Sugarmade to
Acquire Hydroponic Retailer Hydro4Less Flagship Location Adding to
Streak of Planned Acquisitions
MONROVIA, CA
-- January
23, 2019 -- InvestorsHub NewsWire -- Sugarmade, Inc.
(OTCQB:SGMD),
a major supplier to the growing hydroponic cultivation sector,
today announces its intent to acquire a retail location of
Washington State-based Hydro4Less. The operation is expected to
produce approximately $5 million in revenues and to be profitable
during calendar 2019. Additionally, via the pending transaction,
Sugarmade will gain an option to purchase two additional Hydro4Less
retail operations, which are currently producing in excess of $20
million annually. Should all three acquisitions close, Sugarmade
will increase its annual revenues by approximately $25
million per year.
This pending
acquisition when combined with pending transactions with
BizRight, LLC and Athena United, LLC,
both of which also operate in the hydroponic cultivation sector,
will place Sugarmade among the ranks of the largest
cannabis-related revenue producing companies. Throughout these
transactions, Sugarmade will remain only as a supplier to the
cannabis industry and will not transact in business where cannabis
or cannabis derived products are bought or sold.
"Our
BizRight
marketing
arrangement gives us a strong online presence while our Athena
United deal gives us exposure to the large commercial growers,
which is an area of expected accelerating revenue growth.
Hydro4Less rounds out our marketing efforts and expands our marketing
footprint in the Pacific Northwest by adding additional resources
that are commercially focused, while also contributing a retail
walk-in component allowing our customers to not only acquire
products quickly, but to also connect with our highly experienced
staff," commented Jimmy Chan, CEO of
Sugarmade.
Under the terms of
the pending agreement, Sugarmade will acquire the Washington state
flagship location in an all stock transaction pending mutual due
diligence, completion of the definitive agreement and
approval by both boards of directors.
Mr. Chan
continued, "Sugarmade is expecting to
realize exceptional revenue growth this year from all of our
hydroponic-related market sectors. We are excited about having the
very talented staff of Hydro4Less join the
Sugarmade family of companies. We continue to seek additional
acquisitions to further boost our already expected robust revenue
growth rate."
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
BizRight, LLC, Athena United,
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
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
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"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.