Sugarmade
CEO Outlines Corporate Growth Strategy - New Areas of Business
Operations Hold Tens of Millions Revenue
Potential Per
Location
NEW YORK,
NY -- February 20, 2020 -- InvestorsHub NewsWire -- Sugarmade, Inc.
(OTCQB:SGMD)
("Sugarmade", "SGMD", or the "Company"), today announces statements
from Chief Executive Officer, Jimmy Chan, relating to the Company's
growth strategy within the regulated California cannabis
marketplace.
"The
regulated cannabis market in California is changing quickly with
new investment and operational opportunities opening as acceptance
grows among the public, as the industry moves past its initial
growth stage and as the crackdown on black market operators
continues," commented Mr. Chan. "Several market sectors where
prospects looked bleak only a few months ago, now hold strong
promise. It is in these areas where we are targeting our
investing activities. In particular, we are seeing strong
opportunities in delivery services (non-storefront retailer),
manufacturing via co-branding and selective genetic
cultivation. But, we believe being highly selective and
targeting only the best of these opportunities is the only sound
strategic growth strategy. This is the corporate mission for
Sugarmade moving into the rest of 2020."
Sugarmade
recently took an equity stake and acquired an option to gain a
controlling interest in Sacramento, California based Budcars, a
licensed cannabis delivery service. Mr. Chan continued, "This
first corporate action is expected to be one of many relative to
the Company's aggressive expansion plans within the dynamic and
fast-growing legal California cannabis marketplace. Over the
coming weeks, Sugarmade plans to solidify several of these
opportunities, especially relating to direct sales channels and
geographic expansion.
A summary
of planned upcoming business expansion plans is provided
below:
Geographic Expansion
of Budcars. Budcars currently delivers to the greater
Sacramento metro area, but plans are already underway to expand the
scope of deliveries. The management team plans to expand both
through direct expansion and via strategic acquisition where
possible.
New
Delivery Geographies. Sugarmade is already in talks to
acquire or to invest in ownership stakes of other delivery
services. The first of these is likely to be in Northern
California with up to three additional opportunities already being
vetted in Southern California. The Company believes each of
these locations has a revenue potential of $15 million to $20
million per year.
Cannabis
Cultivation. Through our extensive industry contacts, we have
been able to identify multiple investable cultivation
operations. We have entered into direct talks with several
operators and have issued several proposals. We see investing
in cultivation operations as being important to our new hybrid
vertical integration strategy that will not only allow us to
control the quality of products, but to also selectively lower
costs while providing retail cannabis customers a superior shopping
experience.
Product
Technology Expansion. As part of its new growth strategy,
Sugarmade has begun working with several technology innovators on
new cannabis products, including products containing exotic and
lesser-known cannabinoids. The Company plans to introduce
these innovations to the marketplace later this year in the form of
new regulated products to be sold at licensed retail
locations.
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
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
Corporate
Communications:
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