Replies to post #20461 on Sugarmade Inc (SGMD)

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The proceeds model was based on an "assumed" price of .086.

Per S-1, section 22 Use of Proceeds:
"We assume a price of $0.086 (85% of the average closing trading price of $0.102 for the last 24 months) per share to complete the offering."

Problem is SGMD share price is presently 25% of that revenue model..Given a 100% optimal projection, the original $7m acquisition funding projection is reduced to $1.75m..This scenerio alone frankly won't cut it..Assuming .02 price range, will SGMD need to register 4x the 138m share offering?

Granted, the model was based on .086 share price..and if SGMD price spikes over a dime, the revenue model numbers are much better..


You might be on to something with that $7m cash number..idk?..recall the original Dec2017 MMA 20 yr lease was $6m cash plus another $2m needed to acquire if acquisition option exercised..($8m nearly matches the K&J $7m acquisition proceeds revenue model + the $800k cash deposit per filings)..If so, how many additional shares required to complete deal? Between selling shares to raise $7m and issuing future equity restricted shares , the Biz/BZRTH acquisition might chew up a ton of the 2B A/S..Really would like for Jimmy to clarify acquisition price...at least state 1x sales! I keep harping on that, but important..