- Sugarmade announces $1 million investment in hemp company growing ultra-high CBD industrial hemp
- Sugarmade CEO becomes Hempistry advisor, shareholder
- ‘Lucrative’ supply agreement offers tremendous opportunity in fast-growing sector
One of the largest publicly traded hydroponics supply companies, Sugarmade, Inc. (OTC: SGMD) is joining the ranks of savvy businesses that have chosen to enter the burgeoning hemp market. Last year, the U.S. hemp industry topped out at an impressive $820 million in revenue, and that total is expected to reach more than $1 billion by the end of 2018, with a 14 percent compound annual growth rate forecast through 2022.
Sugarmade is positioning itself to be a power player in the industry with the announcement this month that it will be investing an estimated $1 million in capital in Hempistry, Inc., a Nevada-based company that has already begun planting an ultra-high cannabidiol (CBD) industrial hemp strain in Kentucky (http://cnw.fm/08zpQ). Hempistry has planted more than 100 acres and has signed an exclusive agreement that guarantees the company rights to 23,000 acres of prime farmland to grow the valuable crop.
One of the primary reasons that the Hempistry project is such an attractive entry point for Sugarmade is the hemp grown by the company, which contains high levels of CBD while containing low levels (less than 0.3 percent) of THC. Both are natural compounds found in cannabis, but they create vastly different effects when consumed. CBD is a non-psychoactive compound that doesn’t produce the problematic ‘high’ associated with THC.
The Sugarmade/Hempistry deal doesn’t end there. Sugarmade CEO Jimmy Chan will become an advisor to and shareholder in Hempistry, and Sugarmade has announced plans to sign an agreement with Hempistry for hemp cultivation supplies, as well.
“Demand for industrial hemp and products derived from hemp is soaring with no letup in sight,” Chan noted in a news release. “We expect our direct investment into Hempistry to be accretive to common shareholders and our supply agreement to be lucrative. All of us at Sugarmade see a tremendous opportunity to become a supplier to this fast-growing sector.”
The deal with Hempistry is not Sugarmade’s only recent headline news. Last week, the company also announced its filing of an application to uplist its common shares to the OTCQB Venture Market (http://cnw.fm/8AguM). This move is expected to allow the innovative company to build its visibility and expand liquidity for shareholders without the rigid procedures and requirements that go along with an exchange listing.
In only a few short years, Sugarmade has made its mark in the business world by investing in products and brands with disruptive potential. The company has established business operations in diverse marketplaces, including packaging and paper goods for various industries, as well as agricultural supplies. Sugarmade’s brands include ZenHydro.com, CarryOutSupplies.com, and BudLife.
For more information, visit the company’s website at www.Sugarmade.com
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