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We are giving this company (all public companies for that matter) our money to use with hopes that they will in return reward us. That's what investing is.
I put my money here because I saw they had ties to Hempistry which at that moment Hempistry was touting 23,000 acres. That's some serious land; but even the 2600 acres they are touting now is huge. I'm just here hoping a deal with Hempistry (in the form of a reverse merger) comes to fruition.
Hopefully this POS is at .0001 before SEC and/or FINRA approves the RS making a 1:1000 RS worth ten cent.
New low .0014
Why take $1.35 with a 1:500 when you can get $2.70 for 1:1000?
It has nothing to do with arrogance but knowing a greedy crook when you've been dealing with him for months. 1:1000 is a given.
He's saving that ratio for the next split when it drops to .0001
There you have it!
Wash, rinse, repeat!
Shorts are lining up!
Vote was rigged.
Series A got 3205 votes per share.
Series B got 16,667 votes per share.
LMAO!
.0027 x 1000 = $2.70
How quickly will they drop back to sub penny?
So the next step is suspension. They have 35 minutes before filing cut-off time.
"Failure to File Form 8-K
If a company is required to file a Form 8-K after an event and it doesn't do so, it can face penalties from the SEC. These can be monetary penalties or even the delisting of the company's stock. As a result, many companies err on the side of caution when it comes to filing Form 8-K.
Companies that don't disclose information to shareholders can also face allegations of securities fraud or lawsuits from investors saying they were misled into buying or holding the company stock."
https://finance.zacks.com/stock-effect-filing-form-8k-11036.html
LOL.
They are quietly preparing for bankruptcy. If the RS passed they would have been more than happy to share that. It didn't pass which is why Ted is waiting until the last minute to release the 8K stating such. If the 8k isn't released today, which is the 4th business day, the SEC will suspend trading. Look for the 8k to come out later after hours.
The RS was Ted's only hope. They have no more shares to dilute, therefore they can't sustain operations.
The most powerful headline that I've read over the years regarding this POS ...
"The Spectacular Rise and Fall of MoviePass!"
Which is so true.
The whole market is down including all MJ stocks. Only folks making money are short sellers. Right now this is a short sellers market...all the tariff chit. LOL
Yeah, then after that deal, focus on Hempistry...
This is all hypothetical but let's say SGMD does a reverse merger with Hempistry. Hempistry has 2600 acres under its belt. Say those 2600 acres yields the highest CBD oil which fetches about $30 to $40 a pound.
2600 acres yields 2,600,000 pounds (1 acre equals 1000 pounds) that would value Hempistry at around $78,000,000 to $104,000,000 without any multiples. Add a 4x multiple for a private company and we're looking at $312,000,000 to $416,000,000 in value. Add a 7x multiple for a public company and we're looking at $546,000,000 to $728,000,000 in value.
I'll use the low end of a private company with a 4x multiple as an example, which equates to $312,000,000.
Hempistry is valued at $312,000,000. As part of the reverse merger, Hempistry gives us 1 share of Hempistry for every 7 shares of SGMD. Hempistry has 100,000,000 shares outstanding; SGMD has 700,000,000 shares outstanding. 1 for 7 pretty much takes over all of SGMD stock equally.
So now Hempistry is public with an OS of 100,000,000 and a value of $312,000,000 which should eventually increase to $546,000,000 for a public company using the 7x multiple (using the $30 per pound number) with an initial pps of $3.12 but increasing to $5.46 per share.
Now add in the value of SGMD. Say all the business under Sugarmade brings in $40 million annually with a 7x multiple; that's an additional $280,000,000 value. $546 mil + $280 mil = $826,000,000 value; which turns out to be $8.26 per share (or $78,000,000 + 40,000,000 = $118,000,000 x7 = $826,000,000).
This is why reverse mergers are lucrative. If I have 100,000 shares now, after the reverse merger I'd have 14,285, valued at $3.12 ps...slowly but surely increasing to $8.26 ps.
Who here doesn't think that Hempistry and SGMD together is worth at least $826 million? You have a 2600 acre hemp company marrying a hydro/cultivation supply and equipment company.
Purely hypothetical. Don't know for sure how reverse mergers work, but I'm pretty sure it's close to this.
Someone get Jimmy and John Vu on the horn and tell them get this deal done!
Yeah, the share structure could be better. If a reverse merger happens with Hempistry then the share structure will be on average with the other mj/hemp companies of 100 to 200 million OS.
Of some of the "tops", their OS's are...
Canopy is at 345 million outstanding
Curaleaf is at 457 million outstanding
and Aurora has a whopping 1 billion outstanding, trading at $8
But ideally I'd like to see at the max 250,000,000 outstanding. That said, of SGMD's 681 mil OS, 437 mil is restricted, 244 mil floating.
Of the following top ranked mj/hemp companies, their average market cap is $300 million. If SGMD had a market cap of $300 mil its pps would be around .45, that's a 1400% increase from their current price.
https://www.newcannabisventures.com/cannabis-company-revenue-ranking/
This actually works to their favor. There's 1 month left in this quarter which is also the end of SGMD's fiscal year...so if the deal gets done in June, they can recognize the whole year. Once the deal in done, whatever is on the books will be shown.
Someone correct me if I'm wrong.
