Business
Sugarmade to Exercise Option to Acquire BZRTH, LLC Further Expanding its Presence in Cannabis Supplies Sector
Sugarmade to Exercise Option to Acquire BZRTH, LLC Further Expanding its Presence in Cannabis Supplies Sector.
About this update from Sugarmade, Inc.
[{"type":"text","content":"\n\n\n\nSugarmade to Exercise Option to Acquire BZRTH, LLC Further Expanding its Presence in Cannabis Supplies Sector\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nSugarmade to Exercise Option to Acquire BZRTH, LLC Further Expanding its Presence in Cannabis Supplies Sector\nPR Newswire\nMONROVIA, California, Feb. 6, 2019\n\n\n\nMONROVIA, California, Feb. 6, 2019 /PRNewswire/ -- Sugarmade, Inc. (OTCQB: SGMD), a major supplier to the growing hydroponic cultivation sector, today announces its exercise of an option to acquire BZRTH, LLC. Under the terms of the exercise and upon closing, all BZRTH revenues will be reported through Sugarmade significantly further boosting Sugarmade's revenue base. The acquisition is expected to be highly accretive for common shareholders. \nMr. Jimmy Chan, CEO of Sugarmade commented, \"BZRTH is a sister company of BizRight, LLC. During December of 2017, Sugarmade and BizRight signed a Master Marketing Agreement where BizRight's products would be sold by Sugarmade. We recently modified that agreement to include BZRTH. Our exercise of our option to fully acquire these businesses will allow us to now realize full revenue recognition, boosting our top line growth rate very significantly. We will retain the entire staff of employees, who we warmly welcome to the Sugarmade family.\"\nThis acquisition option exercise comes on the heels of recent announcements that Sugarmade would acquire Athena United, a specialist company providing hydroponic supplies to large commercial cultivators, and the announcement of its intention to acquire Washington state hydroponic supplier Hydro4Less.  Athena United is expected to produce approximately $40 million in annual revenues and the single Hydro4Less for location approximately $5 million annually. In addition, relative the Hydro4Less acquisition, Sugarmade acquired an option to acquire two additional locations, which are expected to produce in excess of $20 million annually. \nMr. Chan commented further, \"Sugarmade plans to integrate these businesses fully as soon as is possible, making us one of the...