Sugarmade
Takes Steps
Toward Establishing
Licensed Cannabis Cultivation in Northern California
NEW
YORK, Sept.
23,
2020 -- InvestorsHub NewsWire – Sugarmade, Inc.
(OTC:
SGMD) [PLW1][NP2] ("Sugarmade"
or the "Company") is excited
to
announce
the
signing of a
non-binding Letter of Intent (the "LOI") with LMK Capital, LLC
("LMK").
Sugarmade
and
LMK have agreed to work toward the
negotiation of a definitive lease agreement for
access to as
much as 40 acres
of property in Northern California.
The
Company intends to use 5
acres
of
the
property
to
operate a regulated and licensed cannabis cultivation
business.
Jimmy
Chan,
Sugarmade's
chairman
of the board,
chief
executive
officer,
chief
financial
officer,
and majority stockholder,
is
also
majority
owner of LMK.
"We
continue to take strategic steps toward broadening
our exposure to the growth trend in the cannabis market,"
Chan
commented.
"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."
Sugarmade
has a
40% stake in BudCars,
with the option to acquire an additional 30%. Because
BudCars
is a
rapidly growing distribution channel, Sugarmade
believes
it will
have a direct
channel in
the marketplace to establish its
own
branded cannabis product line,
which can then be distributed through multiple distribution
partners at premium pricing.
Sugarmade's
in-house
analysis suggests that control over 5
acres
of this property carries the potential to yield as much as
8,000 pounds
(or
more than 3,628,700
grams) of cannabis flower per year.
The
LOI is nonbinding on the parties and there can be no assurance the
parties will enter into a
definitive lease
agreement.
About
Sugarmade, Inc.
Sugarmade,
Inc. (OTC:
SGMD) is
involved
in the
following two
main business areas: (i)
the
supply of consumable products to the quick service
restaurant subsector of the restaurant industry, and as an importer
of nonmedical personal protection equipment to business and
consumers, and (ii)
investment in
the Budcars
licensed
cannabis delivery service brand ("Budcars"
or the "Budcars
Brand")
and joint
ownership and operation of Budcar's
first
operating location in Sacramento, California. For
more information, visit
www.Sugarmade.com.
FORWARD-LOOKING
STATEMENTS: This press
release contains
forward-looking statements within the meaning of the federal
securities laws that involve risks and uncertainties.
Forward-looking statements include statements the Company makes
concerning plans, objectives, goals, strategies, future events,
future revenues or performance, capital expenditures, financing
needs and other information that is not historical information.
When used herein, the words "estimates," "expects," "anticipates,"
"projects," "forecasts," "plans," "intends," "believes,"
"foresees," "seeks," "likely," "may," "might," "will," "should,"
"goal," "target" or "intends" and variations of these words or
similar expressions (or the negative versions of any such words)
are intended to identify forward-looking statements. All
forward-looking statements are based upon information available to
the Company on the date hereof. These forward-looking statements
are subject to risks, uncertainties and other factors, many of
which are outside of the Company's control, that could cause actual
results to differ materially from the results discussed in the
forward-looking statements,
including, among other things, the matters discussed herein. All
forward-looking statements apply only as of the date of this
press
release and
are expressly qualified in their entirety by the cautionary
statements included herein. The Company undertakes no obligation to
publicly update or revise forward-looking statements to reflect
events or circumstances after the date made or to reflect the
occurrence of unanticipated events, except as required by
law.
Corporate
Contact:
Jimmy
Chan
+1-(888)-982-1628
info@Sugarmade.com
Public
Relations:
Tiger Global
Marketing & Branding Agency
info@TigerGMP.com
www.TigerGMP.com
Corporate
Communications:
InvestorBrandNetwork
(IBN)
Los Angeles,
California
www.InvestorBrandNetwork.com
310.299.1717
Office
Editor@InvestorBrandNetwork.com