$SGMD "Our vast experience in the supply of cultivation, harvesting and processing products places Sugarmade in a strong position to increase its revenue and profit outlooks as dozens of new operations prepare to come online," commented Jimmy Chan, CEO of Sugarmade. "Many of our current products apply directly to the industrial hemp market, which is now opening up. Additionally, we will be marketing other products directly to this emerging market, particularly relating to post-harvest processing. We see this an important market in which we plan to be involved."

In addition to sales of hemp market related supplies, Sugarmade also holds an option to invest up to $1 million in Kentucky hemp operation, Hempistry, Inc., which recently successfully harvested its first 100 acre test crop. Plans are currently underway to significantly increase cultivation operations for the 2019 planting season.

Mr. Chan continued, "We are especially pleased with the specific provisions in the Farm Bill that include legalization of cannabidiol products. We think the inclusion of CBD into foods, beverages and other consumer products will continue to grow, creating additional markets for participants in the North American hemp industrial complex. We believe Sugarmade is very well prepared to capitalize on these booming markets."