MONROVIA, Calif., Sept. 20, 2018 (GLOBE NEWSWIRE) -- via NetworkWire – Sugarmade, Inc. (OTC: SGMD), one of the largest publicly traded hydroponics supply companies, today made comments on its recent investment into the industrial hemp market and on the pending Hemp Bill of 2018, which now appears to be on the verge of passage and enactment into federal law.
A recent report published by Brightfield Group has estimated the hemp-derived cannabidiol (CBD) market at $591 million this year, growing to $22 billion by 2022. This estimate is of particular importance to Sugarmade as its recent Kentucky hemp investment was for the cultivation of an ultra-rich CBD strain of industrial hemp.
Mr. Jimmy Chan, CEO of Sugarmade commented, “Cultivation of hemp on the Kentucky site began in early July with even the recent heavy rains not hampering the growth. We are especially excited about the particular strain of hemp that was planted, which is expected to yield up to 14% CBD. Such a strain of product is in significant demand and it is expected that the entire crop will be sold prior to harvest. Our timing on our investment could not have been better considering the pending Farm and Hemp Bills and demand situation, which seems to get tighter almost every day.”
Sugarmade believes the hemp portion of the farm bill will benefit the Company and its shareholders. Sugarmade is committing capital over the next twelve months to invest in Hempistry, Inc., a privately held Nevada corporation, which has begun planting an ultra-high CBD industrial hemp strain in the U.S. state of Kentucky. Additionally, Sugarmade expects to sign an agreement with Hempistry for hemp cultivation supplies. Hempistry began cultivation in early July and has signed an agreement reserving up to 23,000 acres of prime Kentucky farmland for its exclusive use for hemp cultivation.
Passage of the bill will allow for easier interstate transportation of the biomass, which is expected to be harvested later in the fourth quarter of this calendar year. Passage will also enable the operators of the Kentucky operation to gain access to crop insurance, an important risk mitigation component of any farming operation. Additionally, passage is expected to expand the market for CBD, the non-psychoactive component of cannabis.
“We expect the passage of the Farm Bill to further open the markets for industrial hemp and the cannabis components derived from hemp,” said Chan. “It is an exciting time in the hemp industry. We are very pleased to have already made a significant investment into hemp cultivation that we believe will create strong additional value holders for Sugarmade common shares.”
About Sugarmade, Inc. (OTC:SGMD):
Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade's brands include ZenHydro.com, CarryOutSupplies.com, and BudLife Cannabis Storage Solutions. For more information on the Company's products, please visit http://www.Sugarmade.com.
For inquiries please contact Jimmy Chan at (888) 982-1628 or info@Sugarmade.com.
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.
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