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Equity in Hempistry is apparently being considered when you look at a statement they make in the 8-K. They say “ No equity in Hempistry is being acquired relative to this first tranche of the overall investment.”
SugarMade to receive twelve percent (12%) of the profits of Hempistry’s biomass and converted distillate or isolate cannabidiol (CBD) for the 2019 farming season.
BZRTH audits is complete.
8-k is out
It’s not hopeless. Don’t let all of these negative posts put you in that mindset. Sugarmade has already started intergrating Bizright & BZRTH into the company. No insiders are selling all their shares. No company has stepped away. They are just waiting for financing to go through on the acquisitions that need it and it’s a done deal. All we have to do is wait. Even if the stock price goes well below .01 when an announcement is made about just 1 acquisition it will come roaring back. All we have to is be patient and wait.
Just an announcement that on July 12, 2019, the Board of Director of the Company accepted the appointment of Mr. Khoi Dang (“Mr. Dang”) as a Director of the Company. He is another lawyer specializing in acquisition and finance to get these acquisitions done.
It may not necessarily just keep bleeding. We know they want to keep the stock price quite far above $0.01 to maintain being on the OTCQB. In order to be on the OTCQB they must meet an ongoing minimum bid price test of $0.01 as of the close of business for at least one of every 30 calendar days. So, I am sure they don't want to be testing these waters and fall to OTC Pink sheets. But, if they have to fall to survive I guess they will do it.
But, if you look at the Use OF Proceeds section of Registration Form S-1, it breaks it down as to where the money is going as stated below. My guess is the $7,000,000 of the 100% Raised Offering is for all acquisitions. We don't know what monies is left to close BZRTH . But, they did say that a portion of K&J Offering was going to be used along with "pending financing" that they say there were trying to get. So if they raised 25% and got $1,500,000 and the "pending finance" it may be enough to close BZRTH. Then they make an announcement and the stock price goes up. Or they could use the $1,500,000 to close out Sky Unlimited and make an announcement and the stock price goes up. So, if these amounts of cash raised are not enough, they may just sign a promissory note with the parties involved for the rest, close it out and then make an announcement and the stock price goes up. A promissory note could be the "pending financing" they are talking about. They then can make an announcement of some of the acquisitions being closed and the stock price goes back up then they can continue to raise money from the K&J Offering until they fulfill all of the companies financial goals. They have some options here.
If 25% of the Offering is Raised (34,615,385 shares sold to K&J)
Aggregated Amount (Raised Amount): $2,990,193
Inventory (COGS): $700,000
Acquisitions: $1,500,000
Operation Expansion: $790,193
Total Use of Proceeds: $2,990,193
If 50% of the Offering is Raised (69,230,769 shares sold to K&J)
Aggregated Amount (Raised Amount): $5,980,387
Inventory (COGS): $1,500,000
Acquisitions: $3,500,000
Operation Expansion: $980,387
Total Use of Proceeds: $5,980,387
If 75% of the Offering is Raised (103,846,154 shares to K&J)
Aggregated Amount (Raised Amount): $8,970,580
Inventory (COGS): $2,000,000
Acquisitions: $5,000,000
Operation Expansion: $1,970,580
Total Use of Proceeds: $8,970,580
If 100% of the Offering is Raised (138,461,538 shares sold to K&J)
Aggregated Amount (Raised Amount): $11,960,774
Inventory (COGS): $3,000,000
Acquisitions: $7,000,000
Operation Expansion: $1,960,774
Total Use of Proceeds: $11,960,774
If you look at the Use OF Proceeds section of Registration Form S-1, it breaks it down as to where the money is going. Again it all depends on the "pending financing" that they say there were trying to get as to what percentage of the Offering they use for BZRTH. The offering is that SGMD will sell up to 138,461,538 of it's Common Stock to K&J at a price of $0.08638337. SGMD then uses the raised amount of money as listed below. Then K&J may resell up to 138,461,538 shares of SGMD Common Stock that SGMD sold to them. So, if SGMD raised 100% of the Offering then I think that is the total amount needed for the acquisitions, in this case it looks like $7,000,000. The May 20th 8-K says they will use a portion of K&J funds in addition to "pending financing" to complete the acquisition of BZRTH. So, I am thinking the $7,000,000 is for all acquisitions, which include Sky Unlimited. Is anyone else seeing it this way?
