This is what MIGHT happen with SGMD
As we know, Sugarmade, Cannabis Strategic Ventures, & Hempistry have been meeting and discussing something. Whether it is a joint venture or mergers/spinoffs or something, we don't really know. But we do know, that there are many connections between the companies and there are many scenarious that could play out on what they are planning. But one scenario that I see is that Cannabis Strategic Ventures (NUGS) is the one that could be doing the acquisition of or leading the joint venture with Sugarmade. It could be that Hempistry may be fully acquired by SGMD. Remember, SGMD has already invested $1,000,000 in the form of common shares in Hempistry allowing Sugarmade common shareholders to possibly benefit from any future initial public offering of Hempistry. So SGMD may just fully acquire Hempistry. Remember the $20,000,000 loan from K&J Funding (NUGS ?). They have some change to do it. Then SGMD can do a joint venture with or be acquired by NUGS. If they do a joint venture the NUGS/SGMD dual would be a powerhouse combination. If NUGS does an acquisition of SGMD then Hempistry could be another company along with Sugarmade that is in the NUGS portfolio. Imagine the amount of hemp/marijuana that could be supplied with the combination of Hempistry, with 23,000 acres along with the 6 acre NUGS Farm. Sugarmade would be providing the hydroponics supplies. That would be a powerhouse overnight. Either way it goes SGMD shareholders benefit.
Straight from NUGS LinkIn page:
"Through mergers, acquisitions and incubating startups, the company is working towards creating a portfolio of companies that share our vision and create shareholder value. As we continue our journey, we look forward to meeting many new partners and engage in joint venture relationships."
We have seen all of the connections with these 3 companies. Key executives have known each other for years and they have been meeting & talking. Jimmy Chan has 12,600,000 shares of NUGS and is listed as a Control Person or beneficial shareholder on NUGS OTCQB Certification filing. Another filing of NUGS has Jimmy listed as a consultant.Because Jimmy is involved with NUGS in some capacity that is why I see NUGS as the lead company that will be controlling everything and will acquire SGMD. Jimmy is also involved with Hempistry. Something is brewing. Now lets look at some numbers.
Financials
NUGS-2018 Revenue-$15.9k PPS-$1.28 OTC Pink 2019 Revenue guidance-?
SGMD-2018 Revenue-$4.44M PPS-$0.039 OTCQB 2019 Revenue guidance-$70M
Hempistry- TBD
It seems that NUGS has managed to catch the minds of investors. Even though they are trading OTC Pink and not making much revenue, they are still trading well over $1 a share. There is a lot of speculation in that stock price. What has helped that stock is when they put out a PR saying they planted 20,000 cannabis plants at new 6-Acre licensed site called NUGS Farm North. It soared after that. So, if they roll SGMD into their portfolio there is no telling where that stock price will climb because SGMD will definitely help their bottom line. So SGMD would be the immediate prize to them if it is acquired. Then if they can bring in Hempistry, with its thousands of acreage into the fold that stock will really climb. NUGS has also applied for uplisting to OTCQB so that is going to help their stock price go up even further when it is complete. I think, if this scenario happens, it will likely be a stock-for-stock merger with SGMD, in which holders of shares of SGMD will have that stock replaced with shares of NUGS. Which will be quite lucrative for SGMD shareholders. Under this scenario, there would be a new power player in the cannabis sector among the ranks of Canopy Growth, etc.
This is all speculation of course but it could be a good approach. We shall see what happens soon.
