Sugarmade Issues Shareholder Letter on Budcars Growth and Expansion Strategy
April 22 2020 - 8:30AM
InvestorsHub Cannabis NewsWire
NEW YORK, NY -- April 22, 2020 -- InvestorsHub NewsWire
-- Sugarmade, Inc. (OTCQB:SGMD)
("Sugarmade", "SGMD", or the "Company"),
and
its BudCars
Cannabis
Delivery Service ("BudCars"),
issues
the following Letter to Shareholders from the CEO:
Dear Valued Shareholder,
On behalf of the entire team, allow me to start out by expressing
our gratitude for your patience and commitment as we navigate what
increasingly appears to be an extremely promising road stretching
out ahead of Sugarmade. My goal today is to discuss that road ahead
and to provide shareholders with a deeper sense of perspective as
we expand our BudCars
segment
to
capitalize on this extremely powerful growth
opportunity.
BudCars
is
quickly becoming a powerful presence in the California cannabis
delivery marketplace. Our primary hub in Sacramento has experienced
extremely rapid growth in terms of total orders, sales, daily
volume, staff, and fleet. And this growth has been dynamic, robust,
and sustained over the past two months. We believe this trend will
continue to define our 2020 operational outcome distribution,
granting us strong conviction in our aggressive revenue targets, as
outlined in Sugarmade's recent corporate communications.
Our expectation is that we will surpass the $10 million annualized
revenue target before August (possibly well before), putting
BudCars
on a
pace to reach and surpass $30 million in annualized
revenues by
year end. Especially,
with the supports of the expansion of 2 new locations.
As we recently announced, we are now expanding into the
Greater
Los
Angeles regional
marketplace,
which represents perhaps the biggest and most lucrative cannabis
delivery market in the world. We are initially set to open two
new BudCars
distribution
hubs in this area. Given our research into this regional
marketplace opportunity and our experience thus far with the
BudCars
business
model in Sacramento, we anticipate an annualized revenue run-rate
of $15-20 million at a minimum at each of the new LA
locations.
We also plan to continue to expand BudCars
across
the California marketplace. Underlying demand for this service
seems bottomless, and we believe we have only just started
to scratch
the surface of the
potential for growth in this segment. But we are
also very
conscious of our responsibility to all of our stakeholders to
maintain a fiscally viable path forward each step of the
way.
As a final note, to demonstrate my personal
commitment
and conviction, I have contractually and permanently waived my
right to convert my own 2.5 million preferred share
stake
in
Sugarmade into common shares, so they can never be brought into the
common share market as supply.
Once again, I cannot overstate how excited I am about this Company,
our exceptional base of loyal shareholders, and the promising path
we have in front of us. I look forward to updating you again as we
accomplish new milestones.
Warm Regards,
Jimmy Chan, CEO
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
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