Sugarmade Inc (SGMD)

[1dmg1]

This is still a boutique industry with numerous startups trying to get traction. With out financial resources the big players ultimately force them out of business because they can’t compete competitively and attract enough customers. Supply and demand dictates who survives and those with deep pockets can afford smaller profit margins short term, then readjust as market matures. Cash is king and those dollars can flip a market place overnight. Where I believe SGMD is heading is in creation of a turnkey operation for moderate size investment group to acquire them with little to know startup costs. SGMD upon completion of acquisitions and subsequent quarters of realized / booked revenue that shows positive cash flow is easy target for new entry into market or existing entity that requires complimentary components of SGMD. Upon current structure of SGMD and assuming acquisitions completed, an equity partner will only supply cash infusion if net revenue numbers shows ROI of approximately 17-20%. I have stated that imo SGMD prematurely published PR’s without full understanding of their feet being held to the fire. Lesson learned and now formalized release of information. Talk of fraud is normal when stock price tanks and one is holding bag taking paper loss on dollars they should not have invested in the first place. ‘Intent’ to mislead or put out known false statements is extremely difficult to prove. What SGMD did was PR events and proclaimed ‘X’ dollars of revenue would result at completion of acquisition. SGMD gave timeline and for a multitude of reasons it didn’t happen. It’s not a perfect world, but what we are witnessing is not uncommon. In a few months when the dust settles and filings show validated revenue growth with positive cash flow quarter over quarter, naysayers will disappear.