NEW YORK, Nov. 26, 2019 (GLOBE NEWSWIRE) — via NetworkWire – Sugarmade, Inc. (OTCQB:SGMD) (“Sugarmade”, “SGMD”, or the “Company”), a major supplier to the hydroponic cultivation and hemp sectors, is pleased to provide an update as the Company moves toward an uplisting of shares onto a major US exchange following news that Sugarmade’s direct competitor, GrowGeneration Corp. (NASDAQ:GRWG) (“GrowGen”), announced on Monday, Nov. 25, that its shares have been approved for listing on the Nasdaq Capital Market (“NASDAQ”).
Following its acquisition of BZRTH, Inc. (“BZRTH”), and another acquisition to be announced in the near future, management believes that Sugarmade is very similar to GrowGen in terms of market segment, scale of operations, and financial performance metrics (on an overall, consolidated basis). As a result, the Company believes GrowGen’s move onto the Nasdaq is a very promising signal for Sugarmade as the Company prepares to uplist its own shares.
“The approval of GrowGen shares for the move up onto the Nasdaq market is a great sign for Sugarmade as we prepare to make a similar move,” commented Jimmy Chan, CEO of Sugarmade. “It’s a positive signal about the hydroponics market and about our overall strategy. It’s time for institutional investors to get heavily involved in the pick-and-shovel ancillary markets surrounding the hemp and hemp-related boom. GrowGen has done a great job, and we are hot on their tail right now, and plan to surpass them in the race to number one in the hydroponics space.”
The Company recently completed its acquisition of BZRTH. Including sales brought in by the acquisition, the Company has already booked over $26 million in revenues on a year-to-date basis. The Company anticipates this number to swell to $32 million on sequential strengthening in gross margins and sales into year end. The Company is also in the process of another major M&A transaction that will significantly further boost overall forward financial projections for 2020. Further details will follow soon.
Mr. Chan continued, “Let’s not forget why GrowGen and Sugarmade are both seeing such a strong wave of growth. The market for cultivation of hemp and hemp-related crops is growing at an astounding pace. But supply has caught up with demand, and margins are tightening fast for producers. Hydroponics is a core part of the solution for those producers. Growth is moving from cultivators to ancillary products and services catering to those cultivators. And we are committed to a leadership position as this dynamic continues to unfold.”
The total market capitalization of the Nasdaq Exchange currently stands at $10 trillion U.S. dollars, representing the second largest exchange in the world in terms of market capitalization for shares traded.
About Sugarmade, Inc.
Sugarmade, Inc. (OTCQB: SGMD) is a product and branding marketing company investing in operations and technologies with disruptive potential. The Company is becoming a leading supplier to the growing hemp industry and is benefitting from the growth of the hydroponic marketplace. The Company is in the process of acquiring several leading hydroponic and agricultural supply companies that are currently producing in excess of $70 million in annual revenues. Sugarmade is also an investor in fast growing Hempistry, Inc., a Kentucky-based cultivator, operates Zenhydro.com a leading supplier to the Online Hydroponic Market, and Carryoutsupplies.com a leader provider to the quick service restaurant industry.
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.