Sugarmade Inc (SGMD)

[Macod]

Sleek, thanks for the clarification, I do have a couple edits...

An "earnout" is separate from the initial payments of cash and shares so the total to be added is 650M if I am reading that correctly.

On December 13th the share price was 0.084

200M shares given
450M additional shares to be given based on performance as stated above

That's 650M 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 + 450M (remainder of BizRight compensation) = 900M OS

Current AS = 300M

AS to eventually increase to 1B

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I'm estimating that BizRight will do 40M

SGMD is compensating BizRight the following:

250M at 0.084 = 16.8M

plus 6M cash

plus earnout 450M at .20 (est. price) = $90M

SGMD will pay in total approx. $113M for BizRight

Which would equate to Price to Sales ratio of 2.8 at $40M sales volume. Seems reasonable.