Sugarmade, Inc. (OTC: SGMD) is a product and brand marketing company investing in operations and technologies with disruptive
potential. The company is focused on collaborating with real people in real-time to identify the emerging desires and behaviors poised to unlock new opportunities and pathways for growth. Sugarmade seeks to redefine the marketplace by nurturing an innovative and compelling relationship between brand, botany and business – resulting in both undeniable consumer value and an intriguing cross-pollination of revenue sources.
The company’s core strategic plan is centered on expanding its end-market access as a central player in the growing California cannabis delivery marketplace while developing its in-house cannabis production capacity to verticalize operations in the space. Through a combination of organic growth and strategic acquisitions, Sugarmade intends to develop a full farm-to-door
vertically integrated cannabis business.
Sugarmade has investments in a number of subsidiaries with active operations in the California cannabis sector. These include:
- NUG Avenue – Sugarmade owns a 70% stake in NUG Avenue, a cannabis delivery service based in Southern California providing hand-selected top-shelf products from Stiiizy, Kanha, PlugPlay and more.
- BudCars – Sugarmade is an investor in cannabis delivery service of BudCars’ first operating location in Sacramento, California. BudCars is an online-shopping experience designed to provide new customers with an easy way to discover
and order cannabis products within minutes.
Acquisition of Lemon Glow Company
On May 17, 2021, Sugarmade took a major step toward closing the loop on what its management team believes to be one of the most promising vertically integrated cannabis models in the thriving California market when it announced the signing of a definitive agreement for its acquisition of Lemon Glow Company Inc.
The Lemon Glow acquisition includes 640 acres of property, 32 of which have already been designated for outdoor cannabis cultivation. Per the company’s news release, the annual potential cultivation yield at the property is estimated to be approximately 4,000 pounds of dry trimmed cannabis flower per acre per year, which represents approximately 128,000 pounds, or 64 tons, of
dry trimmed cannabis flower per year in total.
Notably, Sugarmade also benefits from the acquisition in terms of team capital, as Lemon Glow executive team members will stay on and become the core management team at the cannabis cultivation site, granting the operation over 30 years of cannabis cultivation experience.
“The Lemon Glow team are tremendous additions to the Sugarmade team,” Jimmy Chan, CEO of Sugarmade, commented in announcing the definitive agreement. “They have vast experience and established skills, as well as intricate knowledge of the property and its local grow context. That’s an enormous added value proposition in this deal. We look forward to bringing
them on board, ramping up operations at the property, and taking key steps toward delivering on the promise of Sugarmade’s farm-to-door vision.”
- Sugarmade Inc. aims to expand its end-market access as a central player in the growing California cannabis delivery marketplace while developing its in-house cannabis production capacity to verticalize operations in the space.
- The company has made key cannabis industry investments in NUG Avenue and BudCars.
- On May 17, 2021, Sugarmade announced its entry into a definitive agreement for its acquisition of Lemon Glow Company Inc.
- The Lemon Glow acquisition includes 640 acres of property, 32 of which have already been designated for outdoor cannabis cultivation.
- California’s legal market hit $4.4 billion in sales in 2020, up from $2.8 billion in 2019.
InvestorNewsBreaks - Sugarmade Inc. (SGMD) Subsidiary Inks MSA for Manufacturing, Distribution Expansion
August 22, 2022 9:00 AM
Sugarmade (OTC: SGMD) subsidiary SugarRush has signed a management services agreement (“MSA”) with Canndis Inc., a California cannabis micro-license holder. The MSA outlines an expansion for the company’s manufacturing and distribution operations based on Canndis’ license, which includes delivery, manufacturing, distribution and cultivation capabilities. The MSA calls for Sugarmade to take over cannabis product manufacturing, distribution, delivery licensing and
facility management ahead of Canndis’s first harvest at its Jerusalem Grade Farm; the farm is licensed for 43,560 square feet of outdoor canopy area and is growing at full capacity this season. According to the announcement, the MSA provides for the establishment of a new strategically located manufacturing and distribution hub. Sugarmade is an emerging leader in the licensed cannabis sector. “This deal will provide us with a new income stream as we apply our expertise and experience
to mobilize Canndis’ assets and market positioning,” said Sugarmade CEO Jimmy Chan in the press release. “But it also has substantial strategic value because it lays a foundation for a significantly expanded manufacturing and distribution infrastructure under our control when we harvest our first crop in two months.”
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