition of Athena United, “a specialist company providing hydroponic supplies to large commercial cultivators”. Sugarmade also announced the intention to acquire Hydro4Less, a hydroponic supplier based in Washington. Jimmy Chan, CEO of the company, commented, “Sugarmade plans to integrate these businesses fully as soon as is possible, making us one of the larger suppliers to this growing marketplace.” Here is the full press release detailing Sugarmade’s exercising of the option to acquire BZRTH:
Sugarmade, Inc. Press Release:
MONROVIA, California, Feb. 6, 2019 /PRNewswire/ — Sugarmade, Inc. (OTCQB: SGMD), a major supplier to the growing hydroponic cultivation sector, today announces its exercise of an option to acquire BZRTH, LLC. Under the terms of the exercise and upon closing, all BZRTH revenues will be reported through Sugarmade significantly further boosting Sugarmade’s revenue base. The acquisition is expected to be highly accretive for common shareholders.
Mr. Jimmy Chan, CEO of Sugarmade commented, “BZRTH is a sister company of BizRight, LLC. During December of 2017, Sugarmade and BizRight signed a Master Marketing Agreement where BizRight’s products would be sold by Sugarmade. We recently modified that agreement to include BZRTH. Our exercise of our option to fully acquire these businesses will allow us to now realize full revenue recognition, boosting our top line growth rate very significantly. We will retain the entire staff of employees, who we warmly welcome to the Sugarmade family.”
This acquisition option exercise comes on the heels of recent announcements that Sugarmade would acquire Athena United, a specialist company providing hydroponic supplies to large commercial cultivators, and the announcement of its intention to acquire Washington state hydroponic supplier Hydro4Less. Athena United is expected to produce approximately $40 million in annual revenues and the single Hydro4Less for location approximately $5 million annually. In addition, relative the Hydro4Less acquisition, Sugarmade acquired an option to acquire two additional locations, which are expected to produce in excess of $20 million annually.
Mr. Chan commented further, “Sugarmade plans to integrate these businesses fully as soon as is possible, making us one of the larger suppliers to this growing marketplace. Additionally, we are in process of vetting other possible acquisitions to further enhanced of the portfolio of hydroponic and cultivation supply products. We are certainly excited about our prospects for the remaining part of this year and into next year.”
About Sugarmade, Inc. (OTCQB: SGMD): Sugarmade, Inc. is a product and brand marketing company
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.
Article By: Andrew Rego