Sugarmade Inc (SGMD)

[GetRich902902]

It depends on how you look at it really. I would say neutral as being the optimist because it's the K& J financing needed to close the Bizright & BZRTH acquisitions but the stock price may go down as a result because of the dilution. SGMD need the ability to use our equity securities to finance the deal and close it out. After the deal is done then Sugamade will have some revenue.

They state that :

"We do not have sufficient cash on hand.

As of March 31, 2019, we had $33,916 cash on hand. These cash resources are not sufficient for us to execute our business plan. If we do not generate sufficient cash from our intended financing activities and sales, we will be unable to continue our operations. We estimate that within the next 12 months we will need at least $5,000,000 in cash from either investors or operations. While we intend to engage in several equity or debt financings, there is no assurance that these will actually occur. Nor can we assure our shareholders that we will not be required to obtain additional financing on terms that are dilutive of their interests. You should recognize that if we are unable to generate sufficient revenues or obtain debt or equity financing, we will not be able to earn profits and may not be able to continue operations."

So they need this K & J arrangement to close out the deal and keep the company going. There is no bank loans for companies like this. So, IMO, it may get a little rocky with the stock but in the end it will all pay off.