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Sugarmade Targets $45 Million Revenue Stream for Highly Accretive Acquisitions in Cannabis Supply Sector
Sugarmade Targets $45 Million Revenue Stream for Highly Accretive Acquisitions in Cannabis Supply Sector.
About this update from Sugarmade, Inc.
[{"type":"text","content":"\n\n\n\nSugarmade Targets $45 Million Revenue Stream for Highly Accretive Acquisitions in Cannabis Supply Sector\n\n\n\n\n\nSugarmade Targets $45 Million Revenue Stream for Highly Accretive Acquisitions in Cannabis Supply Sector\nPR Newswire\nMONROVIA, California, October 2, 2018\n\n\n\nMONROVIA, California, October 2, 2018 /PRNewswire/ --\n\nSugarmade, Inc. (OTCQB: SGMD), one of the largest publicly traded hydroponics supply companies, today announces it has issued formal proposals to acquire two hydroponic cultivation supply companies within the fast growing cannabis sector. Sugarmade recently reiterated its 2019 revenue guidance of $30 million representing growth of over 700%, but should these acquisition efforts be successful, the Company would immediately boost its revenue guidance to $75 million for next year, representing one of the fastest revenue growth rates in the cannabis industry. In addition to boosting the top line growth rate, management of Sugarmade believes these acquisitions will also be highly accretive to both overall shareholder value and net income.\n\nSugarmade has issued two formal acquisition proposals. The first acquisition target is a Southern California-based, major supplier of hydroponic cultivation supplies to the wholesale sector and to large commercial cultivators, which is profitable and cash flow positive, producing in excess of $40 million of revenue per year. Under the terms of the proposal, Sugarmade would acquire the organization for a combination of cash and Sugarmade common stock.  \n\nThe second is a Washington state-based retailer, which is also profitable and cash flow positive, producing approximately $5 million of revenue per year. Under the terms of the proposal, Sugarmade would issue common stock to acquire the retailer.\n\nMr. Jimmy Chan, CEO of Sugarmade commented, \"These acquisitions will not only very significantly boost our top line revenue growth, but will also expand our distribution across the most important sectors of the fast-growing cannabis marketplace, including the wholesale market, which services brick and mortar retailers and to large commercial cultivation operations, which are rapidly expanding their cultivation footprints. In addition to the revenue growth opportunities, we will also be afforded very meaningful cost savings across many operational func...