Hydroponics supply company Sugarmade (OTCQB: SGMD) this morning announced its signing of a binding definitive agreement to acquire Sky Unlimited, LLC, which offers a variety of popular hydroponic brands to several growing agricultural cultivation sectors through its AthenaUnited.com operations and website. Sugarmade expects the acquisition to be highly accretive to common shareholder value and is raising its calendar 2019 revenue guidance from $30 million to $70 million. In accordance with the agreement, Sugarmade will assume all Sky Unlimited operations, brand assets, customers and liabilities, and will retain all employees. Sugarmade will issue Sky Unlimited owners ten million non-refundable shares of its common stock in exchange for a non-shop period agreement, during which it will complete final due diligence. Subject to a successful two-year operations audit, Sugarmade will finalize the transaction with payment to the owners in a combination of cash and common shares equaling Sky Unlimited’s realized revenues during the 12-month period preceding the close, scheduled for January 2019. While the actual amount will be determined based on revenue performance, payments of cash and company shares are projected to total $40 million. A filing with the U.S. Securities & Exchange Commission over the coming days will outline specific details of the definitive agreement.
“This acquisition will further boost our already very rapid growth rate and is expected to be high accretive to common shareholder value. As a result, we are once again raising our revenue guidance for calendar 2019,” Sugarmade CEO Jimmy Chan stated in the news release. “Sky Unlimited and Athena are complementary to our existing business operations allowing us to not only increase our emphasis on brands, but also to diversify our revenue streams to now include the larger commercial cultivation operations.”
To view the full press release, visit http://cnw.fm/HkgV9
About Sugarmade, Inc.
Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade’s brands include ZenHydro.com, CarryOutSupplies.com, and BudLife Cannabis Storage Solutions. For more information on the company’s products, please visit www.Sugarmade.com.