NEW YORK, Feb. 20, 2020 /PRNewswire/ -- 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.
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.
SOURCE Sugarmade, Inc.