If 25% of the Offering is Raised (34,615,385 shares sold to K&J)
Aggregated Amount (Raised Amount): $2,990,193
Inventory (COGS): $700,000
Acquisitions: $1,500,000
Operation Expansion: $790,193
Total Use of Proceeds: $2,990,193
If 50% of the Offering is Raised (69,230,769 shares sold to K&J)
Aggregated Amount (Raised Amount): $5,980,387
Inventory (COGS): $1,500,000
Acquisitions: $3,500,000
Operation Expansion: $980,387
Total Use of Proceeds: $5,980,387
If 75% of the Offering is Raised (103,846,154 shares to K&J)
Aggregated Amount (Raised Amount): $8,970,580
Inventory (COGS): $2,000,000
Acquisitions: $5,000,000
Operation Expansion: $1,970,580
Total Use of Proceeds: $8,970,580
If 100% of the Offering is Raised (138,461,538 shares sold to K&J)
Aggregated Amount (Raised Amount): $11,960,774
Inventory (COGS): $3,000,000
Acquisitions: $7,000,000
Operation Expansion: $1,960,774
Total Use of Proceeds: $11,960,774
I wish I had some more money to buy at these prices.
Remember Sugarmade said on the FORM S-1 dated 6-26-19 that "the Common Stock Outstanding Before the Offering is 692,076,568 Shares. Common Stock Outstanding After the Offering would be 830,538,106 Shares, assuming the sale of all of the shares being registered in this Registration Statement. So a total of 138,461,538 shares may be issued. So, it could be but it is hard to say because the outstanding shares are not static and are not updated everyday. Also, we don't know if all of the 138,461,538 shares will be issued at one time or in portions. The language of on Form S-1 suggests that it may not be all at one time and may be in portions as needed.
Also, the 8-K on 5-21-19 says "that K&J is committed to purchase up to $20,000,000, upon the effectiveness of a registration statement on Form S-1, of the Company’s common stock. The Company plans to utilize a portion of the funds received via this arrangement, in addition to funds from planned upcoming pending financing, to complete the acquisition of BZRTH"." So, it sounds like to me it all depends on the "pending financing" as to how much of the K&J Funding shares that they use or need. They have already filed the registration Form S-1, and so have nothing holding them back from starting, so I would think that this activity has something to do with K&J Funding.
It's amazing to me that when the stock price goes up people on here post that Jimmy or Sugarmade is the real deal, but when the price goes down they are the devil incarnate..lol. Then they think their negative comments, which are posted on the internet, have no effect on the price going down. Go figure!
Lol...I hear you.
You can't forget about Sugarmade can you? I mean you said you had no skin in the game and sold all your shares but you still posting negative information about Sugarmade. What's up with that?
I think he is making the right moves with what he has. He basically has limited money and limited staff trying to acquire 4 companies. By getting these guys on board perhaps he can raise the capital he need to get everything done.
To give you an example of what Sugarmade can do once they get the ball rolling, take a look at Green Growth Brands. Green Growth Brands stock price last year in May was around .14. This company managed to acquire 2 companies, Organic Remedies & Xanthic Biopharma. Once the acquisitions were complete in November the stock price went from .18 to a high of 2.78. In January of 2019 it had a high of 5.2. So, that's what these acquisitions will do for Sugarmade. It will sky rocket the stock price once they are complete in a matter of months. The key is raising money to rapidly expand. Jimmy has the right idea about rapidly expanding all he needs is the money. Green Growth Brands has mastered the art of raising money. They started out initially with about 107 M from high-net-worth individuals. So anyone saying you can't get a loan from friend, family and relatives is very uninformed because that is exactly what they did to get started in May 2018. Then they raised $65 M in September of 2018. Then in March 2019 managed to raise $61.2 M from “Debenture Financing”. They then turn around and basically acquire Moxie Holdings. That's how you do it. I think Sugarmade can replicate this process.
https://www.newcannabisventures.com/green-growth-brands-raises-61-2-million-in-7-convertible-note-offering/
https://www.globenewswire.com/news-release/2019/07/09/1880233/0/en/Green-Growth-Brands-to-Create-First-360-Degree-Cannabis-Company-Through-a-Combination-with-MXY-Holdings-LLC.html
https://www.greengrowthbrands.com/press-releases/2018/09/24/green-growth-brands-completes-upsized-raise-of-85-million-to-satisfy-overwhelming-investor-demand/
https://www.newcannabisventures.com/green-growth-brands-is-using-decades-of-retail-experience-to-power-its-multi-state-cannabis-strategy/
Sugarmade adds Khoi Dang to the team. He is a lawyer who practices in the areas of corporate law, corporate finance, mergers and acquisitions, commercial transactions and banking. Another guy specializing in mergers and acquisitions and financing. These deals are getting done. There is no doubt.
