HempNewsBreaks – 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.

To view the full press release, visit http://cnw.fm/pnl6S

About Sugarmade, Inc.

Sugarmade, Inc. (OTCQB: SGMD) is a product and branding marketing company investing in operations and technologies with disruptive potential. The Company is becoming a leading supplier to the growing hemp industry and is benefitting from the growth of the hydroponic marketplace. The Company is in the process of acquiring several leading hydroponic and agricultural supply companies that are currently producing in excess of $70 million in annual revenues. Sugarmade is also an investor in fast growing Hempistry, Inc., a Kentucky-based cultivator of industrial hemp, and operates Carryoutsupplies.com a leader provider to the quick service restaurant industry. For more information, visit the company’s website at www.Sugarmade.com.

NOTE TO INVESTORS: The latest news and updates relating to SGMD are available in the company’s newsroom at http://cnw.fm/SUGAR

About HempWireNews

HempWireNews (HWN) is a dedicated information provider focused on (1) aggregating hemp-related news, (2) issuing HempNewsBreaks designed to update investors on the latest developments in the hemp market, (3) enhancing corporate news releases, (4) providing full-service distribution and social media offerings to public and private client-partners and (5) designing and implementing all-inclusive corporate communication solutions. HNW is strategically positioned within the rapidly expanding hemp sector with a team of journalists working to help a growing roster of public and private companies reach a wide audience of investors, consumers and members of the media. We leverage a vast network of more than 5,000 key syndication outlets to deliver unparalleled visibility, recognition and content to the hemp industry. HempWireNews (HWN) is where HEMP news, content and information converge.

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