- Most recently SGMD signed MOU to obtain three non-storefront California cannabis licenses.
- Sugarmade plans to open three new Nug Avenue cannabis delivery hubs in the Los Angeles metro area.
- In May, the company completed the acquisition of Lemon Glow Company Inc., along with all of its assets, interests, property and rights.
In a series of strategic acquisitions, Sugarmade Inc. (OTC: SGMD
) has strengthened its position as a growing presence in the California cannabis sector. The company, which is currently a central player in the state’s expanding cannabis delivery space, is focused on developing a full farm-to-door vertically integrated cannabis business.
In the company’s most recent move, Sugarmade signed a memorandum of understanding to obtain three non-storefront California cannabis licenses from the Los Angeles Department of Cannabis Regulation, along with corresponding licenses from the California Bureau of Cannabis Control (https://cnw.fm/rSPwN
). Combined, the licenses provide the foundation for the opening of three new Nug Avenue cannabis delivery hubs in the Los Angeles metro area; Sugarmade currently owns a 70% stake in NUG Avenue, a cannabis delivery service based in southern California that offers hand-selected, top-shelf cannabis products.
“Our first Nug Avenue location has been a tremendous success, but we need to expand due to overwhelming demand,” said Sugarmade CEO Jimmy Chan. “Holding these licenses will provide an optimal solution to our current growth limitations. By using these licenses to cover manufacturing, distribution and delivery, we hope to further develop our fully vertical approach to the dynamic California cannabis delivery market. With this agreement, we gain the potential to manufacture and package our own cannabis products, distribute them to multiple Nug Avenue locations, and then deliver them right to the front door of our loyal customer base, driving both top-line and bottom-line growth potential as we expand our footprint in this rapidly growing space.”
Just a month earlier, in May, Sugarmade completed the acquisition of Lemon Glow Company Inc., along with all of its assets, interests, property and rights; a key piece of the acquisition included 640 acres of Lake County real estate located outside of the commercial cannabis cultivation exclusion zones (https://cnw.fm/0MwS5
). According to the company, 32 acres of the property have already been designated for outdoor cannabis cultivation, and 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.
“This step brings us closer to closing the loop on what we believe to be one of the most promising vertically integrated cannabis models in the thriving California market,” said Chan. “We are setting the stage to improve margins while expanding end-market access, and to grow, refine, produce, distribute, sell, and home-deliver top cannabis products in the largest and fastest growing cannabis market on the planet. This acquisition positions us to achieve that objective with a significant capacity to scale as demand for our products and services grows over time.”
Sugarmade Inc. is a product and branding marketing company investing in operations and technologies with disruptive potential. In addition to its financial interest in the BudCars brand, SGMD’s brand portfolio includes NUG Avenue, CarryOutsupplies.com and SugarRush(TM).
To learn more about Sugarmade, please visit www.sugarmade.com
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