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Sugarmade Inc. (OTCMKTS:SGMD) Turns To Hemp Production To Reinvigorate Growth Prospects

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Sugarmade Inc. (OTCMKTS:SGMD) has made a strategic investment in Hempistry as it tries to reinvigorate its growth prospects. The two have since commenced hemp cultivation in Kentucky in pursuit of opportunities in the multibillion-hemp industry.

Sugarmade Price Analysis

The investment comes hot on the heels of the stock taking a significant hit over the past year. Sugarmade has lost more than 80% in market value, having succumbed to bearish pressure from short-sellers.

The company has since sought to bolster its sentiments among investors by expanding its footprint into the hemp industry. As the stock continues to languish at an all-time low, engulfed in a long-term bearish trend line, it waits to be seen if an expansion to the hemp sector will trigger a bounce back.

A wave of positive news could help avert further slides as the stock is trading in a precarious position at the $0.01 level. A rally followed by a close above the $0.02 level could help fuel a bounce back from current lows setting the stage for a comeback.

Hempistry-BZRTH Investment

A strategic partnership with Kentucky based hemp cultivator Hempistry marks an important milestone in Sugarmade evolution. The company now stands to; average its experience in the development of hydroponic and cultivation products to cultivate much-needed help.

An investment in Hempistry sets the stage for Sugarmade to become a leading supplier of hemp across the country. The company is in the process of completing the acquisition of leading cultivation supplier BZRTH.

“Our investment in Hempistry, our commencement to the state of Kentucky and our pending acquisition of BZRTH provide Sugarmade with multiple options for growth, while our recently effective S-1 filing expands our ability to finance the many initiatives in front of the Company,” said CEO, Jimmy Chan.

The company is planning to invest $1 million in the privately held Hempistry as it seeks to get a foothold of the hemp production business.  The investment underscore the company’s push for inorganic growth after years of underperformance. While the stock has taken a significant hit, a turnaround could be in the offing as underlying fundamentals show signs of improvement.

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