Sugarmade, Inc. (OTC:SGMD) has announced a strategic acquisition of a 70% stake in Nug Avenue's Lynwood operations for $560,000. This deal enables Sugarmade to claim 70% of revenues and profits from Nug Avenue’s delivery services in the Los Angeles area. CEO Jimmy Chan emphasized the importance of this venture in the rapidly growing California cannabis market, particularly in LA County, which represents over 25% of the state's population. Sugarmade aims to leverage its location for efficient service delivery to over 15 million consumers within a 30-mile radius.
Sugarmade, Inc. (OTCQB:SGMD) announced strong performance for its BudCars Cannabis Delivery Service for Q3 2020. The service achieved gross receipts of nearly $2 million, a 66% increase from the previous quarter, and gross profits of $903,667, reflecting a 64% quarter-over-quarter growth. Average daily gross sales climbed 68%, and customer tickets grew by 62%. The company plans to expand BudCars into new territories, including North Bay and Los Angeles, and has secured a property for cannabis cultivation, aiming for greater profit margins through vertical integration.
Sugarmade, Inc. (OTCMKTS: SGMD) announced a strategic expansion for its cannabis delivery service, BudCars, which holds a 40% stake with an option for 70%. The company will initially expand into the North San Francisco Bay Area and Wine Country, anticipating strong growth potential due to a 35% cannabis tax receipt increase in Sonoma County. BudCars is set to launch in Los Angeles next month, targeting the largest cannabis market. Additionally, Sugarmade is establishing cultivation operations to enhance product margins and meet demand.
Sugarmade, Inc. (OTCMKTS:SGMD) has signed a lease agreement for 5 acres of cannabis-zoned land in Northern California with LMK Capital, LLC. The company plans to establish a licensed cannabis production facility aiming to produce up to 3.6 million grams of premium cannabis annually. Sugarmade will market products under both white-label and branded categories, including through BudCars, in which it holds a 40% stake. The cannabis cultivation licensing process is underway, with positive engagement from county officials.