Sugarmade
Issues Letter to Shareholders on Coming Expansion
Steps
NEW YORK, NY -- October 12, 2020 -- InvestorsHub NewsWire
-- Sugarmade,
Inc. (OTCMKTS:SGMD)
("Sugarmade", "SGMD", or the "Company") is pleased
to
issue
the following Letter
to
Shareholders on
behalf of the CEO:
Dear Valued Shareholder,
This is an exciting moment in the history of Sugarmade. We have
assembled the building blocks of a coherent and cohesive strategic
vision, and we are more grateful than ever for your continued
patience, commitment, and support as we put in motion key next
steps to manifest that
vision
and drive strong and sustained shareholder value as a key emerging
leader in the California cannabis marketplace.
Today, I want to highlight two themes that will help to drive our
value proposition for shareholders over the intermediate
term: geographic
expansion for
BudCars
and
our move
to vertically
integrate through the establishment of cultivation
operations. Together,
they represent tangible catalysts driving both top and bottom line
growth.
As you may be aware, we have been working to expand the scope,
scale, and reach of BudCars,
a
rapidly growing leader in the California cannabis delivery
space –
where we
hold a 40% stake, with an option to take a controlling 70% stake,
and where we are actively engaged in strategic and operational
execution of
the business.
BudCars has demonstrated dramatic
growth
over the past 6-8 months, consistently surpassing our modeled
expectations as customer acquisition and per-order volumes have
powered organic growth within the geographic reach of the BudCars
delivery zone in the Sacramento metropolitan area in Northern
California. However, to fuel the next phase of our overarching
vision, we must begin to expand our geographic reach.
Today, I have good news: that expansion is officially
underway. We
are expanding BudCars
initially
into the North San Francisco Bay Area and the Wine Country
Counties. That will be followed by our grand opening of BudCars Los
Angeles, which we anticipate now will
take
place sometime in November.
The initial move into the North
Bay Wine
Country area
is
ripe with potential. Recent data covering
cannabis-related
tax receipts from
Sonoma County suggest
the area is experiencing a cannabis
boom,
with growth of over 35%, according to a
North
Bay
Business
Journal
report.
As we begin to see tourism return in the wake of the global
pandemic health crisis, we anticipate this region to represent one
of the strongest bets as well, and
we are excited about positioning BudCars to capitalize on that
growth trend.
Expansion in the North Bay Wine Country area will be a key driver
for BudCars because it represents more than a doubling of our total
delivery territory, with
the newly added delivery
radius
focused on a strong and rapidly growing region.
That expansion move will be quickly followed by our BudCars LA
grand opening, which, as noted above, we expect to take place next
month. Los
Angeles is an
enormous market for cannabis sales. It stands as
perhaps the largest metropolitan cannabis marketplace on the
planet. And we will be thrilled to see BudCars lay down
roots and
start taking market share in the area.
Finally, we are also excited about building our cultivation
presence. As noted in recent Company communications, we have
secured a property zoned for
cannabis cultivation, and we are
currently
working with regulators to move forward with the property. This
move will function to widen our margins on BudCars sales as well
as to
position
Sugarmade to capitalize on growing demand in a chronically
undersupplied marketplace. Because of our access
to end-market
consumers
through our BudCars distribution
channel,
we will also have an advantage over other cultivators in
establishing a branded line of cannabis products, further
supporting widening margins at each point
in the chain.
These are exciting times for Sugarmade.
We have a rapidly growing business, and we
are taking concrete
steps now to build on that growth. Once again, we are very grateful
to our committed base of support, and I look forward to keeping you
engaged as we continue to make new strides and reach new
milestones.
Best Regards,
Jimmy Chan, CEO
About Sugarmade, Inc.
Sugarmade, Inc. (OTCMKTS:
SGMD)
is a product and branding marketing company investing in operations
and technologies with disruptive potential. Our Brand portfolio
includes CarryOutsupplies.com, SugarRush™
and Budcars.com. 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
Public
Relations:
Tiger Marketing
& Branding Agency
info@TigerGMP.com
www.TigerGMP.com
Corporate
Communications:
InvestorBrandNetwork
(IBN)
Los Angeles,
California
www.InvestorBrandNetwork.com
310.299.1717
Office
Editor@InvestorBrandNetwork.com