SUGARMADE, INC. (OTCMKTS:SGMD) Files An 8-K Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure.
On October 12, 2020, Sugarmade, Inc. (the “Company”) issued a letter to stockholders covering certain business updates. A copy of this letter to stockholders is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information contained in the websites is not a part of this Current Report on Form 8-K.
On October 14, 2020, the Company issued a press release announcing certain results of operations for the quarter ended September 30, 2020 for BudCars licensed cannabis delivery service brand (“BudCars”). The Company is an investor in BudCars and joint operator of BudCars’ first operating location in Sacramento, California. During early 2020, the Company gained a 40% stake in BudCars and in the Sacramento delivery operations via the acquisition of a 40% stake in Indigo Dye Group (“Indigo”). Under the terms of the Company’s agreement with Indigo, the Company also acquired an option to purchase an additional 30% interest in Indigo, upon the closing of which would provide the Company with a 70% controlling interest. As of the date hereof, this option has not yet been exercised, the Company’s stake in Indigo remains at 40%, and there is no assurance that the Company will exercise the option to acquire an additional 30% interest in Indigo. However, since late May 2020, the Company has been actively involved in development of Indigo’s operations with power to direct the activities and significantly impact Indigo’s economic performance. The Company also has obligations to absorb losses and right to receive benefits from Indigo. As such, in accordance with the Financial Accounting Standards Board’s Accounting Standards Codification 810-10-25-38A through 25-38J, Indigo is considered a variable interest entity (VIE) of the Company. A copy of this press release is attached hereto as Exhibit 99.2 and incorporated herein by reference. The information contained in the website is not a part of this Current Report on Form 8-K.
The information included in Item 7.01 to this Current Report on Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The information set forth under this Item 7.01 shall not be deemed an admission as to the materiality of any information in this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
| 99.1 | Letter to Stockholders dated October 12, 2020. |
| 99.2 | Press release of the registrant dated October 14, 2020. |
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Sugarmade, Inc. Exhibit
EX-99.1 2 sgmd-20201020_8kex99z1.htm EX-99.1 Exhibit 99.1 Sugarmade Issues Letter to Shareholders on Coming Expansion Steps NEW YORK,…
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About SUGARMADE, INC. (OTCMKTS:SGMD)
Sugarmade, Inc. is engaged in the supply of products to the quick service restaurant sub-sector of the restaurant industry. The Company is a distributor of paper products derived from non-wood sources. As of June 30, 2015, the Company’s operating unit, CarryOutSupplies.com, which is a producer and wholesaler of custom printed and generic takeout supplies served more than 3,000 quick service restaurants. It conducts its operations in an industry segment, including paper and paper-based products, such as paper cups, cup lids, food containers and others. Its products also include double poly paper cups for cold beverage, yogurt cups, ice cream cups, soup containers and plastic spoons. It is a manufacturer and distributor of tree free copy and printer paper products, made from sugarcane waste (bagasse) and bamboo for home and office environments under the Sugarmade brand name. It has also acquired a minority stake in various patents and products for seasoning and spices for food items.