http://sugarmade.com/our-team/
https://www.linkedin.com/in/khoi-dang-8022ba1a/
If you were up over $900,000 the process has worked for you...lol
Just someone who has real life business experience and deep understanding of how it works... just saying
All of them CEO’s out there don’t know a lot about closing acquisitions. But, they either have people on staff that know or they hire someone that knows. Many hire an outside consultant that knows. It’s complicated with all of the steps. I always like to use Microsoft as a good example because it is a well run company. After Microsoft's first acquisition in 1987, it has purchased an average of six companies a year. The company purchased more than ten companies a year between 2005 and 2008, and it acquired 18 firms in 2006, the most in a single year. But, Bill Gates did not do all those acquisitions. He had people on staff or outside consultants to handle all of the complicated issues. So give Jimmy credit for getting some help. I don’t want to sound like a Jimmy cheerleader but I don’t think people understand that he has a tough job especially when you just start a new company and don’t have a large staff or a lot of money. It’s tough.
https://en.m.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Microsoft?wprov=sfti1
That’s why they hired him. He specializes In fundings for acquisitions. But really, all we have to do is hold on to the stock and wait because the Hydro4less acquisition is an all stock deal and requirements no financing. It is just a matter of time. The stock will rebound.
I think you are worryingly for nothing because they are going to close these acquisitions. One of them is an all stock transaction and require no financing. So you know they will have no problem with that one, Hydro4less. You are are right it does benefit you to hold long term. If that’s your trading strategy then that is it, you have to stick to your guns and wait it out. IMO, where you are now with your shares you will come out bigger than most of us here when these acquisitions close. To me it’s worth the wait. So when you are up a few million after the acquisitions close and you cash out at a lower tax rate, it will have been worth the wait. It is hard, I know to watch the stock price sink. Believe me I know how you feel. It is hard for me to watch it go down. But, you have to just believe that there is light at the end of the tunnel and it is not an oncoming vehicle...lol. I believe we are going to rebound soon.
Lol.you are right. "Well stated" should not have been deleted.
I believe like you that SGMD will rebound. We have to just hang in there and wait. But, I find it interesting that there are no PR's being put out now. So maybe it's the calm before storm. So maybe we hear some good news soon.
Lol..I hear you.
You keep factoring out your role in all of this Suissac. Respectfully, I think you are misguided in your disappointment. Your disappointment should be directed more towards yourself for losing everything. You should have had some type of stop loss in there to negate your losses. You should have gotten out of there sooner. So, it's not Jimmy that is to blame for you losing everything, as you say, but it is your trading strategy. Your trading strategy is the main reason why you are down. So, to say that it is Jimmy or SGMD that is the cause to me is not a valid point. Jimmy and those guys have been putting out PR's at one point every other day. The purpose of that is to make the stock price go up to benefit you. He has been going out and finding companies to acquire to benefit you. The point of that is to make the stock price go up. So, how you can say that Jimmy is to blame when the evidence shows that he has been actively putting out public information to make the stock price go up and finding companies to acquire? Most of us here on this board would have liked to been up $903,000. Some of us have gotten in this and has never really been up. A lot of us would take being up $10,00 or $5,000 as a win. So, you were very fortunate to be up like that but you should have cashed out when you saw the stock price going down at some point. Remember, Jimmy cant control the stock price, and if he could he would be making it go up.
By the way, I don't think in the long run you will lose everything. I think the stock price will rebound big after these acquisitions. All, you have to do is hang in there and be patient. So, if it goes up really big after these acquisitions and you stay in, then that is on you and no one else.
You have been up $903,000 at one point. IF Jimmy misspoke about Bizright revenues as you say, then you benefited too. Respectfully, that's the point I am trying to make to you. Everyone is in the same boat, insiders and outsiders. You keep saying as the stock sinks toward .01 that insiders are benefiting. It is unlikely that they are benefiting as the stock price is sinking down that low just like we are not benefitting. You were not saying that when you were up over $900,000. You have to know when to get out. So, you decided to stay in and ride the stock down. That's on you and not Jimmy. So quit complaining about Jimmy because the way I see it you benefitted just like any insider but you did not cash out. You elected to ride the stock all the way down. So, just wait and see how the close of these acquisitions turns out, we may be pleasantly surprised.
Too funny!
