Sugarmade Inc (OTCQB:SGMD) remained on its buying spree Wednesday, with the news that the company intends to acquire a retail location of Washington State-based Hydro4Less.
The Monrovia, Calif.-based company is a product and brand marketing company investing in products and brands with what Wednesday’s news release dubbed “disruptive” potential.
The operation is expected to produce approximately $5 million in revenues and to be profitable during calendar 2019. Additionally, via the pending transaction, Sugarmade will gain an option to purchase two additional Hydro4Less retail operations, which are currently producing in excess of $20 million annually.
Should all three acquisitions close, says the release, Sugarmade will increase its annual revenues by approximately $25 million per year.
Said CEO Jimmy Chan, "Our BizRight marketing arrangement gives us a strong online presence while our Athena United deal gives us exposure to the large commercial growers, which is an area of expected accelerating revenue growth."
Sugarmade shares moved up in price 39-100ths of a cent, or 5.6%, to 7.4 cents late in Wednesday’s session, on volume of 1.7 million shares.
