Wednesday, March 27, 2019

Sugarmade Inc. (SGMD) Positioned to Benefit as Constraints in Cultivation Create Unique Investment Opportunities

  • As the acreage of cultivated hemp spikes this year, shortages in cultivation supplies are accelerating
  • Companies across the hemp cultivation supply chain are feeling the pinch; while most supply provider are privately-held, publicly traded Sugarmade Inc. stands to benefit via recently announced acquisitions
  • In addition, Sugarmade offers various other brands that add value to additional areas of the hydroponic cultivation arena; as a result, SGMD is poised to become one of the largest publicly traded suppliers
While behemoths such as Tilray (NASDAQ: TLRY), with it pending acquisition of hemp food company Manatoba Harvest; Aurora Cannabis (NYSE: ACB), with its plans to cultivate hemp in New York; and Canopy Growth (NYSE: CGC), via its new partnership with Martha Stewart, continue to grab the main hemp-related headlines across North America, there is another set of industry events that perhaps most investor are failing to notice.
The 2018 hemp cultivation season was significant, with tens of thousands of acres planted, but it is likely to pale in comparison to the acres being planned by the farming and investment communities for 2019. The hemp acreage forecast for 2019 is staggering. Wisconsin recently received more than 2,100 applications to grow or process industrial hemp. Tennessee has had to delay issuing licenses because the number of applications overwhelmed the staff. North and South Dakota, Wyoming, North Carolina and many other states are also swamped with applications. Hemp cultivation conferences have seen standing room only crowds. It’s all but assured that the 2019 hemp crop will be huge.
With this spike in planned planting, hemp cultivation supplies are in high demand, driving up prices and creating a huge opportunity for those offering the pick and shovel supplies of the hemp cultivation sector.
One company, which is also a major supplier to the hydroponic cultivation business, is now seeing rising demand for hemp-related cultivation supplies. Sugarmade Inc. (OTCQB: SGMD), via it recently announced acquisition of Sky Unlimited LLC, which operates the highly successful online supply business at www.AthenaUnited.com, is seeing strong demand for many hemp-related cultivation supplies.
Recently, Sugarmade announced the acquisition of Sky Unlimited LLC, a major supplier to large commercial agricultural cultivation operations. The acquisition is anticipated to generate new revenue streams from wholesale and commercial clients in both the traditional hydroponic markets and industrial hemp.
In a news release, Jimmy Chan, CEO of Sugarmade, noted that Sky Unlimited recently received new shipments of many critical grow supplies for the booming hemp cultivation sector; nonetheless, farmers are advised to order as soon as possible. Many items are experiencing long lead times, and backorders are growing. It’s possible that many cultivators will not be able to meeting their planting goals due to lack of materials to support cultivation.
Sugarmade recently announced its planned acquisition of Sky Unlimited, and it is working to close the transaction. Combined with other announced acquisitions, Sugarmade is predicting very strong revenue growth of up to $70 million in annualized revenues, which would make SGMD one of the largest suppliers to the cannabis Industry.
For more information, visit the company’s website at www.Sugarmade.com
NOTE TO INVESTORS: The latest news and updates relating to SGMD are available in the company’s newsroom at http://nnw.fm/SUGAR
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