- As the
acreage of cultivated hemp spikes this year, shortages in cultivation
supplies are accelerating
- Companies
across the hemp cultivation supply chain are feeling the pinch; while most
supply provider are privately-held, publicly traded Sugarmade Inc. stands
to benefit via recently announced acquisitions
- In
addition, Sugarmade offers various other brands that add value to
additional areas of the hydroponic cultivation arena; as a result, SGMD is
poised to become one of the largest publicly traded suppliers
While behemoths such as Tilray (NASDAQ: TLRY), with it
pending acquisition of hemp food company Manatoba Harvest; Aurora Cannabis
(NYSE: ACB), with its plans to cultivate hemp in New York; and Canopy Growth
(NYSE: CGC), via its new partnership with Martha Stewart, continue to grab the
main hemp-related headlines across North America, there is another set of
industry events that perhaps most investor are failing to notice.
The 2018 hemp cultivation season was significant, with tens
of thousands of acres planted, but it is likely to pale in comparison to the
acres being planned by the farming and investment communities for 2019. The
hemp acreage forecast for 2019 is staggering. Wisconsin recently received more than
2,100 applications to grow or process industrial hemp. Tennessee has had to
delay issuing licenses because the number of applications overwhelmed the
staff. North and South Dakota, Wyoming, North Carolina and many other states
are also swamped with applications. Hemp cultivation conferences have seen
standing room only crowds. It’s all but assured that the 2019 hemp crop will be
huge.
With this spike in planned planting, hemp cultivation
supplies are in high demand, driving up prices and creating a huge opportunity
for those offering the pick and shovel supplies of the hemp cultivation sector.
One company, which is also a major supplier to the
hydroponic cultivation business, is now seeing rising demand for hemp-related
cultivation supplies. Sugarmade Inc. (OTCQB: SGMD), via it recently announced
acquisition of Sky Unlimited LLC, which operates the highly successful online
supply business at www.AthenaUnited.com,
is seeing strong demand for many hemp-related cultivation supplies.
Recently, Sugarmade announced the acquisition of Sky
Unlimited LLC, a major supplier to large commercial agricultural cultivation
operations. The acquisition is anticipated to generate new revenue streams from
wholesale and commercial clients in both the traditional hydroponic markets and
industrial hemp.
In a news release, Jimmy Chan, CEO of Sugarmade, noted that
Sky Unlimited recently received new shipments of many critical grow supplies
for the booming hemp cultivation sector; nonetheless, farmers are advised to
order as soon as possible. Many items are experiencing long lead times, and
backorders are growing. It’s possible that many cultivators will not be able to
meeting their planting goals due to lack of materials to support cultivation.
Sugarmade recently announced its planned acquisition of Sky
Unlimited, and it is working to close the transaction. Combined with other
announced acquisitions, Sugarmade is predicting very strong revenue growth of
up to $70 million in annualized revenues, which would make SGMD one of the
largest suppliers to the cannabis 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://ibn.fm/SUGAR
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www.QualityStocks.com
480.374.1336 Office
Editor@QualityStocks.com
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