Sugarmade
Announces
Budcars Delivery
Volume
Growth Now Supports $15M+ 2020 Revenue Target
NEW YORK, NY -- March 4, 2020 -- InvestorsHub NewsWire
-- Sugarmade,
Inc. (OTCQB:SGMD)
("Sugarmade", "SGMD", or the "Company") is excited
to announce
a
dramatic 300 percent
sequential
monthly jump in delivery volume in BudCars
Cannabis
Delivery Service ("Budcars") in February. The
rise in volume follows
the
Company's negotiated agreement toward a controlling stake in
Budcars and its investment in expanding the leading delivery
service's operations and reach in Northern California.
Management
now projects a Budcars
top-line
run-rate capable of surpassing $15 million in sales in 2020,
provided
recent data on growth in daily orders is reliable and indicative of
the impact of the Company's recent measures over coming
months.
The Company has negotiated a 40 percent
stake
in Budcars
with
a provisional option to assume a controlling ownership position
through the acquisition of an additional 30 percent
stake.
"Some
of our shareholders have suggested that our vision
for a
massively expanded and vertically integrated Budcars
might
be explained to the world as the
'Uber
Eats of the cannabis market.'
But
we believe that's actually
a dramatic
underestimation
of where
Budcars
is
headed,"
remarked Jimmy Chan, CEO of Sugarmade. "This is far more promising
from a bottom-line perspective,
given
that we aren't simply delivering someone else's product. The
retailer gets the juicy
20
percent
net
margin in this business. We
are positioning ourselves as
a
"Cannabis
concierge service" focusing on a truly unique cannabis
experience."
Management notes that recent regulatory changes in the California
legal cannabis market point to a dramatic turnaround in progress in
2020 as competition from unregulated suppliers is suppressed,
widening margins for licensed producers and distributors. The
Company cites this transition as key in driving its strategic
investment in Budcars, which was predicated on a verticalization
premise that
positions the
Company as a dominant cannabis supplier, driving market share gains
through the value-add of its efficient delivery service without
sacrificing the core margin opportunity coming into place as a
legal cannabis supplier.
Since Sugarmade management became heavily involved in the
day-to-day
operational and strategic foundation of Budcars in early
February,
following
its initial investment and investor agreement, the Company has
witnessed a dramatic expansion in overall delivery volume with
February deliveries topping January volume by more than 300
percent.
The Company believes this jump has been driven by an improving
overall cannabis market in California, an infusion of operational
talent and resources, and an expanded geographic service
area.
In
order to meet demand,
Budcars
is
increasing
its
road
fleet,
inventory, staffing, and will be positioning strategic
billboard
campaigns along major freeways in the service region.
Chan continued, "Our move to take a controlling interest in
Budcars
is
about capturing the healthy
margins
set to define the California legal cannabis market in 2020 and
beyond, and about nailing down a competitive advantage in market
share afforded by a well-organized delivery
service, which is an enormous customer hot-button in the legal
cannabis marketplace. So far, we are seeing powerful
performance-based feedback from the marketplace that we're on the
right track."
About
Sugarmade, Inc.
Sugarmade, Inc. (OTCQB:
SGMD) is a product and branding marketing company investing in
operations and technologies with disruptive potential. Our Brand
portfolio includes CarryOutsupplies.com, SugarRush™
and Budcars.com. For more information please reference
www.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
be valid. They can be identified by the use of words such as
"anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "would," "could," "will" and other words of
similar meaning in connection with a discussion of future operating
or financial performance. Examples of forward
looking statements
include, among others, statements relating to future sales,
earnings, cash flows, results of operations, uses of cash and other
measures of financial performance.
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.
Corporate
Contact:
Jimmy Chan
+1-(888)-982-1628
info@Sugarmade.com
Corporate
Communications:
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York
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