NetworkNewsBreaks – Sugarmade, Inc. (SGMD) Emplo
Post# of 386
(Total Views: 251)
Posted On: 12/03/2019 5:36:15 PM
NetworkNewsBreaks – Sugarmade, Inc. (SGMD) Employs Aggressive M&A Roll-Up Strategy
Sugarmade (OTCQB: SGMD), a major supplier to the hydroponic cultivation and hemp sectors, is pursuing an aggressive merger and acquisition (“M&A”) roll-up strategy to position itself as a leader in the hydroponics sector. The company is presently in preliminary talks with six hydroponic and agricultural supply targets in the U.S. and central Europe. SGMD is targeting companies with an EBITDA margin of at least 8% and prefers to pay a reasonable multiple to revenue, with 10% in cash and 90% in stock with exact terms dependent on market conditions. Sugarmade recently closed its acquisition of BZRTH Inc. for roughly 1x revenue, integrating an annualized $33 million in revenues and an EBITDA margin of 5%, with revenues expected to continue to rise. The company also intends to revive its October 2018 letter of intent to pursue the acquisition of Sky Unlimited (dba Athena United) and plans to close the deal in Q1 2020. Sky Unlimited has annualized revenues of $33 million to $35 million and EBITDA margin of 11%. SGMD management notes that this strategy aligns with its planned uplisting to either the New York Stock Exchange or the Nasdaq before mid-year 2020. “We continue to position Sugarmade as a dominant entity in a market that promises aggressive growth as margins tighten for larger producers in the hemp and hemp-related space. The return on investment in this space is extremely appealing right now, and we believe that will continue to be the case as we pursue this strategy,” Sugarmade CEO Jimmy Chan stated in the news 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
Sugarmade (OTCQB: SGMD), a major supplier to the hydroponic cultivation and hemp sectors, is pursuing an aggressive merger and acquisition (“M&A”) roll-up strategy to position itself as a leader in the hydroponics sector. The company is presently in preliminary talks with six hydroponic and agricultural supply targets in the U.S. and central Europe. SGMD is targeting companies with an EBITDA margin of at least 8% and prefers to pay a reasonable multiple to revenue, with 10% in cash and 90% in stock with exact terms dependent on market conditions. Sugarmade recently closed its acquisition of BZRTH Inc. for roughly 1x revenue, integrating an annualized $33 million in revenues and an EBITDA margin of 5%, with revenues expected to continue to rise. The company also intends to revive its October 2018 letter of intent to pursue the acquisition of Sky Unlimited (dba Athena United) and plans to close the deal in Q1 2020. Sky Unlimited has annualized revenues of $33 million to $35 million and EBITDA margin of 11%. SGMD management notes that this strategy aligns with its planned uplisting to either the New York Stock Exchange or the Nasdaq before mid-year 2020. “We continue to position Sugarmade as a dominant entity in a market that promises aggressive growth as margins tighten for larger producers in the hemp and hemp-related space. The return on investment in this space is extremely appealing right now, and we believe that will continue to be the case as we pursue this strategy,” Sugarmade CEO Jimmy Chan stated in the news 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
(0)
(0)Sugarmade Inc. (SGMD) Stock Research Links
Scroll down for more posts ▼