Sugarmade to Expand BudCars into Los Angeles Market
April 16 2020 - 8:15AM
InvestorsHub Cannabis NewsWire
NEW YORK, NY -- April
16,
2020
-- InvestorsHub NewsWire -- Sugarmade,
Inc. (OTCQB:SGMD)
("Sugarmade", "SGMD", or the "Company"),
and
its BudCars
Cannabis
Delivery Service ("BudCars"),
is
excited to announce the expansion of BudCars
into
the Southern California marketplace through the acquisition
of two
locations
in the greater Los Angeles area.
The Company's
primary
locations
in
the Sacramento area
have
been
experiencing dramatic growth,
with revenues consistently
increasing
10%
week-over-week, driven by exploding demand for contactless delivery
of cannabis products due to the coronavirus lockdown.
The
Company now expects to surpass $30 million in
annualized revenues
at
these locations.
"Our Sacramento locations will pass the $10 million mark for
annualized
sales
within the next 60-90 days," stated
Jimmy Chan, CEO of Sugarmade. "The
growth has been so dramatic that we have had to drastically revise
our expectations to the upside, which demands expansion, both in
terms of staff and fleet in Sacramento, and in terms of regional
expansion into Southern California. As a
result, we are acquiring
two
distribution
hub locations
in the
LA
area with
cannabis
licenses included
so we can hit the ground running."
Based on data
from its current operations as well as trends in the LA
region, management
believes that each additional new BudCars
hub
will provide an annual revenue run-rate of $15-20
million
as a moderate
baseline
estimate.
The Company also notes that it is seeing a consistent
19-20%
net profit on sales at its Sacramento locations and believes this
will translate to new locations, fueling further expansion
potential for
up to
as many as 20 new
BudCars
hubs
across
California over the coming 18-24 months driven primarily
by
cash from operations.
"We are hiring and expanding our fleet as fast as we can right now
to keep up with demand," continued
Chan.
"We can't expand fast enough. But that's a great problem to
have, and
LA represents an ideal new
market
for BudCars."
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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