- Recently completed $40 million acquisition of Sky Unlimited, LLC in an effort to diversify
- Demand for hydroponically grown plants greater than ever
- Early and healthy investment in hemp solidifies company’s position as a leader in the industry
As hydroponic and cultivation sectors are evolving from home operators to larger commercial cultivators, one company is making strides to stay ahead of the industry curve. Sugarmade, Inc. (OTCQB: SGMD), a leading publicly traded hydroponics and restaurant supply company, recently acquired Sky Unlimited, LLC in a move aimed at staying abreast of market trends, diversifying its brands and broadening its global reach. Sugarmade, with its move into the industrial hemp space, anticipates increased benefits for its shareholders from this acquisition and recently increased its revenue guidance for calendar year 2019 from $30 million to $70 million (http://cnw.fm/H2ZjQ).
As marijuana legalization spreads throughout the United States and across the world, the demand for hydroponic cultivation has never been higher. Sugarmade, one of the largest publicly traded hydroponic supply companies, has been investing in the legal cultivation sector. Hydroponically grown plants grow up to 50 percent faster than plants grown in soil and produce higher yields of better quality, thanks to the nutrient-rich water base involved in the hydroponic growing process (http://cnw.fm/gpP8n).
Currently, the industry is moving away from home operators, instead calling upon commercial cultivators to meet the demand for hydroponically grown plants (http://cnw.fm/g4fLX). After its recent acquisition of Sky Unlimited, Sugarmade is positioned to anticipate even more accelerated growth, as the former’s revenues stem almost entirely from the wholesale market. Furthermore, PRNewswire reports that Sugarmade CEO Jimmy Chan commented, “This acquisition will further boost our already very rapid growth rate,” allowing the company to “diversify revenue streams to now include the larger commercial cultivator operations.” Chan added (http://cnw.fm/dDMa8) that this “is expected to be highly accretive to common shareholder value.”
Aside from its recent acquisition, Sugarmade has also been broadening its hemp-related portfolio by investing in hemp production. The investment has paid off, as this year’s crop promises (http://cnw.fm/ON2Hl) to be “a robust crop with a high market value.” Sugarmade primarily supplies hydroponic equipment for indoor agriculture and was attracted to hemp growing in an effort to diversify its presence in the hemp industry, which has been thriving under recent legislative legalization across the United States. However, instead of merely supplying tools and equipment to the hemp industry, Sugarmade boldly pledged to invest $1 million in capital to Hempistry, Inc., a privately held corporation out of Nevada that has begun planting an ultra-high cannabidiol (CBD) industrial hemp strain in the U.S. state of Kentucky (http://cnw.fm/oN8F8). The hemp industry is predicted to see increased growth in the coming year, and, thanks to insightful planning and smart decision-making, Sugarmade should as well.
For more information, visit the company’s website at www.Sugarmade.com
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