- SGMD aims to market next-generation hemp machinery and proprietary extraction technologies
- Hemp extraction and cultivation is a growing business, as the passage of the 2018 Farm Bill continues to result in rising demand
- SGMD plans to provide both legacy and new technology, including water-based sonification extraction, microwaves and other low-cost techniques and equipment
Sugarmade Inc. (OTCQB: SGMD) plans to offer next-generation equipment and techniques to its customers that process and extract from industrial hemp to help meet what is anticipated to be a peak crop in 2019. To this end, SGMD was recently featured in a CannabisNewsWire analysis article discussing the hemp market’s rising demand for processing power (http://nnw.fm/89WwK).
SGMD’s new initiative includes making available to its customers new technology such as water-based sonification extraction, microwaves and other techniques. These machines could reduce the cost of extraction and help cultivators increase output without significant increases in cost. SGMD is not in the hemp cultivation business itself, but it has a business model centered on supporting cultivators.
The combination of rising demand and the passage of the 2018 Farm Bill, which provides legal relief for hemp cultivators, is driving what is expected to be a record 2019 crop of industrial hemp. SGMD’s initiative is expected to increase the company’s revenue base as it introduces new-generation machinery and proprietary technologies for hemp extraction (http://nnw.fm/oq5JX). Some of the new offerings, which are more efficient and reduce the cost to cultivators seeking to meet the high demand, come from Southern China.
“We plan to not only market several domestic technologies, but also next-generation technologies we plan to implement from Southern China, where hemp cultivation and herbal extraction technologies are well ahead of North America,” SGMD CEO Jimmy Chan stated in a news release. SGMD sees an imbalance between cultivation outputs and extraction capacities within the industry. This record hemp harvest is creating a widespread need for efficient, cost-effective methods of processing within the industry, and SGMD is well-positioned to provide a solution.
“It is clear the 2019 and 2020 hemp cultivation seasons will be massive,” Chan added. “We expect the power balance between the cultivators and extractors to continue to heavily favor extractors, and we are seeing that part of the industry expand massively to be able to handle the significant amount of hemp biomass that will be harvested and will ultimately be processed.”
New Frontier Data projects that hemp sales in the United States will reach $2.6 billion by 2020 (http://nnw.fm/6WxqI). Industrial hemp will have a broad impact on the market, the research shows.
Based in Monrovia, California, SGMD is a hydroponics and cultivation supply company that’s committed to supporting the industrial hemp sector. The company is also involved in product and brand marketing for diverse industries, with numerous operations such as packaging and paper goods.
For more information, visit the company’s website at www.Sugarmade.com
NOTE TO INVESTORS: The latest news and updates relating to SGMD are available in the company’s newsroom at http://nnw.fm/SUGAR
NetworkNewsWire (NNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) NetworkNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. NNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
To receive SMS text alerts from NetworkNewsWire, text “STOCKS” to 77948 (U.S. Mobile Phones Only)
For more information please visit https://www.NetworkNewsWire.com