NEW YORK, Oct. 31, 2019 (GLOBE NEWSWIRE) -- via NetworkWire - Sugarmade, Inc. (OTCQB:SGMD) (“Sugarmade,” “SGMD,” or the “Company”), a major supplier to the hydroponic cultivation and hemp sectors, is excited to announce the closing of the Company’s acquisition of BZRTH, LLC (“BZRTH”), a leading ecommerce supplier to the rapidly expanding hydroponic agricultural space. The Company expects the new combined entity to drive EBITDA profitability, net-positive cash flows, and top-line sales of $37 million on a forward basis.
“As of today, Sugarmade is one of the largest publicly traded hydroponics companies in the world,” remarked Jimmy Chan, CEO of Sugarmade. “The most important idea we want to convey to our committed shareholders right now is that this move was not a one-off deal. It’s part of a multi-step roll-up strategy designed to create the dominant force in this market as we look ahead to a world where hydroponics becomes the difference between success and failure for producers in the rapidly growing market for hemp and hemp-related crops in North America.”
Management notes that the integration of BZRTH implies the vertical integration of ecommerce through ZenHydro.com (and several additional hydroponics ecommerce sales portals) with a 55k sq. ft. fulfillment center and a market leading logistics platform. The Company also continues to negotiate with several other entities to continue to drive its aggressive M&A-based expansion strategy.
Mr. Chan continued, “We plan to continue to be very aggressive on the M&A side. This space is extremely ripe for disruption through consolidation of successful entities. And we have strong momentum right now to snowball this process by combining and coordinating undervalued assets into a single dominant market force that benefits from powerful overlapping growth in ecommerce, hemp, and hydroponics.”
According to recent research from Mordor Intelligence, the Global Hydroponics Market was valued at $24 billion in 2018 and is expected to register strong growth over coming years. Maximize Market Research also forecasts a coming boom in this market space, driving total annual sales from $26.6 billion in 2017 to $37.7 billion by 2026.
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 of industrial hemp, 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
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