Sugarmade Inc (SGMD)

[CannaBeast]

From 10k:

On December 13, 2017, the company signed a definitive exclusive master marketing agreement with BizRight Hydroponics Inc. the term of the agreement for the period of 20 years. BizRight will be compensated with both cash and restricted common shares. Effective date of the contract Bizright will be compensated with 200,000,000 restricted common shares in lieu of first initial payment of $2,000,000 and $2,000,000 cash upon first major funding and $4,000,000 due upon second major funding, the maximum share earn out is 450,000,000 total based on monthly revenue of $2,500,000 or $30,000,000 annualized. The fair market value of 200,000,000 restricted common shares at grant date was $16,800,000.

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On December 13th the share price was 0.084

200M shares given
250M additional shares to be given based on performance as stated above

That's 450M shares to be added to the OS.

"On March 19, 2018 there were 247,395,774 shares outstanding of the issuer’s common, the only class of common equity. This amount does not include shares to be issued."

Approx. 250M + 200M (1st BizRight compensation) = 450M OS

450M + 250M (remainder of BizRight compensation) = 700M OS

Current AS = 300M

AS to eventually increase to 1B

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I'm estimating that BizRight will do 40M

SGMD compensated BizRight with 450M at 0.084 = 37.8M + 6M cash = $43.8M

SGMD paid $43.8M for BizRight

https://backend.otcmarkets.com/otcapi/company/sec-filings/12634231/content/html

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It's basically a MERGER OF EQUALS, with a BizRight (LARGER company) getting a slight advantage

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Now ask yourself this question

Why did BizRight (LARGE company with 30M+ revs) want to merge with SGMD ( 4.7M LOSS)?????

Answer:

BUDLIFE!!! BUDLIFE!!! BUDLIFE!!!

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VERY EXCITING TIMES

STAY TUNED

$SGMD