Sugarmade Rides the Wave of Positive Change in the CA Cannabis
Cannabis Delivery Service
NEW YORK, NY -- February 11, 2020 -- InvestorsHub NewsWire
("Sugarmade", "SGMD", or the "Company"), today announces the
closing of an agreement to acquire a significant stake in
Service, owned by Indigo Dye Group Corp. Sugarmade will
acquire 40% of
for $700,000 and will be granted an option to purchase an
additional 30% stake, providing
with a controlling interest in the growing delivery service, which
the greater Sacramento metropolitan area.
"Many of us have seen the multitudes of negative news stories about
problems in California's regulated cannabis industry. While
there certainly are issues, there are also many positive changes
happening as State
regulators fine-tune the system," commented Jimmy Chan, CEO of
Sugarmade. "One of these positive changes is the ongoing
crackdown on illegal
operators, who have made it difficult for licensed operators to
make profits. As illegal operators are
driven out of the market, companies like
will have meaningfully improved business fundamentals. While
this was an important consideration relative to our investment, we
are also excited about many other aspects of the
business and its future
offers a wide range of cannabis products for delivery to the
greater Sacramento, California metropolitan area. The greater
metropolitan statistical area, according to data from the State of
is California's third-largest consisting of approximately 2.4
million people with growth of approximately 20% over the past
decade. The Sacramento area population is showing growing
acceptance of cannabis usage and delivery and scores above the
percentile in terms of cannabis usage per capita.
pricing philosophy is to price for value via a strategy of directly
acquiring products from farms and processors. By maintaining
its own cars, California licenses, and its own fulfillment
is able to maintain tight cost controls allowing some of these
savings to flow to consumers via lower prices.
The $700,000 investment in
will be utilized by the firm for service and product improvements
and to expand the number of geographic
areas served. None of the investment is being used to buy out
previous equity stakeholders of
Mr. Chan continued, "Sugarmade is in talks with multiple other
licensed cannabis processors, delivery services and retailers for
combinations, as part of
our corporate growth initiative. We plan to take advantage of
the many changes in the California marketplace, with
being the first of what we expect to be many other growth-oriented
About Sugarmade, Inc.
Sugarmade, Inc. (OTCQB:
SGMD) is a product and branding marketing company investing in
operations and technologies with disruptive potential. For
more information please reference
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
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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
performance, based on assumptions currently believed to be valid.
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performance. Examples of forward-looking statements include, among
others, statements relating to future sales, earnings, cash
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
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
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.