NEW YORK, Dec. 20, 2019 (GLOBE NEWSWIRE) — via NetworkWire – Sugarmade, Inc. (OTCQB:SGMD) (“Sugarmade”, “SGMD”, or the “Company”), a major supplier to the hydroponic cultivation and hemp sectors, today announces its entry into the marketplace for hemp extraction and laboratory equipment, one of the fastest-growing areas of the overall hemp industry. The Company additionally announces it has begun shipments of equipment to be installed in one of the largest planned facilities in the eastern portion of the United States.
“We are very pleased to announce we have accepted the initial components from the manufacturer and these components are now in shipping containers en route to Western Kentucky to be installed at what will likely be one of the largest extraction facilities in the eastern part of the United States,” commented CEO Jimmy Chan. “We will begin booking this revenue upon delivery and installation, which is expected to begin in January.”
The ordering corporate entity, East West BioPharma Group, Inc., is in the process of building a hemp extraction and laboratory facility designed to process up to 1,000 liters of hemp distillate per day. The equipment is designed to be ultra-efficient, while still being at the lower end of the cost model on a per liter of distillate extracted basis.
Sugarmade has entered into an agreement with manufacturers located throughout China that have significant experience in designing and manufacturing equipment used to extract essential oils from plants, terpenes, especially medicinal herbs and flowers. The experience in these specific extraction technologies, which has been gained over the decades, is now being brought to bear relative to the extraction of the oils from hemp. In collaboration with Sugarmade, these Chinese companies have increased the scale of the equipment to fit the larger crop sizes associated with hemp cultivation, while maintaining the high levels of efficiency for which these manufacturers have become known throughout Asia.
Sugarmade is entering this business as part of a major business expansion outlined in its recently approved strategic plan. The plan calls for the Company to continue to supply extraction and laboratory equipment into the hemp extraction sub-sector of the marketplace. Sugarmade believes it is especially capable of success in this business segment due to its extensive experience in Asian product sourcing, its strong relationships with manufacturers and its considerable expertise in international logistics.
Mr. Chan continued, “We have been working on this new business opportunity for a considerable number of months with our staff involved in numerous aspects of not only procurement, sourcing and logistics, but also the actual design of the component part of the systems. This has allowed Sugarmade to gain strong levels of experience in this sector, which we believe can be applied to other similar contracts. We are in the process of negotiating an additional similar deal for a second Kentucky extraction facility. We believe this new business will represent a meaningful component of our growth strategy.”
Sugarmade expects additional shipments for its initial Western Kentucky customer to continue through at least the second calendar quarter of 2020. The newly designed equipment was successfully laboratory tested at the factory in China and then disassembled and packaged in containers for transpacific shipment. The first shipment has left the Chinese location and is en route with delivery expected in Western Kentucky during January 2020. The second customer for Sugarmade referenced above has ordered a similar set of extraction and laboratory equipment with the Chinese factory engaged in the final assembly processes. Sugarmade plans to make additional information available concerning this possible secondary order upon final assembly and initial shipment.
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, operates Zenhydro.com, a leading supplier to the Online Hydroponic Market and Carryoutsupplies.com, a leader provider to the quick service restaurant industry.
FORWARD-LOOKING STATEMENTS: This release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management’s current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “would,” “could,” “will” and other words of similar meaning in connection with a discussion of future operating or financial performance. Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company’s actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others. such as, but not limited to economic conditions, changes in the laws or regulations, demand for products and services of the company, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this report.
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