Yes, you are right. If there is news you can get right back in. In many respects it's not having enough news or information to know what's really going on to make an informed decision. It's almost like a gamble in many respects because there is only so much information that you discover and are privy to. Only the insiders really know what's going on. Trading Sugarmade stock reminds me of Kenny Rodger's song "The Gambler." The lyrics say:
"You've got to know when to hold 'em. Know when to fold 'em. Know when to walk away. And know when to run. You never count your money. When you're sittin' at the table. There'll be time enough for countin'. When the dealin's done."
I am going to hold this thing until at least December. Then I will revaluate it and may have to walk away or even run...lol
Yes, I remember you saying you were going to get out at the end of June if there was no announcement of Bizright revenue recognition. You may be the one who made the smart move in all of this. But, I am going to hang in here for a while longer and take a chance that SGMD gets the financing right and close out these deals. IMO, they will in some form. So, good luck to you also my friend.
IMO, It is absolutely no conflict of interest to shareholders for a loan of this type because it benefits shareholders. When the loan is done and the acquisitions are closed then pps will go up dramatically, which benefits shareholders. For the loan to be respected as a third-party debt, the parties should execute a promissory note to evidence the loan in the same way a note would be executed if the loan were made to an unrelated third party. It is done often. They could get a loan from friends, family, and relatives as long as it's done legally.
Also, John and Jimmy are in this for their own personal gain for sure and so are all of us. We are not in this to socialize ..lol. We are all in this to make money. So I can't fault them for wanting to make money.
IMO, the cannabis game is in the way early stages. Most of the stores are only beginning to do CBD products. Walmart and Target are still only looking for a CBD line. Krogers is just starting to get a CBD line in SOME stores. Most other companies don't have a CBD line still. Let's not even talk about marijuana. It's not legal in the US yet on the Federal level. So when it's legal from on the Federal level there will be an all out boom. Medical marijuana is only legal in about 30 states on a state level. So there is plenty of room to grow. Sugarmade will sell supplies to both hemp and marijuana producers and so IMO we have not even touched the surface yet. It is just getting started. So, if you been in this since 2017 and can't seem to hang on, then IMO you got in too early because it is just really getting started.
IMO, people are only complaining because the stock price is down. If it was at .4 or something with the same arrangements that we have now, we would not be having all of these rants. Everyone who was in this in 2017 had a chance to make money. The share price had a high of .43 in Jan 2018. But, what kept people in here until now? Greed, plain and simple. They thought it would go higher and higher. So you can't blame Jimmy or John for that. All, you can do is blame yourself. I blame myself for not getting out at certain points. I don't blame Jimmy because the opportunities were there. It is easy to come back in hindsight and say coulda, woulda, shoulda.
But, IMO, I still think there will be more opportunities when they close these acquisitions, if you don't get out at the right time and make money then, don't come on here complaining about Jimmy, John, Sugarmade and how it all turned out.
https://www.thetaxadviser.com/issues/2018/oct/loans-members-llcs.html
https://www.entrepreneur.com/article/24380
I completely agree that's why I think they took the route of K&J Funding. It's all about terms and control. If they want more control of their ventures then they try K&J Funding (John VU) and if that does not do it, then they may even go the route of getting a loan from Hempistry (John VU is CEO, Jimmy Chan is Chairman) if they are producing enough revenue. Remember they only need about $5 -$6 M for the Bizright/BZRTH acquisitions to close. So, let's say they get only $3 - $4 M from the K&J arrangement , then they can get the rest from a loan from Hempistry. The venture capital option is a last resort option but it is still an option for them. So, I am long also because I think they will get it done either way.
I am sure he is a game changer. That is why Sugarmade hired him. He operates a law firm that specializes in venture capital arrangements. I am sure he is on it and looking for venture capital arrangements for the closing of these acquisitions.
So, it's not all doom and gloom like some people seem to think. Sugarmade has options when it comes to getting financing. The ones they pick depends on the terms. The venture capitalist want significant control over a company decisions, in addition to a significant portion of the companies' ownership. So maybe that is why we are only seeing K&J Funding right now because SGMD's management wants control. But, if K&J does not get it done then the many venture capitalist arrangements may be the way they have to go. Also, another route they can use is to borrow money from another company, such as Hempistry. Hempistry has an unverifiable projected revenue of $60 million in 2019 by an employee on his linkedin page and that is only planting 100 acres. So, it may take a little time to wait on these options, but they still are there. So we know Jimmy Chan is Chairman of the Board at Hempistry and John Vu (K&J Funding) is CEO of Hempistry. You know those 2 have been discussing these options. It may take a little while longer but I am sure they will get these deals done.
