Sugarmade (OTC: SGMD)
, a product and branding marketing company investing in operations and technologies with disruptive potential, has signed a memorandum of understanding (“MOU”) outlining the acquisition of three non-storefront California cannabis licenses. The licenses come from the Los Angeles Department of Cannabis Regulation (“DCR”), as well as corresponding licenses from the California Bureau of Cannabis Control (“BCC”). This strategic move creates a licensing foundation for the opening of three new Nug Avenue cannabis delivery hubs in the Los Angeles metro area. Sugarmade acquired a 70% stake in Nug Avenue earlier this year; those terms will continue in all new Nug Avenue locations. The acquisition has allowed Sugarmade to recognize 100% of revenue and 70% profits generated from the Lynwood delivery service operations. These terms will carry over to each new Nug Avenue location as the Company expands. The announcement noted that each of the three licenses can be used for three of the five categories of licensed cannabis-related business activities, and Sugarmade will likely use the licenses for a combination of retail delivery of cannabis products, supply chain distribution of cannabis products, or manufacturing/packaging of 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 in the press release. “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.”
To view the full press release, visit https://ibn.fm/4sPjX
About Sugarmade Inc.
Sugarmade is a product and branding marketing company investing in operations and technologies with disruptive potential. The company’s portfolio includes CarryOutsupplies.com, SugarRush(TM), NUG Avenue and Budcars. For more information about the company, please visit www.Sugarmade.com
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