Sugarmade Secures Cultivation Facility Worth Up to $1.6M in Additional Monthly BudCars Cannabis Delivery Sales
June 23 2020 - 8:25AM
InvestorsHub NewsWire
NEW YORK, NY -- June
23,
2020
-- InvestorsHub NewsWire -- Sugarmade,
Inc. (OTCQB:SGMD)
("Sugarmade", "SGMD", or the "Company"),
and
its BudCars
Cannabis Delivery Service ("BudCars"), is
excited to announce that
the
Company is submitting an
application to
the California
Bureau of Cannabis Control to
expand into cannabis cultivation as
part of a strategic plan to partially
verticalize
its
BudCars
model, a
process that management strongly believes will
further increase the Company's gross profitability over the
long-term and
provide a rapid potential
path
to branded product development.
The Company has already secured a property containing a
5,000
square-foot
indoor premium cannabis cultivation facility located
in very
close
proximity to its Sacramento BudCars hub.
Jimmy Chan, CEO of Sugarmade,
noted, "BudCars is a high margin, high-growth business. But it will
still benefit from verticalization.
Because we have access to our end-market consumer directly and we
have cultivation expertise and a premium grow facility, an
expansion into cultivation to connect the dots is
a
clearly advantageous move. In
addition, because BudCars is a rapidly growing distribution
channel, we will have a clear
edge in the marketplace in terms of the capacity
to establish
our own branded
cannabis product line."
Based on Company research, the indoor
facility is
capable of
housing
up to 250 high-quality LED lights, suggesting production
potential for
as
much as 250
lbs
of
premium dried cannabis flower per month.
Based on current data, premium cannabis sells
for approximately
$14.28
per
gram
on average in the
Sacramento marketplace,
suggesting that the new facility will have the capacity to produce
total output worth as much as $1.6
million
in new BudCars sales to end-market consumers per
month (over and above current BudCars sales activity), and at a
significantly higher
gross
margin on a per unit basis, given cost savings associated with
vertical farm-to-door operations.
Chan continued,
"We
believe this
facility is in a 'sweet spot' when it comes to cultivation license
application approvals. We look forward to providing our current and
prospective shareholders with more details on this project,
including an anticipated timeline to initial harvest, in the very
near future."
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
Public
Relations:
Tiger Global
Management
info@TigerGMP.com
www.TigerGMP.com
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