NetworkNewsBreaks – Sugarmade, Inc. (SGMD) Takes
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Posted On: 10/02/2018 6:03:05 PM
NetworkNewsBreaks – Sugarmade, Inc. (SGMD) Takes Steps to Acquire Hydroponic Companies for $45M Revenue Stream
Shares of Sugarmade, Inc. (OTCQB: SGMD) surged 10 percent in early trade, moving on volume of more than 2.5 million, after the hydroponics supply company said it has issued formal proposals to acquire two profitable hydroponic cultivation supply companies in the cannabis sector. Should the acquisitions be successful, the company said it will boost its revenue guidance to $75 million for next year. Sugarmade recently provided 2019 guidance of $30 million.
“These acquisitions will not only very significantly boost our top line revenue growth, but will also expand our distribution across the most important sectors of the fast-growing cannabis marketplace, including the wholesale market, which services brick and mortar retailers and to large commercial cultivation operations, which are rapidly expanding their cultivation footprints. In addition to the revenue growth opportunities, we will also be afforded very meaningful cost savings across many operational functions. In particular, we believe there are strong cost synergies relative to manufacturing, purchasing, international transport, warehousing and shipment to customers. Perhaps most exciting, however, is that these acquisitions will place us among the largest public companies in the booming cannabis sector,” Sugarmade CEO Jimmy Chan stated in the press release.
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
Shares of Sugarmade, Inc. (OTCQB: SGMD) surged 10 percent in early trade, moving on volume of more than 2.5 million, after the hydroponics supply company said it has issued formal proposals to acquire two profitable hydroponic cultivation supply companies in the cannabis sector. Should the acquisitions be successful, the company said it will boost its revenue guidance to $75 million for next year. Sugarmade recently provided 2019 guidance of $30 million.
“These acquisitions will not only very significantly boost our top line revenue growth, but will also expand our distribution across the most important sectors of the fast-growing cannabis marketplace, including the wholesale market, which services brick and mortar retailers and to large commercial cultivation operations, which are rapidly expanding their cultivation footprints. In addition to the revenue growth opportunities, we will also be afforded very meaningful cost savings across many operational functions. In particular, we believe there are strong cost synergies relative to manufacturing, purchasing, international transport, warehousing and shipment to customers. Perhaps most exciting, however, is that these acquisitions will place us among the largest public companies in the booming cannabis sector,” Sugarmade CEO Jimmy Chan stated in the press release.
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
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