|From: NetworkNewsWire (Rep: 0)||Date: 01/17/2020 15:49|
|Forum: Penny Stocks - Msg #4293 - List SGMD msgs ||Thread #674117617 (Rec: 0) |
|NetworkNewsBreaks – Sugarmade, Inc. (SGMD) Rescinds Agreement, Considering Opportunities it Views as Superior|
Sugarmade (OTCQB: SGMD), today announced the rescission of an agreement to acquire a hydroponic equipment supplier and, in a filing with the U.S. Securities & Exchange Commission, outlines that approximately 1.2 billion common share equivalents will be returned to the company’s treasury. According to the update, Sugarmade’s board of directors has determined that the business combination is no longer viewed as the best shareholder maximization strategy and is considering numerous other opportunities that it believes are superior. “The hydroponic transaction was proposed more than two years ago and since that time the industry has changed significantly. Simply Put – We have looked long and hard at the industry situation and we have determined there are numerous other potentially larger opportunities at this time for Sugarmade and its shareholders,” SGMD CEO Jimmy Chan said in the news release. “The previous transaction is not the best way for us to maximize shareholder value. We are very pleased to be returning all of the issued shares to the treasury, which significantly lowers our outstanding shares, placing us in a prime spot as an industry consolidator of the many troubled assets in the sector. Thus, as a board of directors, we are taking the bold step to rescind the Past of the industry in favor of the Future of the industry and the more lucrative opportunities that are currently under consideration.”
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