Business
Sugarmade Executes on $40 Million Definitive Agreement to Acquire Sky Unlimited, LLC Creating Hydroponic Supply Powerhouse
Sugarmade Executes on $40 Million Definitive Agreement to Acquire Sky Unlimited, LLC Creating Hydroponic Supply Powerhouse.
About this update from Sugarmade, Inc.
[{"type":"text","content":"\n\n\n\nSugarmade Executes on $40 Million Definitive Agreement to Acquire Sky Unlimited, LLC Creating Hydroponic Supply Powerhouse\n\n\n\n\n\nSugarmade Executes on $40 Million Definitive Agreement to Acquire Sky Unlimited, LLC Creating Hydroponic Supply Powerhouse\nPR Newswire\nMONROVIA, California, November 1, 2018\n\n\n\nMONROVIA, California, November 1, 2018 /PRNewswire/ --\n\nSugarmade, Inc. (OTCQB:SGMD) today announces the signing of a binding Definitive Agreement to acquire Sky Unlimited, LLC, which through its AthenaUnited.com operations and website offers multiple popular hydroponic brands to several growing agricultural cultivation sectors. As a result of this acquisition, Sugarmade is raising its revenue guidance for calendar 2019 from $30 million to $70 million. Sugarmade expects this acquisition to be highly accretive to common shareholder value.\n\nUnder the terms of the Definitive Agreement, Sugarmade will assume all operations, brand assets, customers and liabilities of Sky Unlimited, and will retain all employees. Sugarmade will issue the owners of Sky Unlimited ten million non-refundable shares of Sugarmade common stock in exchange for a non-shop period agreement, during which final due diligence will be completed. Subject to a successful two-year audit of the Sky Unlimited operations, Sugarmade will pay the owners a combination of cash and common shares equal to the audited revenues realized by Sky Unlimited during the 12-month period preceding the close of the transaction, which is scheduled for January of 2019. It is envisioned these payments of cash and Company shares will total $40 million, but the actual amount will be determined by the revenue performance of the acquired business operations. The specific details of the Definitive Agreement will be outlined in a subsequent filing with the U.S. Securities & Exchange Commission over the coming days.\n\n\"This acquisition will further boost our already very rapid growth rate and is expected to be high accretive to common shareholder value. As a result, we are once again raising our revenue guidance for calendar 2019,\" commented Sugarmade's CEO, Jimmy Chan. \"Sky Unlimited and Athena are complementary to our existing business operations allowing us to not only increase our emphasis on brands, but also to diversify our revenue streams to now include the la...