Sugarmade
Issues Shareholder Letter
on Outlook,
Uplist,
and Expansion
NEW
YORK, November
21,
2019 -- InvestorsHub NewsWire –
Sugarmade, Inc. (OTCQB:SGMD)
("Sugarmade", "SGMD", or the "Company"), a major supplier to the
hydroponic cultivation and hemp sectors, issues
the following letter on behalf of the CEO:
Dear
Valued Shareholder,
First
off, I
wanted to take this opportunity to express our sincere
gratitude
for your commitment and loyalty to our long-term value proposition
and to discuss our current opportunities and our roadmap as we gear
up to execute on the powerful opportunities that lie ahead.
We
are heading toward a huge win right now, and we wouldn't be able to
get there without your continued faith.
The
momentum we have established over recent months is about
commitment. It's about a thesis that we believe is rock solid: the
hydroponics space has massive structural tailwinds
at
its back because it represents a critical answer
to the long-term boom that drives the hemp and hemp-related
marketplace.
That
thesis was once again powerfully reinforced on Wednesday
when lawmakers
in
the
House Judiciary Committee approved
a
Bill that stands
to decriminalize
marijuana at the federal level. The Marijuana Opportunity
Reinvestment and Expungement Act of 2019 (the "MORE Act") passed by
a wide margin with
bipartisan support. Now it will head for a wider House vote and the
on to the Senate. This is just the first step, but the nature in
which this step was taken will create a lot of excitement and
confidence in the big-picture vision. And it is that vision I want
to talk about today.
The
market for hemp and hemp-related products is going to be
significantly larger five years from now than it is today. No one
disagrees with that basic premise. Our model, fundamentally, is
predicated on the idea that this larger structural boom will
contain lots of ups and downs for primary producers, but will be a
much smoother ride for companies able to position as
pick-and-shovels to those producers. As the overall industry
grows,
the
pie gets bigger and bigger for those catering to that industry. And
hydroponics is a natural solution to tightening margins, which puts
us squarely in the game for every part of the cycle.
The
MORE Act is a very exciting step because effectively
removes
marijuana
from the list of federally controlled substances and
turns
over
control to state lawmakers. The
upshot is that solid businesses in that industry will have access
to the normal range of services that other industries thrive on,
including a landscape of banking and investment regulations that
allow for commercial success. The implications of this shift cannot
be understated.
In
short, this a strong and decisive step toward an eventual
legalization process across the entirety of the United
States.
Does
it change our approach? Actually, no. We will continue down the
same path we were on before Wednesday. This legislative process
simply serves to expedite our time horizon for actualizing our
big-picture objectives. We
are committed to a process that will leave Sugarmade as the single
dominant publicly traded player in the hydroponics
space.
That
process is well underway, and it involves strategic M&A
activity and operational execution. A perfect example of this
process is our recently closed acquisition of BZRTH. That move
delivers us an ecommerce
footprint and infrastructure that can't be matched in the
industry
right now, including a best-in-class logistics platform and a 55k
square foot fulfillment center.
We
are in the process of another landmark acquisition that will feed
into this process with a great deal of synergy. This is a simple
act of combinatorial mathematics. The big point is that we know the
long-term reality: gaining dominance in hydroponics now will pay
off massively down the line. That's the
axiomatic
idea. And we are taking steps to realize that vision every
day.
This
is exactly why we are also committed to uplisting
to
one
of the
major
Exchanges.
This is well within reach, and it will have an enormously valuable
impact on our capacity to implement our larger strategies. Part of
that process is a reverse split of our equity.
We
understand that some investors view reverse splits as necessarily
negative events. But that's because, in most cases, they are
undertaken for negative reasons. The
stigma that accompanies reverse stock splits is an association with
dilution or malinvestment. In this case, we are talking about a
completely different dynamic. This is a step taken by a strong
company with a big vision. It represents part of a bold initiative
to drive improved value for shareholders – to significantly
increase the value proposition we offer to our most committed
stakeholders – and to make Sugarmade a household name.
Our
goal is not to deliver you an overnight $4 stock. It's to deliver
you a long-term trend of continuous growth in returns on your
investment. This market is headed for enormous upside. And we have
an opportunity right now to grab that bull by the horns. This is
simply one step along that path.
And I
can't wait to update you every step of the way.
Best
Regards,
Jimmy
Chan, CEO
About
Sugarmade, Inc.
Sugarmade,
Inc. (OTCQB: SGMD) is a product and branding
marketing company investing in operations and technologies with
disruptive potential. The Company is becoming a leading supplier to
the growing hemp industry and is benefitting from the growth of the
hydroponic marketplace. The Company is in the process of acquiring
several leading hydroponic and agricultural supply companies that
are currently producing in excess of $70 million in annual
revenues. Sugarmade is also an investor in fast growing
Hempistry,
Inc., a Kentucky-based cultivator and processor of industrial hemp
and hemp distillates and isolates, and operates
Carryoutsupplies.com a leader provider to the quick service
restaurant industry.
FORWARD-LOOKING
STATEMENTS: This release contains "forward-looking statements"
within the meaning of the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Forward-looking
statements also may be included in other publicly available
documents issued by the Company and in oral statements made by our
officers and representatives from time to time. These
forward-looking statements are intended to provide management's
current expectations or plans for our future operating and
financial performance, based on assumptions currently believed to
be valid. They can be identified by the use of words such as
"anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "would," "could," "will" and other
words of similar meaning in connection with a discussion of future
operating or financial performance. Examples of forward
looking statements
include, among others, statements relating to future sales,
earnings, cash flows, results of operations, uses of cash and other
measures of financial performance.
Because
forward-looking statements relate to the future, they are subject
to inherent risks, uncertainties and other factors that may cause
the Company's actual results and financial condition to differ
materially from those expressed or implied in the forward-looking
statements. Such risks, uncertainties and other factors include,
among others. such as, but not limited to economic conditions,
changes in the laws or regulations, demand for products and
services of the company, the effects of competition and other
factors that could cause actual results to differ materially from
those projected or represented in the forward
looking statements.
Any
forward-looking information provided in this release should be
considered with these factors in mind. We assume no obligation to
update any forward-looking statements contained in this
report.
Corporate
Contact:
Jimmy
Chan
+1-(888)-982-1628
info@Sugarmade.com
Press &
Media Inquiries:
EHC Branding
Agency
Info@EHCBrandingAgency.Com
(626)
MJ-BRAND