I sold already so I can buy more SGMD...it's all family, but SGMD has more upside, i.e, 1000's of percents. LOL
Yeah, I think we're at the bottom. I bought more, but I had to sell my NUGS shares to do so :(
K&J must not be able to buy this low (or they don't have the $20 million), because this price is a steal compared to the $20 mil to 138 mil shares ratio; which works out to be .144
So for K&J not to be buying this low means K&J doesn't have the money or they are contractually obligated to buy at a certain and/or higher price.
Yes, because they'll have to file form 13G.
If they are quietly accumulating, 34 million shares is 5%, 68 mil is 10%. Their plan is to buy 138 million so at the current OS they would own 20% of the company.
It would be hard for them to quietly accumulate especially since there is really no volume. When volume picks, it could be K&J buying.
"When an individual acquires beneficial ownership of a 5% to 20% stake of a particular stock, that individual must file either Schedule 13D or 13G within 10 days of the acquisition."
Buying has dried up. Retail is tired of losing money. LOL
News comes out...stock pops...buy the pop...stock drops...left holding for months and/or selling for a loss which then benefits the short seller.
They have until tomorrow to update shareholders. If they don't do it tomorrow, SEC will suspend them.
Probably the same person who bought 1 million shares last week at .0295
Probably looking to flip for a few grand.
Since you guys have direct contact with Jimmy, ask him what are they doing in regards to obtaining Supply Agreements with some of the big producers.
I know they have a supply agreement with producer Hempistry and its 2600 acres, are they content with that deal, or are they seeking more supply agreements?
They have 4 business days to file an 8k with the results.
I know, I know :)
Just hoping they make it official soon so we can leave these low cents. They're good adding levels but bad on the eyes.
For any new peeps checking out the board this is the company we're talking about...
https://hempistry.com/
Jimmy has his hands in everything.
Was just reading the following article, and I'm thinking, whomever gets Hempistry gets the mother lode. At 2600 acres, imagine how much CBD they can produce. The Colorado farmer makes $40k per acre (1 acre yields 1000 pounds...$40 per pound for rich CBD).
Hemipstry has the potential to yield 2,600,000 pounds of CBD and could charge $30 per pound, bringing in $78,000,000 per harvest.
After Jimmy finishes these BizRight deals, he should shift his focus to doing a reverse merger with Hempistry.
https://www.cnn.com/2019/04/09/success/hemp-farmer/index.html
I bought more today. This has to be the bottom.
I want $2 a share, but $1 wouldn't hurt.
A $1.4 billion market cap is plausible...I think. LOL
Naw Dawg, haven't heard anything. LOL
LOL. Whoever just bought 70 shares at 1.09 and was thinking the price would go from 1.02 to 1.09, you were so wrong. LOL. Market Makers are in full control of this.
Must be Robinhood players trying to manipulate the price since commissions are free.
You might get it before the end of the day.
Just did!!!
Look at the spread now. LOL. Talk about manipulation!
1.00 x 1.13
I stand corrected. New 52 week low was just hit.
.028955
The meeting is probably over by now. Ted and Co. accomplished what they set out to do...rig the vote.
I was talking about calling the SEC, FINRA, broker, transfer agent, etc.
Ted and Co. surely won't answer the phone. LOL
IMO, .01 is a tight spread. With already 67,000 in volume in just over an hour of trading not to mention being red, people are selling as the faith has been lost. It's hard enough for this company to attract new retail money (hence the daily low volume), and I don't see it changing anytime soon. 1 PR and the price goes up, then slowly goes back down....and then the people who bought in on such PR are now holding for months and/or selling for a loss...that's how the OTC system is designed.
Don't rely on emails with complaints. Make a phone call. If folks can't log in, that's a serious issue that needs immediate attention.
NUGS has nothing to do with the spread.
It is unfortunate that this can't hold any gains. It's just the manipulation that comes with the territory of being on the OTC. A 100 share trade can swing this from green to red and vice versa.
Volume shows there is no liquidity that's why the spread is so wide. If more people show some interest, the spread will tighten up. Having said that, with what seems to be millions of mj companies out there, the sector seems to be fading especially in OTC world...people are just in flip mode with these tickers...no one's really holding anymore...holding turns into MONTHS of wasted time/money.
GL
Here's the procedure...
An RS takes this worn out POS to $2.5 to $2.8 depending on closing price tomorrow. A fluff PR will come out allowing for a quick inside dump, then the short attack (also consisting of insiders) will follow sending this worn out POS back to sub penny. Then Ted may finally throw in the towel and file for bankruptcy.
IMO, the bottom is in. I doubt we'll see another new 52 week low. Only thing this can do now is go up or sideways.
It's all good, we're on the same team. Thanks.
They have Jimmy by the balls. Jimmy needs them, they don't need Jimmy.
You take away BizRight and Co., and Sugarmade has nothing.
It's good to see NUGS has their own thing going and not relying on anyone else. Hopefully they get the Hempistry deal cause Jimmy already has his plate full. His plate has been full for years...with rhetoric to show for it. LOL
To be the parent, BizRight would have to own more than 50% of BRZTH (majority owner).
To be an associate, BizRight would be a minority owner. Since BizRight is considered an associate of BRZTH, that means someone else is the majority owner of BRZTH, which IMO, the deals are separate and both deals are worth 200,000,000 shares each not counting any cash involved.