https://www.linkedin.com/in/timothy-morgan-aa910b67/
Let's not forget that SGMD has bullets left in the gun. The recent filligs may be them just laying the groundwork for the Bizright, BZRTH, & Sky Unlimited acquisitions. We all knew it was coming with the K&J Funding because they needed financing to do it. This may be them just setting it all up before they start to execute their plan. So, let's not forget the Hydro4less acquisitions. These are all stock transactions. As Sugarmade has stated: " Under the terms of the pending agreement, Sugarmade will acquire the Washington state flagship location in an all stock transaction pending mutual due diligence, completion of the definitive agreement and approval by both boards of directors." So, IMO, this may be their strategy to close out Hydro4less first (with due diligence) and get a pop in the stock price thus setting up Bizright & BZRTH acquisitions with K&J Funding. After the Bizright & BZRTH then they can close out Sky Unlimited. The Sky Unlimited acquisitions initially was a cash and stock transaction. But, in the last 8-K filing for Sky they said they are contemplating an offering of their securities for financing.The Hydro4less acquisitions seems to be the least difficult route for them. If they close out the Hydro4less acquisitions it will give them a revenue boost of $25 M with all 3 locations for a total revenue of $30 M a year. That will put a significant upward momentum in the stock price giving them momentum to close out the other acquisitions. It's going to be interesting to see how they execute it, but they have plenty of options.
https://www.prnewswire.com/news-releases/sugarmade-to-acquire-hydroponic-retailer-hydro4less-flagship-location-adding-to-streak-of-planned-acquisitions-898263995.html
Sugarmade has filed Form S1-A
https://www.sec.gov/Archives/edgar/data/919175/000152013819000221/sgmd-20190702_s1a1.htm
Your in shock and can't believe it. I hear you there and understand the feeling...lol. But, I do believe we are going to rebound.
Plantation Corp is obviously struggling. Sugarmade should just acquire them for the valuable Budlife product. Probably could get them for much of nothing since they are bringing in $0 in revenue. Put out some PR about it and the stock price will rebound because investors see the value in a product like that. Then close out Bizright & BZRTH. IMO, just a PR of negotiations with Plantation Corp for an acquisition or for the purchase of the Budlife product itself would shoot the price of the stock up.
https://www.sec.gov/Archives/edgar/data/1458704/000101738619000127/plantation_2019mar31-10q.htm
The Budlife product is still in development according to Plantation Corp's 10-Q filed on March 31, 2019. So Sugarmade is not lying when they say they have not received the Budlife product from Plantation. So, once or if Plantation finishes developing the product then Sugarmade can market it.
https://www.sec.gov/Archives/edgar/data/1458704/000101738619000127/plantation_2019mar31-10q.htm
You do know lemonade is sweet!...lol
Good luck to you. It's the only finance option they had to close the acquisitions. It will be a short term deal. It will pay off for SGMD in the end.
Yes, I think you are right. There are more and more cannabis companies out there and not enough investors. I think it is slow to bring in investors because in the US it is being legalized state by state which is slower. I am hoping that US legalization at the Federal level will bring a lot more investors in. I think when it's legal across the board in the US at the Federal level and the industry as a hold starts bringing in billions more dollars, I think more investors will come in. I think Sugamade will break from the pack with these other cannabis companies because of the acquisitions. When they close these acquisitions they will get the attention they need from major investors. Keep in mind Sugarmade does not handle any marijuana or hemp product so if they can get over the hump with these acquisitions and start recognizing $100 million or more in revenue then I believe their stock price will be enough to uplist to the Nasdaq. This will attract the institutional investors who would otherwise not invest if they were handling marijuana. So once they get these acquisitions closed it will be another ball game for SGMD.
You are way out in left field. Come to the pitchers mound with the rest of us and have an honest intellectual discussion. Otherwise stay out there..lol
You keep talking like a left fielder or maybe right fielder..lol. You make no sense when you say revenue does not matter and in the same sentence you say Sugarmade has no revenue. That tells you right there that revenue matters...lol. I am not going to get into another discussion with you on that because it is above your head or something.
Yes, it will rebound. I am hoping it will not go that low, but it may. There is a good chance that it will not because they are going to be doing this in 10 day cycles from what I understand. So there may be some time for the stock to recover. Also, they may finalize Hydro4less first since it's an all stock transaction and get some much needed revenue and a stock price bump. They could also have some Hempistry news somewhere in there that would definitely boost the stock. So, I think it will all work out in the end and it may not go down that far at all.