- SGMD signs agreement to lease five acres of land in Northern California
- Company preparing required documentation to apply for approval for construction of greenhouses, processing building
- Sugarmade to market cannabis as both white-label and branded cannabis products; also likely be distributed through BudCars Cannabis Delivery Service
Sugarmade (OTC: SGMD), a product and branding marketing company investing in operations and technologies with disruptive potential, has signed an agreement to lease five acres of land in Northern California (https://cnw.fm/u51Zk). SGMD intends to use the property, which is zoned for cannabis cultivation, to establish and operate a licensed cannabis production business capable of producing as much as 3.6 million grams of high-quality cannabis flower per year.
“We believe we have all of the strategic pieces in place to capitalize on cultivation, with the market currently chronically undersupplied,” said Sugarmade chairman of the board, CEO and CFO Jimmy Chan. “We also have relationships in place, especially through our BudCars investment, to hit the ground running on the branded products side, driving strong margins up and down the chain.”
Sugarmade is leasing the land from LMK Capital LLC and is in the process of obtaining cannabis cultivation licensing for the property. In addition, SGMD is preparing archaeological and biological surveys and assembling architectural and engineering plans, the initial steps necessary for construction of greenhouses and a processing building. The company is working closely with county officials as it follows the outlined processes and prepares to submit appropriate documentation and applications for approval.
The company plans to market the cannabis harvested from the farmland in a variety of ways, including as both white-label and branded cannabis products. Some of the cannabis will also likely be distributed through BudCars Cannabis Delivery Service (BudCars), a rapidly growing California cannabis delivery company, in which Sugarmade owns a 40% stake with the option to acquire an additional 30%.
“We continue to take strategic steps toward broadening our exposure to the growth trend in the cannabis market,” Chan commented (https://cnw.fm/aCON8). “We see this as a secular growth trend that is still very much in its early innings. And we believe our positioning in California puts us close to the current epicenter of that trend. In addition, we are committed to increasing verticalization of operations as a context for our investment in the BudCars cannabis delivery business. If we are able to finalize the lease, we expect that this could drive a substantial widening of margins on the growing volume of BudCars sales.”
BudCars is a retail business that offers same-day delivery of top-quality cannabis. Customers choose from a variety of products including edibles, flower, pre-rolls, vapes, tinctures and concentrate across dozens of premium brands. Once consumers complete their purchases online, they receive their order the same day via BudCars Cannabis Delivery Service.
Sugarmade Inc. is a product and branding marketing company investing in operations and technologies with disruptive potential. In addition to its financial interest in the BudCars brand, SGMD’s brand portfolio includes CarryOutsupplies.com and SugarRush(TM).
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://cnw.fm/SUGAR
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