Replies to post #32227 on Sugarmade Inc (SGMD)

[bombaytonic]

So why is the 8k saying they need additional funding to satisfy debt? It doesn’t add up.

[Catapult Trader]

SO WHY THIS?

Item 7.01 Regulation FD.

The Company believes that in order to fund necessary working capital to implement our business consolidation plan and satisfy current debt obligations, the Company will have to obtain debt financing, and/or sell additional equity securities in future financings. Additional equity financings may cause further dilution for existing stockholders. Current markets conditions and the COVID-19 pandemics impact on the global economy are having a significant adverse impact on both debt and equity financings. There can be no assurance that any such additional financing will be available or, if available, that its terms will be satisfactory to us. In addition, our costs and expenses may be higher than anticipated, and there can be no assurance that we will not be required to seek additional financing to meet our operating cash requirements or other financing and debt service needs. Failure to obtain additional financing would have material adverse effect on our results of operation and, could result in our defaulting under current debt payment obligations.