PALM BEACH, Florida, October 2, 2018 /PRNewswire via COMTEX/ — PALM BEACH, Florida, October 2, 2018 /PRNewswire/ —
As 2018 heads into the fourth quarter, Cannabidiol – CBD has confidently asserted itself as the most valuable market within the rapidly emerging cannabis industry. With a rising number of various CBD products available in mainstream markets, consumers are spending more on CBD products than ever before. The Brightfield Group estimates the space will top $22 billion within the next 4 years, making it one of the more enticing spaces from an opportunity standpoint. Forces that are anticipated to continue driving growth within the CBD space include increased competition, product diversification and higher levels of investment. Active Companies from around the market with current developments this week include: Sugarmade, Inc. SGMD, +3.51% Medical Marijuana Inc. MJNA, -1.00% Hemp Inc. HEMP, -2.12% India Globalization Capital, Inc. IGC, -36.82% Neptune Wellness Solutions Inc. NEPT, +0.96%
Sugarmade, Inc. (otcpk:SGMD) BREAKING NEWS: Sugarmade, one of the largest publicly traded hydroponics supply companies, today announces it has issued formal proposals to acquire two hydroponic cultivation supply companies within the fast growing cannabis sector. Sugarmade recently reiterated its 2019 revenue guidance of $30 million representing growth of over 700%, but should these acquisition efforts be successful, the Company would immediately boost its revenue guidance to $75 million for next year, representing one of the fastest revenue growth rates in the cannabis industry. In addition to boosting the top line growth rate, management of Sugarmade believes these acquisitions will also be highly accretive to both overall shareholder value and net income.
Sugarmade has issued two formal acquisition proposals. The first acquisition target is a Southern California-based, major supplier of hydroponic cultivation supplies to the wholesale sector and to large commercial cultivators, which is profitable and cash flow positive, producing in excess of $40 million of revenue per year. Under the terms of the proposal, Sugarmade would acquire the organization for a combination of cash and Sugarmade common stock.
The second is a Washington state-based retailer, which is also profitable and cash flow positive, producing approximately $5 million of revenue per year. Under the terms of the proposal, Sugarmade would issue common stock to acquire the retailer.
Mr. Jimmy Chan, CEO of Sugarmade commented, “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.”
Relative to the proposed acquisitions, management of the Company and its board of directors believe the acquisitions will be highly accretive to common shareholder value and will significantly strengthen the Company’s position in the fast growing hydroponic cultivation and supply market sector.Read this and more news for Sugarmadeat:http://www.financialnewsmedia.com/news-sgmd
I n the industry developments and happenings in the market this week include:
Medical Marijuana Inc. (otcpk:MJNA) recently announced that former Dallas Cowboys offensive lineman and Super Bowl champion Derek Kennard has become a spokesperson for its subsidiary Kannaway®to help spread awareness on the benefits of cannabidiol (CBD) for athletes and active consumers. “We look forward to working with Derek Kennard to continue our goal of spreading awareness and increasing public education about the health benefits of CBD,” said Kannaway® CEO Blake Schroeder. “Kennard is just one of many who have seen amazing health results while using CBD oil and we aim to use his story to inspire others.”
Hemp Inc. (otcpk:HEMP) recently announced that its majority-owned hemp cultivation and processing company, Local Processing Center, Inc. (LPC) in Medford, Oregon, has begun processing the harvest of more than 100,000 pounds of industrial hemp from the first of many farms they have contracted with in that area (which also includes many of their own hemp farms). Hemp, Inc. announced Sept. 6 that it had entered into a majority ownership agreement with JNV Farms LLC for the Medford, Oregon-based LPC. Hemp, Inc. has created strategic partnerships with farmers across the state to provide them with services including drying, curing and storing industrial hemp. Hemp, Inc. maintains the first right of refusal to purchase the hemp, and will also act as liaison between manufacturing companies and farmers looking to sell their crop in instances where Hemp, Inc. declines to purchase.
India Globalization Capital, Inc. IGC, -36.82% recently announced that it has executed a distribution and partnership agreement for several products including a sugar free, energy drink called ‘Nitro G’. IGC will pay 797,000 shares of restricted, unregistered, common stock, for a 10-year agreement, with an option for multiple 5-year extensions, for the rights to market the products in the U.S., Canada, Mexico and South America and exclusive global rights to all developed CBD-infused products. IGC plans to create a branded, hemp/CBD-infused version of the formulation that addresses market demand for energy drinks with the inclusion of healthy properties derived from hemp including CBD.
Neptune Wellness Solutions Inc. NEPT, +0.96% recently announced the appointment of Caroline Lavoie as Director of Corporate Affairs for the company. Caroline brings over 13 years of successful public affairs and senior management experience in cannabis, finance, and manufacturing to her new role. Most recently, Caroline was a Senior Consultant at National Public Relations where she led the cannabis practice for the Montreal office and advised key players of the Canadian cannabis sector as well as several large companies in Canada and the U.S. in a variety of sectors. Caroline holds degrees from both McGill University and the Institut d’Études Politiques in Paris and has a master’s degree in public policy. In her role, Caroline will provide leadership in the development of Neptune’s public affairs strategy, direct issues and communications through cannabis industry associations, and manage relations with Quebec and Canadian governments..
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