MONROVIA, Calif., April 11, 2019 (GLOBE NEWSWIRE) -- via NetworkWire -- Sugarmade, Inc. (OTCQB: SGMD), a major supplier to the growing hydroponic cultivation sector, today announces the signing of a supply contract with Hempistry, Inc. where the Kentucky-based hemp cultivator is acquiring supplies for its hemp micropropagation operation. Sugarmade expects this supply relationship to be ongoing as Hempistry expands its operations, both domestically and internationally.
Much of the hemp cultivated in North American is not grown from seed, but is rather cloned or propagated from existing hemp plants. The micropropagation process allows for a very large number of plants to be readied simultaneously and ensures the plants that end up in the hemp field are exact genetic copies of desirable mother plants, which is particularly important relative to hemp cultivation. With the boom in hemp cultivation occurring this planting season, many of the supplies required for successful micropropagation operations are in very short supply.
The supply situation is especially tight within the state of Kentucky, which is in the midst of a hemp cultivation boom. Ryan Quarles, Kentucky commissioner of Agriculture, was recently quoted in an interview, “We don't know if industrial hemp will replace tobacco, but we are going to champion it.” According to the commissioner, Kentucky received five times more hemp cultivation applications this year than last, with an estimated 42,000 to 50,000 acres expected to be planted over the coming few months compared to only 16,000 acres last year.
Mr. Jimmy Chan, CEO of Sugarmade and a director of Hempistry, commented, “With at least 42,000 acres of hemp expected to be planted in Kentucky and considering an average plant density per acre of well over 1,000, farmers in Kentucky will need hundreds of millions of clones over the coming years. When these numbers are multiplied over the many other hemp cultivation states, it is easy for anyone to see the strong demand scenario that is quickly developing. We have already received our first shipments of micropropagation supplies and we are in process of making deliveries. Sugarmade plans to significantly expand our operations relative to hemp cultivation.”
Last year, Sugarmade acquired an option to invest up to $1,000,000 in the Hempistry operation at a locked in 2018 level valuation. Privately-held Hempistry operates out of Madisonville, Kentucky and during 2019 cultivation season will engage in both direct cultivation and co-op cultivation activities with local farmers.
About Sugarmade, Inc.
About Sugarmade, Inc. (OTCQB: SGMD): Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade's brands include Zenhydro.com, AthenaUnited.com, CarryOutSupplies.com, and BudLife Cannabis Storage Solutions. For more information on the Company's products, please visit http://www.Sugarmade.com.
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.
For inquiries please contact Jimmy Chan at (888) 982-1628 or info@Sugarmade.com.
SOURCE Sugarmade, Inc.