SUGARMADE, INC. (OTCMKTS:SGMD) Files An 8-K Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure
Sugarmade Inc., a Delaware corporation (the Company) makes the
following disclosures to Section 13 or 15(d) of The Securities
Exchange Act of 1934, generally referred to as Regulation FD
Disclosure. Considering the contact outlined below represents the
single largest contract in its corporate history, the Company
believes such a disclosure may be required under Regulation FD
Disclosure.
On June 2, 2016, the Company signed a twelve (12) month supply
contract for the manufacturing, supply and distribution of
various hydroponic and agricultural products to be distributed to
business and consumers. The Company expects this contract, on
which work has already begun, to be fulfilled over the 12-month
period beginning on June 2, 2016.
The Company has recently reached an agreement with an
institutional investor for terms to pay off the entirety of the
Company convertible debentures and for a replacement financing
totaling $1.35 million. Approximately $500,000 of these funds
will be used for working capital purposes in order to finance the
Companys growth initiatives, including, but not limited to, the
$3 million supply contract outlined herein. The Company plans to
seek additional working capital to fully fund this growth
initiative and other contracts the Company is seeking. The
Company plans to make additional disclosures as these events take
place.
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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.