The penny stock of SugarMade, Inc. (OTC:SGMD) allowed for traders to CarryOutSupplies in the form of massive gains today after the Company announced hours before the open when they announced the signing of signed a definitive merger agreement with the producer and wholesaler of custom printed and generic paper products to more than 3,000 takeout restaurant establishments. Opening the trading session at just 0.0189, it took more than an hour of trading before shares of SGMD stock broke past 0.05 allowing for nearly every early trader to be able to book profits in excess of 500% before lunch was over. Although the deal was initially blocked by the major note holders a week ago, the deal which is supposed to close tomorrow could create another sweet surge of volume for even more profits to CarryOut.
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SGMD Stock Quote
Market Cap: Approx 44.80M
Last: 0.28 ▲ +0.2645 (+1706.45%)
Dollar Volume: $73,603
1st Resistance Point: 0.2957
1st Support Level: 0.0837
52Wk High: 1.32
52Wk Low: 0.0015
The deal between SugarMade and CarryOutSupplies, bka SWC Group Inc., was in the works since May 2 and originally agreed upon back on June 4 whereby CarryOut was to have gotten 62,500,000 shares of SGMD stock for the acquisition of all its assets and liabilities. CarryOut apparently booked revenues of in excess of $9,000,000 during 2013 from the sales and distribution of their cut paper to major corporations and large institutions that desire to lessen the environmental impact of corporate operations, about 45X what Sugarmade was on track to book for their fiscal year ended June 30, 2013 before they stopped filing quarterly updates (last Q filing was for the 3 and 9 months ended March 31, 2013 whereby revenues were $51,645 and $165,569, respectively).
At the start of the month, SugarMade announced that the deal had been blocked since it failed to receive adequate support from convertible note holders and certain creditors to proceed forward with which had CEO Clifton Kuok Wai Leung prepared to “cease its operation on July 9, 2014 and liquidate.” Money and stock was what some of the creditors representing a majority of the money owed by the Company were willing to accept in order to release any potential claims, but apparently, several other creditors, according to the 8K filed on July 1, were not in accords with.
The PR issued at around 6AM EST today pretty much indicates that the deal with CarryOutSupplies is a done one since there are to be around 71 million shares issued to CarryOut and approximately 160 million to be issued and outstanding when its all over compared to the 9,238,526 that was last reported as of May 13, 2013. Despite there obviously being a huge increase in the total number of shares in the float now with an unknown amount having been earmarked for convertible note holders and creditors of SugarMade, SGMD stock doesn’t seem to be diluting the way many assumed it would after such a massive upticking afternoon more than an hour after anyone could have bought shares for under 0.05.
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About SGMD Stock
SugarMade, Inc. is a development stage company principally engaged in the business of marketing and distributing environmentally friendly non-tree-based paper products.
Issued and Outstanding: appox. 160,000,000
Last 4 Trading Sessions:
Days like today where SGMD surges to remind people that penny stocks can be HUGE if you spot the right information and momentum moves at the right time. Given that we’ve seen SGMD stock surge before on a single trading session and collapse for months as well, IF the deal is inked and confirmed tomorrow as expected, another solid session could be in the works for the sugarcane and bamboo based paper supplier.
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