Letter to Shareholders on
Verticalization, Expansion, and the
Path Ahead in 2021
InvestorsHub NewsWire – Sugarmade, Inc.
("Sugarmade" or the "Company") is pleased
the following Letter
would like to express our gratitude for your patience
commitment as we
continue to steer Sugarmade into what
we hope will be a
leadership role in the rapidly growing cannabis marketplace as a
vertically integrated farm-to-door solution for cannabis
was a landmark year for Sugarmade as we established, through our
capital and operational investment in
delivery service, a
distinct and increasingly vertical model for delivering top
cannabis-based products to a growing marketplace. We
believe this marketplace remains
insufficiently supplied and inconsistently accessible for consumers
who want more
reliable quality and greater convenience.
that end, we continue to work to expand our
some delays in opening
LA hubs, but we continue to work with the city and anticipate
near term. We also continue
work to widen our delivery
addition, we continue to
verticalize our model, creating a full farm-to-door structure
to produce high-quality
branded cannabis products positioned in a vertical in-house supply
expect that this will provide Sugarmade
with optimal margins. We
that we will
also be better able
to make use of 280e tax deductions related to production once we
have a more vertical structure in place.
our vertical vision coming together, our advantageous brand
development positioning, and an increasingly promising macro
context, we are very
about the year in front of us.
again, we would like to express our sincere gratitude to all our
stakeholders. Shareholder value is our number one priority, and we
very much look forward to keeping you abreast of Company
developments as we reach new milestones along the way.
in two main business areas: (i)
supply of consumable products to the quick-service restaurant
sub-sector of the restaurant industry, and as an importer of
non-medical personal protection equipment to business and
consumers, and (ii)
investor in the Budcars licensed cannabis delivery service brand
and as an
owner in Budcars'
operating location in Sacramento, California. During early 2020,
the Company gained a 40% stake in the Budcars brand
and in the Sacramento delivery operations by
a 40% stake in Indigo Dye Group ("Indigo"). Under the
of the agreement with Indigo, Sugarmade acquired an option to
purchase an additional 30% interest in Budcars, upon which will
provide the Company with a controlling interest. As of the
the option has not yet been exercised
the Company's stake in Budcars remains
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
include, among others, statements relating to future sales,
earnings, cash flows, results of operations, uses of cash and other
measures of financial performance.
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
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 herein.
& Branding Agency