Hydroponic cultivation supply business dramatically increasing as global cannabis industry explodes

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Now that the legal marijuana and global cannabis markets have exploded, a spotlight is shining bright on the cultivation and growing services segment of the industry, that includes Hydroponic systems and accessories. Hydroponically grown plants grow up to 50% faster and produce higher yields of better quality solution for growing plants in a nutrient-rich water base as opposed to soil. Leaders in the industry are aggressively marketing innovative equipment to cannabis cultivators, as well as opening storefronts across the country in legal states. Cannabis growers have been using different hydroponic methods for many years as a way to maximize yields and speed up growth, the two main advantages of soilless growing which today is generating huge opportunities in the cannabis growing industry. Active Companies from around the market with current developments this week include: Sugarmade, Inc. (OTC: SGMD), Medical Marijuana Inc. (OTC: MJNA), Real Brands Inc. (OTC: RLBD), Cannabis Science Inc. (OTC: CBIS), HEXO Corp. (TSX: HEXO) (OTC: HYYDF).

Sugarmade, Inc. (OTCQB:SGMD) BREAKING NEWS:Sugarmade today announces the signing of a binding Definitive Agreement to acquire Sky Unlimited, LLC, which through its AthenaUnited.com operations and website offers multiple popular hydroponic brands to several growing agricultural cultivation sectors. As a result of this acquisition, Sugarmade is raising its revenue guidance for calendar 2019 from $30 million to $70 million. Sugarmade expects this acquisition to be highly accretive to common shareholder value.

Under the terms of the Definitive Agreement, Sugarmade will assume all operations, brand assets, customers and liabilities of Sky Unlimited, and will retain all employees. Sugarmade will issue the owners of Sky Unlimited ten million non- refundable shares of Sugarmade common stock in exchange for a non-shop period agreement, during which final due diligence will be completed. Subject to a successful two-year audit of the Sky Unlimited operations, Sugarmade will pay the owners a combination of cash and common shares equal to the audited revenues realized by Sky Unlimited during the 12-month period preceding the close of the transaction, which is scheduled for January of 2019. It is envisioned these payments of cash and Company shares will total $40 million, but the actual amount will be determined by the revenue performance of the acquired business operations. The specific details of the Definitive Agreement will be outlined in a subsequent filing with the U.S. Securities & Exchange Commission over the coming days.

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"This acquisition will further boost our already very rapid growth rate and is expected to be high accretive to common shareholder value. As a result, we are once again raising our revenue guidance for calendar 2019," commented Sugarmade's CEO, Jimmy Chan. "Sky Unlimited and Athena are complementary to our existing business operations allowing us to not only increase our emphasis on brands, but also to diversify our revenue streams to now include the larger commercial cultivation operations."

The management teams of both companies are seeing a rapid evolution in the hydroponic and cultivation supply sector with the business moving away from the home and small operator and toward the significantly sized commercial cultivator. Sky Unlimited's operations are well positioned against this rapidly evolving trend with most of its revenues being derived from the wholesale market and via commercial operations. Mr. Chan continued, "We are seeing a clear trend in our particular sector of the cultivation supply business. Many of the smaller growers are being replaced by very large grow operations that are purchasing large amounts of products from a limited set of suppliers. Matching this trend is Sky Unlimited as commercial accounts are now over 50% of operations and still growing. Thus, we believe we are especially well positioned via this business combination. Sky Unlimited also sees strong benefits for its existing and future customers as the increased capitalization and lowered cost of capital will allow it to further expand its brands and to accelerate the development of new products and technologies."

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