Sugarmade:
It's Going to be a Busy 2018 -
Increased Demand as Cannabis Cultivators Receive
Licenses
City of
Industry,Calif.
-- January 18, 2018 -- InvestorsHub
NewsWire -- The January 1, 2018,
legalization of recreational cannabis within the state of
California is already having a positive impact on the businesses
of Sugarmade and BizRight Hydroponics, Inc. The two
companies are currently in process of implementing a master
marketing agreement, creating one of the largest publically traded
cannabis and hydroponics supply companies. While the California market,
considering its strong economic clout is certainly important, many
other states are also now beginning to issue cultivation licenses,
adding additional fuel to the already growing cultivation supply
market.
Mr. Jimmy Chan, CEO of
Sugarmade, commented, "2018 will certainly be very busy for our
Company. We could not be more pleased with the growth we are seeing
from almost all geographic areas, but California is clearly
developing into a marketplace that is exceeding even our very
positive previous expectations."
In California, a cultivator
must first obtain a local cultivation license before applying for a
state license. Through January 13, 2018, the California Department
of Food & Agriculture had issued only 442 temporary cannabis
cultivation licenses, however, there are thousands of
applications
still pending at the city and country
level. Thus, the number of state issued licenses is expected to
grow dramatically over the coming months.
Mr. Chan continued, "We are
especially excited about the increase in business being seen
from California
commercial
growers as both local and state licenses are now being issued. We
are already seeing an increase in demand even though only 442
licenses have been issued thus far by
regulators, but
there are thousands of additional licenses still pending. Nearly
all of these cultivators will need supplies and as one of the
largest suppliers with product lines for both indoor and outdoor
cultivation, we think we are very well positioned to realize
further acceleration in demand. Thus, we are in process of revising
our internal revenue estimates for 2018 and beyond. We expect to
provide formal guidance over the coming weeks."
While the California market
is very exciting, there many other cultivation markets expected to
come online during 2018. States such as Florida, Texas, Arkansas,
New Mexico, Alaska, Vermont and Pennsylvania, among others, are
also experiencing a cultivation license backlog.
Sugarmade is currently
expanding its staffing, especially related to finance and
accounting, in order to prepare for the significant increase in
business the companies are expecting. BizRight produced in excess of $30
million in revenues during 2017, with substantial growth expected
for 2018. Sugarmade expects to provide detailed revenue guidance to
its investors over the coming weeks, but is preliminarily expecting
revenue for 2018 to top $40 million.
BizRight Hydroponic, Inc. is
a leading
marketer and manufacturer of cannabis and hydroponic growth
supplies, which offers a range of hydroponics-related products
including: HPS grow lights, electronic ballasts, HPS Bulbs,
nutrient mixes, environmental control products, pH measurement and
calibration solutions and other cannabis-related grow and
storage products. BizRight operates the ZenHydro.com
website and other e-commerce properties, and sells various products
to distributors and retailers.
Please reference the recent
disclosures recently filed by Sugarmade, which
are available at www.sec.gov. Additional information
can be seen
at www.Sugarmade.com and www.Zenhydro.com.
About Sugarmade,
Inc. (USOTCQB: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,
BudLife
Cannabis Storage
Solutions, CaliGrownSupplies.com,
and
Sriracha
Seasoning
Stix, a
revolutionary culinary seasoning
product.
For more information on the Company's products, please visit
www.Sugarmade.com.
For inquiries please contact
Jimmy Chan
at (888) 982-1628
or
info@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
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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.