Sugarmade Comments on California's
First Month of Recreational Cannabis Legalization Still
Bottlenecks But Plays Well
Into Sugarmade's Corporate
Initiatives
City of Industry, CA --
February 15, 2018 -- InvestorsHub NewsWire
-- Sugarmade, Inc., (OTC:SGMD)
one of the largest publicly traded cannabis-related hydroponics
supply companies, today commented on the state of affairs relative
to the first month of recreational legalization of cannabis in
California.
Mr. Jimmy Chan, CEO,
commented, "Our view is that the first month of recreational
legalization in California went rather well, but there are clearly
still bottlenecks to be worked out. However, we believe the
phased in approach adopted by California regulators is playing well
into our corporate business plan, as we continue to grow our
facilities and staff to prepare for significant growth and to meet
the coming demand, as more licenses are issued."
The California market is
still experiencing issues with local licensing. This local
licensing is required before state licenses can be granted. Some
local jurisdictions have been relatively slow to install licensing
policies. For example, in Humboldt
County, which is the heart of the Emerald Triangle and one of the
most important cannabis cultivation areas in the world, only 90
local cultivation permits have been issued out of approximately
2,500 applications. Many other local
jurisdictions have similar issuance statistics. These delays are
occurring at a time when dispensaries are seeing huge increases in
traffic. While many dispensaries serviced only a few dozen
customers each day during 2017, it is currently not uncommon for
dispensers to have long lines and to service over 1,000 customers
per day. Sugarmade believes there is even more
demand than is represented by these long lines, as many would be
customers are discouraged from even attempting to purchase cannabis
products.
Mr. Chan continued, "While
there is skyrocketing demand, there are still a relatively
low number
of dispensaries,
cultivators and other cannabis operators that are actually
licensed. While inconvenient for cannabis customers who forced to
wait in lines that are often around the block, we believe this
bodes well for our business throughout 2018 and into
2019. As more cultivators are
granted licenses, these entities will need to purchase cultivation
supplies. We
feel this puts our Company in a very good
position.
About
Sugarmade,
Inc. (OTC:SGMD):
Sugarmade, Inc. is a
product and brand marketing company investing in products and
brands with disruptive potential. Sugarmade's
brands
include ZenHydro.com, CarryOutSupplies.com, BudLife
Cannabis
Storage Solutions, CaliGrownSupplies.com, and Sriracha
Seasoning Stix, a revolutionary culinary seasoning product. For
more information on the Company's products, please
visit http://www.Sugarmade.com.
For inquiries please
contact Jimmy Chan at (888) 982-1628 or info@Sugarmade.com.
FORWARD-LOOKING
STATEMENTS: This release contains "forward-looking statements"
within the meaning of the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Forward-looking
statements also may be included in other publicly available
documents issued by the Company and in oral statements made by our
officers and representatives from time to time. These
forward-looking statements are intended to provide management's
current expectations or plans for our future operating and
financial performance, based on assumptions currently believed to
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earnings, cash flows, results of operations, uses of cash and other
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Because
forward-looking statements relate to the future, they are subject
to inherent risks, uncertainties and other factors that may cause
the Company's actual results and financial condition to differ
materially from those expressed or implied in the forward-looking
statements. Such risks, uncertainties and other factors include,
among others such as, but not limited to economic conditions,
changes in the laws or regulations, demand for products and
services of the company, the effects of competition and other
factors that could cause actual results to differ materially from
those projected or represented in the forward looking
statements.
Any forward-looking
information provided in this release should be considered with
these factors in mind. We assume no obligation to update any
forward-looking statements contained in this report.