NetworkNewsBreaks – Sugarmade Inc. (SGMD) Signs
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Posted On: 09/23/2020 5:31:10 PM
NetworkNewsBreaks – Sugarmade Inc. (SGMD) Signs LOI, Plans to Operate California Cannabis Cultivation Facility
Sugarmade Inc. (OTCQB: SGMD), a leading, multidivisional/multiproduct/multisector supply company announced it has signed a nonbinding letter of intent (“LOI”) to negotiate a definitive lease agreement granting access to an estimated 40 acres of property located in North California. The LOI is with LMK Capital LLC. SGMD announced that it plans to allocate five acres of the parcel for the operation of a licensed, regulated cannabis cultivation company. Sugarmade has other cannabis interests. The company currently owns a 40% stake in BudCars, a cannabis delivery company operating in the San Francisco area; the company also has an option to increase that share to 30%. Sugarmade estimates the five acres under negotiation could produce as much as 8,000 pounds (or more than 3,628,700 grams) of cannabis flower per year. “We continue to take strategic steps toward broadening our exposure to the growth trend in the cannabis market,” said Sugarmade CEO Jimmy Chan. “We see this as a secular growth trend that is still very much in its early innings. And we believe our positioning in California puts us close to the current epicenter of that trend. In addition, we are committed to increasing verticalization of operations as a context for our investment in the BudCars cannabis delivery business. If we are able to finalize the lease, we expect that this could drive a substantial widening of margins on the growing volume of BudCars sales.”
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
Sugarmade Inc. (OTCQB: SGMD), a leading, multidivisional/multiproduct/multisector supply company announced it has signed a nonbinding letter of intent (“LOI”) to negotiate a definitive lease agreement granting access to an estimated 40 acres of property located in North California. The LOI is with LMK Capital LLC. SGMD announced that it plans to allocate five acres of the parcel for the operation of a licensed, regulated cannabis cultivation company. Sugarmade has other cannabis interests. The company currently owns a 40% stake in BudCars, a cannabis delivery company operating in the San Francisco area; the company also has an option to increase that share to 30%. Sugarmade estimates the five acres under negotiation could produce as much as 8,000 pounds (or more than 3,628,700 grams) of cannabis flower per year. “We continue to take strategic steps toward broadening our exposure to the growth trend in the cannabis market,” said Sugarmade CEO Jimmy Chan. “We see this as a secular growth trend that is still very much in its early innings. And we believe our positioning in California puts us close to the current epicenter of that trend. In addition, we are committed to increasing verticalization of operations as a context for our investment in the BudCars cannabis delivery business. If we are able to finalize the lease, we expect that this could drive a substantial widening of margins on the growing volume of BudCars sales.”
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
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