Business
Sugarmade Finalizes Terms of Landmark Deal to Acquire Top Hydroponics eCommerce Supplier, Scaling to $37Million Annualized Forward Sales
Sugarmade Finalizes Terms of Landmark Deal to Acquire Top Hydroponics eCommerce Supplier, Scaling to $37Million Annualized Forward Sales.
About this update from Sugarmade, Inc.
[{"type":"text","content":"\n NEW YORK, Oct. 22, 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 announce the finalization of terms between Sugarmade and BZRTH Inc. for a definitive agreement whereby Sugarmade will acquire BZRTH Inc. (“BZRTH”), a leading ecommerce supplier to the rapidly expanding hydroponic agricultural space. The Parties expect the acquisition to be finalized and closed by October 31, 2019. The acquisition will position Sugarmade to book all revenues from both entities, creating a combined entity that, based on most-recent financial estimates, stands to produce $37 million in annual sales and positive cash flow and EBITDA, resulting in Sugarmade becoming one of the largest publicly traded companies in this fast growing sector. “After months of negotiations, we now have robust terms set into place that represent enormous value for Sugarmade shareholders,” commented Jimmy Chan, CEO of Sugarmade. “This acquisition, in itself, will dramatically augment the Company’s top and bottom line numbers and massively expand our overall presence in the booming hydroponics and hemp ecommerce space. Further, it also represents the central piece of our overarching roll-up strategy to position Sugarmade as the dominant pick-and-shovel entity on the hydroponics side catering to producers in the explosive market for hemp and hemp-related crops in North America.” Management notes the investment boom in the production of raw hemp and hemp-related crops has tightened margins for growers through a massive expansion in the sheer number of producers. This process is driving an associated boom in the market for goods and services that improve efficiency in producing these crops as producers compete for market share and return on invested capital. Sugarmade and other companies in the hydroponic supplies markets are perhaps the most natural beneficiaries of this dynamic due to the ability to maximize output relative to inputs – invested capital, time, energy, and resources. According to multiple sources, the global market for hydroponic and hemp cultivation supplies will remain robust for many years.  For example, Maximize Market R...