$SGMD new 8k out! Item 7.01 Regulation FD Disclosure - On November 11, 2017, Sugarmade, Inc. (the "Company") completed its initial negotiations toward a long-term Master Marketing Agreememt (the "Agreement") with a leading supplier of hydroponic and cannabis related agricultural supplies (the "Supplier") Having completed these initial negotiations, the Company put forth a Letter of Intent (the "LOI") to the Supplier outlining the terms of the proposed Agreement.
The Companies has agreed not to disclose name of the Supplier until such time as the LOI is accepted.Under the terms of the proposed Agreement, Sugarmade and the Supplier will enter into a Master Marketing Agreement for the major brands offered by the Supplier. The term of the proposed Agreement will be twenty (20) years. The Company will be responsible for all sales, marketing and delivery of all established brand names. Sugarmade will, upon the signing of the definitive Agreement, immediately begin recognizing and booking revenues under its corporate Sugarmade, Inc. entity.
The Company and the Supplier estimate the revenue streams from these brands will top $30 million during calendar 2017, with meaningful growth expected during 2018. During 2017, the Supplier is expecting to be profitable with ongoing profitability envisioned. Growth in 2018 is expected to be generated from organic growth of current brands and via the addition of new brands, especially relating to legal cannabis cultivation.
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