- SGMD is commencing hemp cultivation by exercising an investment option in Hempistry Inc.
- Hempistry has a site in Madisonville, Hopkins County, Kentucky, where it is cultivating a fast-growing strain of hemp that’s rich in cannabidiol
- Hemp Business Journal reports that hemp generated more than $1 billion in revenues in the U.S. in 2018; the market is projected to reach $1.9 billion by 2022
Sugarmade Inc. (OTCQB: SGMD), a supplier of hydroponic and cultivation equipment to operators in the booming industrial hemp sector, has commenced hemp cultivation with Hempistry Inc. in Madison County, Kentucky. Sugarmade also announced that it is exercising its investment option in Hempistry as it intensifies its supplier and investor roles in the market (http://cnw.fm/uAeX4).
Hempistry is cultivating a fast-growing strain of hemp that’s rich in cannabidiol. Although Sugarmade is not in the hemp cultivation business itself, the company has a business model focused on supporting and supplying hemp industry cultivators.
According to Hemp Business Journal, the hemp market in the Unites States was estimated to reach more than $1 billion in 2018, with growth forecasts calling for a 14.4 percent five-year CAGR to $1.9 billion through 2022 (http://cnw.fm/nhHU5). Hemp-derived CBD is projected to be the leading category of seven different sectors of hemp-based product sales by 2022.
Sugarmade CEO Jimmy Chan said in a news release (http://cnw.fm/mRK0s) that SGMD has “multiple options for growth, while (its) recently effective S-1 filing expands (Sugarmade’s) ability to finance the many initiatives in front of the company.” SGMD is exploring the next generation of hemp-processing technology. The intersection of rising demand and the legal relief provided by the passage of the 2018 Farm Bill is expected to result in a peak industrial hemp crop in 2019. Hemp production is flourishing in Kentucky, as it leads the nation in quantity of cultivated acres, and SGMD’s commitment to the state is evident through its relationships with cultivators and suppliers like Hempistry and BZRTH.
Despite hemp’s current desirability in the United States, the crop has not always been so popular. It had been cultivated for its fibers for centuries before falling out of style in the 20th century, when it became entangled with efforts to criminalize drugs. As American businesses are getting into the hemp extraction market, they are finding themselves ill-equipped, lacking the advanced technology and expertise to produce on a large scale. Despite the industry’s dearth of technological advancement, Sugarmade has set itself up as an emerging leader in providing hemp extraction equipment. China has a more advanced hemp fiber industry, and SGMD has been working with Chinese extractors to usher in the newest technologies in hemp extraction (http://cnw.fm/T7rRq). The company now has the ability to supply high efficiency extraction equipment but is exclusively working with a limited number of ‘mega producers’.
Based in the Los Angeles-suburb of Monrovia, California, Sugarmade is a hydroponics and cultivation supply company that’s committed to supporting the industrial hemp sector. The company is also a product and brand marketing firm with numerous operations, such as packaging and paper goods for diverse industries.
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
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