Business
Sugarmade in Acquisition Negotiations to Create the Largest Publically Traded Cannabis Industry Supply Company
Sugarmade in Acquisition Negotiations to Create the Largest Publically Traded Cannabis Industry Supply Company.
About this update from Sugarmade, Inc.
[{"type":"text","content":"\n\n\n\nSugarmade in Acquisition Negotiations to Create the Largest Publically Traded Cannabis Industry Supply Company\n\n\n\n\n\nSugarmade in Acquisition Negotiations to Create the Largest Publically Traded Cannabis Industry Supply Company\nPR Newswire\nCITY OF INDUSTRY, California, November 1, 2017\n\n\n\nCITY OF INDUSTRY, California, November 1, 2017 /PRNewswire/ --\n\nSugarmade, Inc. (OTCQB: SGMD), today announces a realignment of its business direction and outlines negotiations currently underway to significantly expand its business operations within the fast growing cannabis sector. The Company had entered into late stage negotiations with two companies regarding possible acquisition or merger and has entered into other discussions with potential financing sources to facilitate these transactions.  \n\n\"We are especially excited because the cannabis-related acquisition will be highly accretive to share value for current holders of Sugarmade. With California legalization of cannabis only about 60 days away, we are very pleased to be expanding our operations in several different ways,\" commented Jimmy Chan, CEO of Sugarmade. \"The successful completion of this acquisition will make Sugarmade one of the largest, if not the largest, publically traded supplier to the hype-growth cannabis sector. We have already begun to make an impact on the sector through the pending introduction of BudLife™, the world's first patented storage containers for long-term cannabis storage.\"\n\nSugarmade is in late stage acquisition negotiations with a major distributor of cannabis cultivation and hydroponic supplies. Under the framework of the current negotiations, Sugarmade would acquire this privately-held entity through a combination of cash and Company common shares, with Sugarmade being the surviving entity. This distributor is currently producing in excess of $30 million per year in revenues, is growing rapidly, and is profitable.\n\nSugarmade will be changing its corporate strategic direction toward e-commerce marketing of innovative and disruptive brands. Over the past two years, the Company has increasingly turned toward online marketing for generation of its revenues. The CarryOutSupplies brand has grown its web presence very significantly with management holding the belief that online and e-commerce sales for its custom an...